Giverny Capital Asset Management Trimmed Ametek (AME) on Valuation

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's underweight in large tech and overweight in smaller niche leaders. While portfolio companies are excelling in earnings growth and capital returns, the market is fixated on AI investments, leaving the actual benefits unclear. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Giverny Capital Asset Management highlighted AMETEK, Inc. (NYSE:AME). AMETEK, Inc. (NYSE:AME) is a leading manufacturer of electronic instruments and electromechanical devices. On January 30, 2026, AMETEK, Inc. (NYSE:AME) stock closed at $223.98 per share. One-month return of AMETEK, Inc. (NYSE:AME) was 6.00%, and its shares gained 21.64% of their value over the last twelve months. AMETEK, Inc. (NYSE:AME) has a market capitalization of $51.56 billion.

Giverny Capital Asset Management stated the following regarding AMETEK, Inc. (NYSE:AME) in its fourth quarter 2025 investor letter:

"During the quarter we trimmed Ametek, based on valuation. AMETEK, Inc. (NYSE:AME) is a wonderful company, but the stock has gotten expensive relative to its growth rate and we opted to shrink the position size."

AMETEK, Inc. (NYSE:AME) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 58 hedge fund portfolios held AMETEK, Inc. (NYSE:AME) at the end of the third quarter, up from 53 in the previous quarter. While we acknowledge the potential of AMETEK, Inc. (NYSE:AME) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered AMETEK, Inc. (NYSE:AME) and shared the list of most profitable manufacturing stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.