Here are Third Point Management's Views on Somnigroup International (SGI)

Third Point Management, a New York-based investment advisor, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Third Point returned 1.9% net in the flagship Offshore Fund in Q4 2025. The same trends that drove markets higher in Q4 2025 have extended to early 2026. In an AI-dominated market, capital-intensive businesses and the healthcare sector are gaining attention from investors. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Third Point Management highlighted stocks such as Somnigroup International Inc. (NYSE:SGI). Somnigroup International Inc. (NYSE:SGI) is a US-based mattresses and bedding products manufacturer. On February 6, 2026, Somnigroup International Inc. (NYSE:SGI) stock closed at $96.32 per share. One-month return of Somnigroup International Inc. (NYSE:SGI) was 4.13%, and its shares are up 48.76% over the past twelve months. Somnigroup International Inc. (NYSE:SGI) has a market capitalization of $20.218 billion.

Third Point Management stated the following regarding Somnigroup International Inc. (NYSE:SGI) in its fourth quarter 2025 investor letter:

"Somnigroup International Inc. (NYSE:SGI) is the dominant player in US mattresses and has grown its share of the domestic wholesale market from 27% in 2018 to over 40% in 2024. The company is led by Scott Thompson, who we see as a forward-thinking CEO who has leveraged the business’ scale advantage to take share from an overleveraged set of competitors in a slowing housing market.

In Q1 2025, Somnigroup completed its merger with the largest mattress retailer, Mattress Firm (estimated retail market share of 40%), and is now leveraging this advantaged distribution to accelerate share gains. Its Tempur wholesale product has already ramped from an estimated ~48% of Mattress Firm sales at the time of deal close to over 60% of volumes today. The proforma entity’s 2,200 locations and $1.8 billion of run-rate sales and marketing spend are each more than twice the size of the second and third largest mattress competitors combined..." (Click here to read the full text)

Somnigroup International Inc. (NYSE:SGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 61 hedge fund portfolios held Somnigroup International Inc. (NYSE:SGI) at the end of the third quarter, up from 56 in the previous quarter. While we acknowledge the potential of Somnigroup International Inc. (NYSE:SGI) 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 addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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