London Company Large Cap Strategy Increased Its Holdings in Norfolk Southern Corporation (NSC)

The London Company, an investment management company, released “The London Company Large Cap Strategy” fourth-quarter 2025 investor letter. In Q4 2025, US equities ended the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. A copy of the letter can be downloaded here. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. Against this backdrop The London Company Large Cap portfolio returned 0.4% (0.2% net) compared to a 2.4% increase in the Russell 1000 Index. Volatility factors and concentrated market leadership were notable headwinds to the Strategy’s performance in the quarter.  Heading into 2026, the economic and policy backdrop presents a blend of confidence and doubt. Against this backdrop, the portfolio remains stable and believes it can help investors in long-term wealth creation while managing downside risk. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted Norfolk Southern Corporation (NYSE:NSC). Norfolk Southern Corporation (NYSE:NSC) is a transportation company that specializes in rail transportation of raw materials, intermediate products, and finished goods. On February 17, 2026, Norfolk Southern Corporation (NYSE:NSC) stock closed at $316.12 per share. One-month return of Norfolk Southern Corporation (NYSE:NSC) was 9.35%, and its shares are up 26.93% over the past twelve months. Norfolk Southern Corporation (NYSE:NSC) has a market capitalization of $70.99 billion.

The London Company Large Cap Strategy stated the following regarding Norfolk Southern Corporation (NYSE:NSC) in its fourth quarter 2025 investor letter:

"Increased: Norfolk Southern Corporation (NYSE:NSC) – Added to our NSC position after the shares pulled back despite the pending UNP deal. It is currently trading at a discount to the value of the UNP deal and the rail industry is out of favor. While most recent earnings were softer than expected, NSC has shown signs of improving its execution and volumes should return incrementally. Lastly, the chairman stepped up and purchased shares in the open market, which we view as a sign of conviction in the business."

Norfolk Southern Corporation (NYSE:NSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 81 hedge fund portfolios held Norfolk Southern Corporation (NYSE:NSC) at the end of the third quarter, up from 71 in the previous quarter. While we acknowledge the potential of Norfolk Southern Corporation (NYSE:NSC) 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 Norfolk Southern Corporation (NYSE:NSC) and shared a list of stocks on Jim Cramer’s radar. 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.