Temporary ERP Implementation Issues Weighed on Resideo Technologies (REZI) in Q4

Pzena Investment Management recently released its fourth-quarter 2025 commentary for “Pzena Global Small Cap Focused Value Strategy.” A copy of the letter is available for download here. Robust earnings and improved investor sentiment boosted the performance of global small-cap equities in the fourth quarter. U.S. small caps slightly lagged behind large caps, whereas international small caps saw gains due to investor interest in revenue recovery, balance sheet health, and management execution. The portfolio underperformed the MSCI World Small Cap Index during this period and returned -1.0% vs 2.8% for the Index. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Pzena Global Small Cap Focused Value Strategy highlighted stocks like Resideo Technologies, Inc. (NYSE:REZI). Resideo Technologies, Inc. (NYSE:REZI) is a US-based company that provides home comfort and safety and security solutions. On March 09, 2026, Resideo Technologies, Inc. (NYSE:REZI) stock closed at $35.41 per share. One-month return of Resideo Technologies, Inc. (NYSE:REZI) was -1.50%, and its shares gained 99.38% over the past 52 weeks. Resideo Technologies, Inc. (NYSE:REZI) has a market capitalization of $5.36 billion.

Pzena Global Small Cap Focused Value Strategy stated the following regarding Resideo Technologies, Inc. (NYSE:REZI) in its fourth quarter 2025 investor letter:

"Consumer discretionary, industrials, and real estate all detracted from performance this quarter. Home comfort and security system company Resideo Technologies, Inc. (NYSE:REZI) gave back some of its prior-quarter gains after lowering its full-year outlook due to temporary ERP implementation issues in its ADI distribution business and softer thermostat demand from HVAC channel destocking."

Resideo Technologies, Inc. (NYSE:REZI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held Resideo Technologies, Inc. (NYSE:REZI) at the end of the fourth quarter, up from 46 in the previous quarter. While we acknowledge the potential of Resideo Technologies, Inc. (NYSE:REZI) 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 Resideo Technologies, Inc. (NYSE:REZI) and shared a list of best industrial stocks to buy according to Wall Street analysts. 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.