Magellan Asset Management, an investment management company, published the Q3 2025 investor letter for the Magellan Global Fund. A copy of the letter can be downloaded here. The fund focuses on outstanding companies at attractive prices while leveraging a deep understanding of the macroeconomic landscape to manage risk. Measured by the MSCI World Index in dollars, global stocks rose 7.3% in the September quarter. The portfolio underperformed the index in the quarter due to the strong performance of the most speculative companies in the risk environment. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, Magellan Global Fund highlighted stocks like SAP SE (NYSE:SAP). SAP SE (NYSE:SAP) is a leading provider of business solutions and enterprise applications. SAP SE (NYSE:SAP)’s monthly performance was 2.48% and its stock lost 3.21% of its value in the last 52 weeks. On December 12, 2025, SAP SE (NYSE:SAP) stock closed at $242.98 per share, with a market capitalization of $285.666 million.
Magellan Global Fund stated the following regarding SAP SE (NYSE:SAP) in its Q3 2025 investor letter:
“The biggest detractors of the portfolio’s performance during the quarter were Chipotle Mexican Grill, Intuit & SAP SE (NYSE: SAP). SAP faced headwinds amid market concerns about the disruptive potential of AI. “While we recognize the validity of some concerns, we believe the market reaction has been indiscriminate with SAP well positioned as the market leader in the highly defensible Enterprise Resource Planning (ERP) category, while benefiting from the tailwind of accelerated cloud adoption.”
SAP SE (NYSE:SAP) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 34 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the third quarter, up from 32 in the previous quarter. While we recognize the potential of SAP SE (NYSE:SAP) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
In another article, we covered SAP SE (NYSE:SAP) and shared Polen International Growth Strategy’s views on the company. Also, see our Q3 2025 Letters to Hedge Fund Investors page for more letters to hedge fund investors and other leading investors.