Hotchkis & Wiley, an investment management firm, released its Q4 2025 investor letter for the “Hotchkis & Wiley Global Value Fund.” A copy of the letter can be downloaded here. The Fund outperformed the MSCI World Value Index in the fourth quarter, returning 3.80% versus 3.34% for the index. The Fund has returned 23.77% year to date compared to 20.79% for the Index. Positive stock selection boosted the Fund’s performance in both the fourth quarter and the calendar year. In 2025, non-U.S. stocks significantly outperformed domestic stocks, but the valuation gap remained broadly unchanged and the Fund remained overweight non-U.S. stocks. The firm considers the potential of certain software companies to be very attractive, given current market conditions. Review the Fund’s top five holdings for its key picks for 2025.
In its Q4 2025 investor letter, Hotchkis & Wiley Global Value Fund highlighted Alphabet Inc. (NASDAQ:GOOGL) as one of its top individual contributors. Alphabet Inc. (NASDAQ:GOOGL), Google’s parent company, offers several platforms and services operating through the Google Services, Google Cloud, and Other Bets segments. Alphabet Inc. (NASDAQ:GOOGL)’s monthly performance was 7.33% and its stock gained 65.79% in the past 52 weeks. On January 29, 2026, shares of Alphabet Inc. (NASDAQ:GOOGL) closed at $338.25 per share, with a market capitalization of $4.097 trillion.
Hotchkis & Wiley Global Value Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOGL) is a holding company whose main subsidiary is Google, which is the largest advertising company in the world. In addition to Search, Alphabet’s other businesses are its enterprise cloud platform and venture-stage companies collectively reported as “Other Bets.” The company’s stock outperformed following strong 3Q25 results that beat expectations across the board, boosting investor confidence in the company’s ability to turn AI opportunities into growth. “That outperformance continued as Google delivered strong new AI products that appear to be taking a significant chunk of Consumer Chatbot activity from OpenAI’s ChatGPT.”
Alphabet Inc. (NASDAQ:GOOGL) ranks fourth on our list of the 30 most popular stocks among hedge funds. According to our database, 243 hedge fund portfolios owned Alphabet Inc. (NASDAQ:GOOGL) at the end of the third quarter, up from 219 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ:GOOGL) achieved its first revenue of $100 billion. While we recognize the potential of Alphabet Inc. (NASDAQ:GOOGL) 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’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.