Bristol Gate Capital Partners, an investment management firm, published its Q3 2025 investor letter for the “US Equity Strategy.” A copy of the letter can be downloaded here. The strategy underperformed the benchmark, the S&P 500® Total Return Index, this quarter, but still outperformed the index in dividend growth. The underperformance was due to a lack of significant exposure to the AI/TMT sector or the Value sector, which offers upside from the Federal Reserve’s rate cut. The portfolio delivered 15% dividend growth over the past 12 months, driven by strong underlying fundamentals. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, Bristol Gate US Equity Strategy highlighted stocks like Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) offers financial management, payments and capital, compliance products and services. Intuit Inc. (NASDAQ:INTU)’s monthly performance was 5.39% and its stock gained 6.58% in the past 52 weeks. On December 30, 2025, Intuit Inc. (NASDAQ:INTU) stock closed at $669.88 per share, with a market capitalization of $186.495 million.
Bristol Gate US Equity Strategy stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q3 2025 investor letter:
“Carrier, Accenture and mentuit inc. (NASDAQ:INTU) were the main detractors from an absolute perspective. Intuit declined primarily as the company’s outlook and guidance for the next fiscal year fell short of some investors’ expectations. Continued weakness in MailChimp (marketing platform) and a decline in total TurboTax units as the company focuses on higher-value customers also fueled concerns. For FY26, management stated that EPS is expected to be $22.98-23.18 versus the consensus of $23.02, representing 14.5% year-over-year growth at the midpoint. Revenue is forecast to be $20.997-$21.186 billion versus $21.1 billion in consensus, and up 12% at the midpoint. The consensus may have been disappointed with the guidance, but we were not. Intuit continues to make progress in penetrating the assisted tax market and larger companies with its accounting platform. “We believe both segments will help maintain attractive growth for years to come.”
Intuit Inc (NASDAQ:INTU) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 96 hedge fund portfolios owned Intuit Inc. (NASDAQ:INTU) at the end of the third quarter, up from 105 in the previous quarter. In the first quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $3.9 billion, an increase of 18% year over year. While we recognize the potential of Intuit Inc. (NASDAQ:INTU) 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.