The London Company, an investment management company, released “The London Company Mid Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. After two years of robust earnings, US equities entered a correction territory in Q1. The portfolio declined 4.3% (-4.5%, net) during the quarter compared to a 3.4% decrease for the Russell Midcap Index. Sector exposure was a headwind to the strategy’s relative performance in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, The London Company Mid Cap Strategy highlighted stocks such as Otis Worldwide Corporation (NYSE:OTIS). Otis Worldwide Corporation (NYSE:OTIS) engages in the manufacturing, installation, and servicing of elevators and escalators. The one-month return of Otis Worldwide Corporation (NYSE:OTIS) was -1.26%, and its shares gained 0.49% of their value over the last 52 weeks. On May 12, 2025, Otis Worldwide Corporation (NYSE:OTIS) stock closed at $98.00 per share with a market capitalization of $38.509 billion.
The London Company Mid Cap Strategy stated the following regarding Otis Worldwide Corporation (NYSE:OTIS) in its Q1 2025 investor letter:
“Otis Worldwide Corporation (NYSE:OTIS) – Despite tough 4Q24 earnings, OTIS shares rallied in the first quarter due to its low exposure to tariffs/global trade war risks. Our conviction in the stock reflects the company’s strong execution in the China market despite macro headwinds and the oligopolistic nature of the elevator and escalator industry.”
A technician in a safety harness inspecting a passenger elevator in a modern office building.
Otis Worldwide Corporation (NYSE:OTIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held Otis Worldwide Corporation (NYSE:OTIS) at the end of the fourth quarter which was 32 in the previous quarter. Otis Worldwide Corporation (NYSE:OTIS) reported revenue of $3.3 billion in Q1 2025 with organic sales flat year over year. While we acknowledge the potential of Otis Worldwide Corporation (NYSE:OTIS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered Otis Worldwide Corporation (NYSE:OTIS) and shared the list of top trending stocks. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
