Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 69.2% and 61.3% on a gross and net basis, since inception through September 30, 2025. It also exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter Qualivian Investment Partners highlighted stocks such as O’Reilly Automotive, Inc. (NASDAQ:ORLY). O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. The one-month return for O’Reilly Automotive, Inc. (NASDAQ:ORLY) was -9.50%, and its shares gained 12.65% over the last 52 weeks. On December 22, 2025, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $91.75 per share, with a market capitalization of $77.623 billion.
Qualivian Investment Partners stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its third quarter 2025 investor letter:
“The S&P 500’s performance in Q3 2025 was primarily driven by two key themes: continued investment and enthusiasm for Artificial Intelligence (AI), and the Federal Reserve’s delivery of its first interest rate cut since 2024, which boosted investor risk appetite. Sector rotation saw Information Technology (especially semiconductors) and Communication Services maintain leadership due to AI-related growth. Also, market breadth improved as small-cap stocks staged a significant rally, though defensive sectors like Consumer Staples and Healthcare generally lagged. Within that context, our top 3 contributors in the quarter were Alphabet (GOOGL), O’Reilly Automotive (ORLY), and TJX Corp. (TJX).
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the third quarter, which was 62 in the previous quarter. While we acknowledge the potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) 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.
