Rothschild & Co Wealth Management, an investment management company, released its LongRun Equity strategy third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm is a committed long-term business owner, focused on a portfolio of high-quality companies. The strategy returned +3.9 % (in EUR, unhedged) in the third quarter, underperforming its benchmark’s 7.5% return. Since its inception, the strategy has delivered an annualized return of 10% compared to 11% for the global equities. The firm’s selection of highly profitable quality companies was not rewarded by the market, which instead focused on riskier, growth-focused, and often unprofitable companies. In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.
In its third-quarter 2025 investor letter, Rothschild & Co LongRun Equity highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOG) was -1.44%, and its shares gained 59.78% over the last 52 weeks. On December 24, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $315.67 per share, with a market capitalization of $3.811 trillion.
Rothschild & Co LongRun Equity stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:
“As throughout the year to date, our investment style – and therefore our sector allocation – was the main factor behind the underperformance. Our preference for highly profitable quality companies was not rewarded by the market, which instead focused on riskier, growth-oriented and often unprofitable companies. This dynamic continued into the third quarter. After adjusting for broader style and sector influences (factor effects), one is left with the effects of performance that are idiosyncratic. This element attributed positively to performance in the period, as it has throughout the year. One example is Alphabet Inc. (NASDAQ:GOOG): the company benefited from a favourable development in the US Department of Justice’s antitrust case. The judge’s remedies in US vs Alphabet appear largely benign, maintaining the status quo and providing clarity for the company. Google’s payments to partners such as Apple are unlikely to change significantly, though they could trend lower, and the data-sharing clauses seem limited, resembling Google’s existing agreements. The focus now shifts to Google’s continued product investment and the rollout of new AI capabilities across its ecosystem, including Google Cloud, YouTube, Gmail, Shopping, and other segments.”
