Loomis Sayles, an investment management company, released its “Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities delivered strong results in the third quarter, mainly driven by easing tariff concerns, a pro-growth budget passed by the U.S. Congress, and anticipation of the Federal Reserve’s further rate cuts. The fund returned 6.21% in the quarter compared to 12.60% for the Russell 2000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as Kyndryl Holdings, Inc. (NYSE:KD). Kyndryl Holdings, Inc. (NYSE:KD) is a technology services company and IT infrastructure services provider. The one-month return of Kyndryl Holdings, Inc. (NYSE:KD) was 7.23%, and its shares lost 22.03% of their value over the last 52 weeks. On December 24, 2025, Kyndryl Holdings, Inc. (NYSE:KD) stock closed at $27.28 per share, with a market capitalization of $6.306 billion.
Loomis Sayles Small Cap Value Fund stated the following regarding Kyndryl Holdings, Inc. (NYSE:KD) in its third quarter 2025 investor letter:
“The market leadership change toward “risk-on” and “low-quality” stocks is common around market pivot points and has continued into the third quarter of the year. Regarding our Fund, stock selection measures trailed the index given the style mismatch with our high quality approach. From an individual stock perspective Haemonetics Corporation, Alight, Inc. and Kyndryl Holdings, Inc. (NYSE:KD) detracted the most from performance.
Kyndryl Holdings, Inc. (NYSE:KD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held Kyndryl Holdings, Inc. (NYSE:KD) at the end of the third quarter, compared to 36 in the previous quarter. In second quarter of fiscal 2026, Kyndryl Holdings, Inc. (NYSE:KD) reported revenue of $3.7 billion, marking a decrease of 1% from the prior year quarter on a reported basis and 3.7% in constant currency. While we acknowledge the potential of Kyndryl Holdings, Inc. (NYSE:KD) 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.
