Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q3 2025, the portfolio lagged behind the Russell 1000. Similar to the second quarter, the US equity markets favored a risk-on approach, benefiting high-risk, high-momentum, and lower-quality factors. Although the portfolio’s focus on relatively modest, lower-risk, and high-quality factors contributed to the underperformance, the fund (Institutional Class) returned 7.33% in Q3 compared to 7.99% for the Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its third-quarter 2025 investor letter, Impax US Sustainable Economy Fund highlighted stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) is a leading technology company that designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was -16.76%, and its shares gained 49.91% of their value over the last 52 weeks. On January 6, 2026, Broadcom Inc. (NASDAQ:AVGO) stock closed at $343.77 per share, with a market capitalization of $1.63 trillion.
Impax US Sustainable Economy Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its third quarter 2025 investor letter:
“Broadcom Inc. (NASDAQ:AVGO) (Information Technology, Semiconductors) performed well in the period, driven by record earnings and surging demand for its AI semiconductor solutions. Investor confidence was boosted by Broadcom’s leadership in custom AI accelerators and its successful integration of VMware. Bullish forward guidance and the company’s ability to outpace analyst expectations in the recent past helped sustain positive momentum throughout the quarter. The stock is owned primarily for its exposure to themes such as Resource Efficiency, Digital Infrastructure opportunities and Meeting Basic Needs given chips are the backbone to a variety of every day essential activities.”
Broadcom Inc. (NASDAQ:AVGO) is in the 12th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 183 hedge fund portfolios held Broadcom Inc. (NASDAQ:AVGO) at the end of the third quarter, which was 156 in the previous quarter. While we acknowledge the potential of Broadcom Inc. (NASDAQ:AVGO) 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.
