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 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. On January 6, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $314.55 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was -2.01%, and its shares gained 60.99% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $3.797 trillion.
Impax US Sustainable Economy Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (Communication Services, Interactive Media & Services), an underweight in the portfolio, marked its strongest quarterly gain in nearly two decades, driven by a mix of AI related services and innovation, strong financial results, and regulatory relief. The company delivered mid-teens revenue growth in the quarter, with cloud growth and significant backlogs demonstrating continued demand for cloud services. The stock also benefitted from the better-than-expected regulatory relief as the courts rejected the harshest remedies laid out by the US Department of Justice.”
Alphabet Inc. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 178 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $100 billion in revenue. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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.
