Pelican Bay Capital Management (PBCM), an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. PBCM Concentrated Value Strategy returned 8.5% in the quarter, compared to a 3.8% return for the Russell 1000 Value Index. The robust performance of AI-related stocks and commodities exposure drove the Strategy’s performance in the quarter. For the full year, the Strategy returned 20.6% compared to 15.9% for the Index. The firm seeks to invest in high-quality companies with a strong balance sheet. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, PBCM highlighted Generac Holdings Inc. (NYSE:GNRC) as among its underperformers. Generac Holdings Inc. (NYSE:GNRC) is leading industrial company that manufactures and distributes energy technology products. On February 6, 2026, Generac Holdings Inc. (NYSE:GNRC) stock closed at $183.53 per share. One-month return of Generac Holdings Inc. (NYSE:GNRC) was 17.20%, and its shares are up 26.51% over the past twelve months. Generac Holdings Inc. (NYSE:GNRC) has a market capitalization of $10.77 billion.
PBCM stated the following regarding Generac Holdings Inc. (NYSE:GNRC) in its fourth quarter 2025 investor letter:
“Generac Holdings Inc. (NYSE:GNRC) and Brown-Forman (BF.B) were also weak in the fourth quarter as both companies gave back some recent gains from Q3. We were especially happy to see GNRC shares reverse course as the stock had reached the top end of our fair value estimate and we had already trimmed our position to a minimum position sizing. Should shares continue to fall this quarter, we would welcome the opportunity to add to our position.”
Generac Holdings Inc. (NYSE:GNRC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 54 hedge fund portfolios held Generac Holdings Inc. (NYSE:GNRC) at the end of the third quarter, up from 51 in the previous quarter. While we acknowledge the potential of Generac Holdings Inc. (NYSE:GNRC) 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.
In another article, we covered Generac Holdings Inc. (NYSE:GNRC) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
