The London Company, an investment management company, released its “Income Equity Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund’s Income Equity Portfolio declined 1.4% gross (-1.6% net) in the fourth quarter of 2025, underperforming the Russell 1000 Value Index, which gained 3.8%, as stock selection weighed on relative performance despite supportive sector exposure. U.S. equities extended their rally, with the Russell 3000 Index rising 2.4% and the S&P 500 posting similar gains, supported by strong earnings growth, additional Federal Reserve rate cuts, and easing trade tensions, though markets faced headwinds from softening labor markets, AI investment scrutiny, and a prolonged government shutdown. For the full year, the portfolio delivered +14.4% gross (+13.5% net) versus +15.9% for the benchmark, finishing in line with its long-term upside capture objectives despite a challenging backdrop for Quality, Yield, and Low Volatility factors. Management noted that value factors led returns during the quarter, while the portfolio’s lack of direct bank exposure and its tilt toward Quality and Yield-oriented stocks acted as headwinds in a market environment that favored higher-beta and more cyclically sensitive segments. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, The London Company Income Equity Strategy highlighted stocks like Cisco Systems, Inc. (NASDAQ:CSCO). Cisco Systems, Inc. (NASDAQ:CSCO) is a networking technology company that provides hardware, software, and cybersecurity solutions enabling global internet and enterprise connectivity. The one-month return of Cisco Systems, Inc. (NASDAQ:CSCO) was 4.13% while its shares traded between $52.11 and $88.19 over the last 52 weeks. On March 11, 2026, Cisco Systems, Inc. (NASDAQ:CSCO) stock closed at approximately $78.10 per share, with a market capitalization of about $309.00 billion.
The London Company Income Equity Strategy stated the following regarding Cisco Systems, Inc. (NASDAQ:CSCO) in its Q4 2025 investor letter:
Cisco Systems, Inc. (NASDAQ:CSCO) – CSCO was a top performer this quarter following a beat and raise, driven by strong Networking growth and accelerating AI momentum. Strength in core Networking more than offsets near-term weakness in Security, which is transitioning toward a more recurring revenue model. Early signs of a campus refresh cycle were also positive. We think that the company’s leadership position in Networking, product breadth, and balance sheet flexibility will continue to drive growth and shareholder value over time.
