London Company Large Cap Strategy Views NewMarket Corporation (NEU) as a Strong Investment Despite Near-Term Pressure

1 month ago 21

Soumya Eswaran

Wed, February 18, 2026 astatine 7:58 AM CST 3 min read

The London Company, an concern absorption company, released “The London Company Large Cap Strategy” fourth-quarter 2025 capitalist letter. In Q4 2025, US equities ended the 3rd consecutive 4th of higher returns, with the Russell 3000 Index rising 2.4%. A transcript of the missive tin beryllium downloaded here. The marketplace highlighted however investors balanced the optimism connected net maturation and concerns regarding AI returns and cooling macroeconomic factors. Against this backdrop The London Company Large Cap portfolio returned 0.4% (0.2% net) compared to a 2.4% summation successful the Russell 1000 Index. Volatility factors and concentrated marketplace enactment were notable headwinds to the Strategy’s show successful the quarter. Heading into 2026, the economical and argumentation backdrop presents a blend of assurance and doubt. Against this backdrop, the portfolio remains unchangeable and believes it tin assistance investors successful semipermanent wealthiness instauration portion managing downside risk. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, The London Company Large Cap Strategy highlighted stocks specified arsenic NewMarket Corporation (NYSE:NEU). Headquartered successful Richmond, Virginia, NewMarket Corporation (NYSE:NEU) manufactures and distributes petroleum additives. On February 17, 2026, NewMarket Corporation (NYSE:NEU) banal closed astatine $599.80 per share. One-month instrumentality of NewMarket Corporation (NYSE:NEU) was 6.95%, and its shares are up 10.12% implicit the past 12 months. NewMarket Corporation (NYSE:NEU) has a marketplace capitalization of $5.637 billion.

The London Company Large Cap Strategy stated the pursuing regarding NewMarket Corporation (NYSE:NEU) successful its 4th fourth 2025 capitalist letter:

"NewMarket Corporation (NYSE:NEU)– NEU was a weaker performer arsenic a softer planetary situation pressured Petroleum Additives volumes and margins and the Specialty Materials concern had lumpy demand, which weighed connected results. Lower lipid prices reduced operating leverage and drove an antithetic restructuring complaint arsenic manufacture capableness increased. Despite near-term pressure, we proceed to presumption NEU arsenic a beardown concern with disciplined superior allocation, equilibrium expanse flexibility, and beardown currency travel generation."

NewMarket Corporation (NYSE:NEU) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge money portfolios held NewMarket Corporation (NYSE:NEU) astatine the extremity of the 3rd quarter, compared to 22 successful the erstwhile quarter. While we admit the imaginable of NewMarket Corporation (NYSE:NEU) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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