The London Company, an investment management company, released “The London Company Large Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equities experienced a correction in the first quarter following two years of robust performance. The portfolio returned 2.4% (2.3%, net) during the quarter compared to a 4.5% increase for the Russell 1000 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted stocks such as The Home Depot, Inc. (NYSE:HD). The Home Depot, Inc. (NYSE:HD) is a home improvement retailer. The one-month return of The Home Depot, Inc. (NYSE:HD) was 5.50%, and its shares gained 9.72% of their value over the last 52 weeks. On May 13, 2025, The Home Depot, Inc. (NYSE:HD) stock closed at $373.60 per share with a market capitalization of $371.331 billion.

The London Company Large Cap Strategy stated the following regarding The Home Depot, Inc. (NYSE:HD) in its Q1 2025 investor letter:

"Exited: The Home Depot, Inc. (NYSE:HD) - Sale reflects a relatively high valuation (18.6x trailing EBITDA) along with a mixed outlook for consumer spending and housing activity. While the aging housing base and stable housing values are a positive for home improvement spending, we note that we already have exposure via Lowe's and didn't feel the need to own both companies."Is Griffon Corporation (GFF) The Stock With The Most Insider Sales In The Last Quarter?

A family selecting a wood and wire closet organization in a home improvement store.

The Home Depot, Inc. (NYSE:HD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held The Home Depot, Inc. (NYSE:HD) at the end of the fourth quarter which was 82 in the previous quarter. While we acknowledge the potential of The Home Depot, Inc. (NYSE:HD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we covered The Home Depot, Inc. (NYSE:HD) and shared the list of best and worst Dow stocks. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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