The London Company released its Q2 2025 investor letter, reporting a 0.6% decline in their portfolio, contrasting the 8.6% gain in the Russell 2500 Index. U.S. stocks rebounded in Q2 amid tariff news, optimism around enterprise AI, and a strong earnings outlook. Review the fund’s top 5 holdings for insights into their selections.

Somnigroup International Inc. (NYSE: SGI) was highlighted in The London Company SMID Cap Strategy’s Q2 2025 letter. The bedding products manufacturer saw a 7.30% one-month return and a 43.84% gain in the last 52 weeks. On July 28, 2025, SGI stock closed at $74.78 per share, with a market cap of $15.598 billion.

The London Company SMID Cap Strategy detailed their investment thesis on Somnigroup International Inc. (NYSE: SGI) in their Q2 2025 investor letter. The company, formed from the merger of Tempur Sealy and Mattress Firm, holds a leading position in the bedding industry. Despite short-term challenges, they believe in its long-term potential and recently sold it from their Small Cap portfolio due to its rising market cap.

Somnigroup International Inc. (NYSE: SGI) is not among the 30 Most Popular Stocks Among Hedge Funds, with 61 hedge fund portfolios holding it in Q1 2025. While acknowledging its potential, The London Company sees greater upside in certain AI stocks with less downside risk. For an undervalued AI stock with potential benefits from tariffs and onshoring, check out their free report on the best short-term AI stock.

Read more at Yahoo Finance: What Makes Somnigroup International Inc (SGI) an Investment Choice?