Fiduciary Management Inc. released its Q4 2025 investor letter, noting solid long-term performance but lagging indices due to a speculative AI-driven market rally. Equity markets saw strong gains in 2025, fueled by risk-seeking behavior and AI-linked stocks. The firm expressed concerns over stretched valuations and rising capital intensity amid signs of a market bubble.

Hayward Holdings, Inc. (NYSE:HAYW) is highlighted as a small-cap holding by Fiduciary Management Inc., benefiting from normalized demand post-pandemic slowdown. The stock is viewed as undervalued relative to mid-cycle earnings, with strong margins and cash-generation potential. Hayward Holdings’ one-month return was approximately 5.51%, closing at $16.85 per share on January 16, 2026.

Fiduciary Management Inc. outlined Hayward Holdings (NYSE:HAYW) as a leading global pool equipment manufacturer, primarily serving the residential pool market. North America accounts for 85% of sales, with strong pricing power and high margins. The company’s resilient business model is less sensitive to economic cycles, with solid growth potential.

Hayward Holdings, Inc. (NYSE:HAYW) is not among the 30 Most Popular Stocks Among Hedge Funds. While 32 hedge fund portfolios held the stock at the end of Q3, the focus remains on AI stocks for higher returns. Investors seeking undervalued AI stocks should explore other options with potential for significant growth within a shorter time frame.

Read more at Yahoo Finance: Here’s Why Hayward Holdings Inc. (HAYW) Looks Undervalued After the Recent Selloff