Third Point Management, a New York-based investment advisor, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Third Point returned 1.9% net in the flagship Offshore Fund in Q4 2025. The same trends that drove markets higher in Q4 2025 have extended to early 2026. In an AI-dominated market, capital-intensive businesses and the healthcare sector are gaining attention from investors. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Third Point Management highlighted stocks such as Somnigroup International Inc. (NYSE:SGI). Somnigroup International Inc. (NYSE:SGI) is a US-based mattresses and bedding products manufacturer. On February 6, 2026, Somnigroup International Inc. (NYSE:SGI) stock closed at $96.32 per share. One-month return of Somnigroup International Inc. (NYSE:SGI) was 4.13%, and its shares are up 48.76% over the past twelve months. Somnigroup International Inc. (NYSE:SGI) has a market capitalization of $20.218 billion.
Third Point Management stated the following regarding Somnigroup International Inc. (NYSE:SGI) in its fourth quarter 2025 investor letter:
“Somnigroup International Inc. (NYSE:SGI) is the dominant player in US mattresses and has grown its share of the domestic wholesale market from 27% in 2018 to over 40% in 2024. The company is led by Scott Thompson, who we see as a forward-thinking CEO who has leveraged the business’ scale advantage to take share from an overleveraged set of competitors in a slowing housing market.
Somnigroup International Inc. (NYSE:SGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 61 hedge fund portfolios held Somnigroup International Inc. (NYSE:SGI) at the end of the third quarter, up from 56 in the previous quarter. While we acknowledge the potential of Somnigroup International Inc. (NYSE:SGI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.