Strong Performance Lifted Graham Holdings (GHC) in Q3

GHC +0.14%

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 2.03% in the third quarter, compared with the Russell 3000’s 8.18% and the Russell 2000’s 12.39%. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks such as Graham Holdings Company (NYSE:GHC). Graham Holdings Company (NYSE:GHC) is a diversified holding company. The one-month return of Graham Holdings Company (NYSE:GHC) was 7.24%, and its shares gained 17.07% of their value over the last 52 weeks. On December 1, 2025, Graham Holdings Company (NYSE:GHC) stock closed at $1,108.03 per share, with a market capitalization of $4.834 billion.

Longleaf Partners Small-Cap Fund stated the following regarding Graham Holdings Company (NYSE:GHC) in its third quarter 2025 investor letter:

"Graham Holdings Company (NYSE:GHC) – Diversified conglomerate GHC continued its strong performance this year with another set of solid results that grew our value-per-share in the mid-single-digit percentage range. We do not have a lot to add since our previous note and our P/V Podcast with CEO Tim O’Shaughnessy earlier this year. It is encouraging that broadcast television M&A has increased this year, which could give GHC a unique opportunity to grow and realize its value per share in this important segment of its business."

Graham Holdings Company (NYSE:GHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Graham Holdings Company (NYSE:GHC) at the end of the third quarter, which was 20 in the previous quarter. While we acknowledge the potential of Graham Holdings Company (NYSE:GHC) 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.

In another article, we covered Graham Holdings Company (NYSE:GHC) and shared The London Company Small Cap Strategy's views on the company. In addition, please check out our hedge fund investor letters Q3 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.