Hotchkis & Wiley, an investment management company, released its fourth-quarter 2025 investor letter for the “Hotchkis & Wiley Global Value Fund.” A copy of the letter can be downloaded here. The Fund outperformed the MSCI World Value Index in the fourth quarter, returning 3.80% vs. 3.34% for the Index. The Fund returned 23.77% YTD compared to 20.79% for the Index. Positive stock selection led the Fund’s performance both in Q4 and for the calendar year. In 2025, stocks outside the US significantly outperformed those within, yet the valuation gap remained largely unchanged, and the Fund continued to be overweight in non-US equities. The firm views the potential of certain software companies to be very attractive, given the current market conditions. Please review the Fund’s top 5 holdings to gain insight into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Hotchkis & Wiley Global Value Fund highlighted Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) as one of its leading contributors. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is a connectivity solutions provider. On January 29, 2026, Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) stock closed at $10.89 per share. One-month return of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) was 14.63%, and its shares gained 45.39% of their value over the 52 weeks. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) has a market capitalization of $37.097 billion.

Hotchkis & Wiley Global Value Fund stated the following regarding Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) in its fourth quarter 2025 investor letter:

"Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is one of the largest vendors of hardware and software needed to operate wireless networks outside China. Ericsson's earnings are below normal as demand for wireless equipment is low in Japan and India. Management is turning around its mismanaged Cloud Software and Services business. We believe valuation is attractive even if Ericsson’s competitors do not lose market share due to political or scale problems, but there is substantial additional upside if these possible outcomes occur. Ericsson’s stock outperformed as the company signaled a pivot towards returning more capital to shareholders and 3Q25 results were modestly better than expected: company gross margins and the Cloud Software and Services business continued to improve."Ericsson (ERIC) Loses 4% on US-EU Tariff Uncertainty

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 16 hedge fund portfolios held Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) at the end of the third quarter, compared to 17 in the previous quarter. While we acknowledge the potential of Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) 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.

Story Continues

In another article, we covered Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) and shared the list of stocks delivering outsized gains. In addition, please check out our hedge fund investor letters Q4 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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