Alphabet’s AI Push Drives Fund’s 0.4% Q4 Return vs 2.4% Index
In Q4 2025 Alphabet contributed to a 0.4% return (0.2% net) for The London Company Large Cap Strategy versus a 2.4% gain in the Russell 1000. On February 17 Alphabet closed at $302.82 with a $3.663 trillion market cap, up 61.82% over 52 weeks but down 7.78% in one month.
1. Q4 2025 Portfolio Performance
In the fourth quarter of 2025 The London Company Large Cap Strategy posted a 0.4% return (0.2% net) versus a 2.4% increase in the Russell 1000. Concentrated market leadership and elevated volatility factors were cited as primary headwinds to the strategy’s relative performance.
2. AI-Driven Growth and Segment Margins
Alphabet delivered broad-based growth across Search, YouTube and Cloud, with AI enhancements boosting search utility and advertising monetization. Cloud margins reached new highs as management balanced disciplined cost controls with stepped-up investment in AI capabilities to reinforce long-term returns.
3. Market Valuation and Hedge Fund Interest
On February 17 Alphabet closed at $302.82, valuing the company at $3.663 trillion. Shares have climbed 61.82% over the past 52 weeks but slipped 7.78% in the last month, while hedge fund holdings rose to 186 from 178 quarter over quarter and annual revenue topped $400 billion for the first time.