- BLDR +1.22%
Heartland Advisors, an investment management company, released its “Heartland Value Plus Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the market’s gains continued to widen, as small value stocks outpaced the Magnificent 7, and the artificial intelligence (AI) trade pulled back in November amid concerns about overinvestment and a reassessment of who will benefit from this disruptive technology. The firm is finding opportunities in firms that were overlooked but appear to be on track for high earnings growth in 2026. The value plus strategy fell 0.10% in the quarter compared to the Russell 2000® Value Index’s 3.26% gain. Stock selection in Information Technology and Real Estate was favorable to its performance, but the stock effect was negative in Health Care, Industrials, and Energy sectors. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Heartland Value Plus Fund highlighted stocks such as Builders FirstSource, Inc. (NYSE:BLDR). Based in Irving, Texas, Builders FirstSource, Inc. (NYSE:BLDR) is a building material, manufactured components, and construction services provider. The one-month return of Builders FirstSource, Inc. (NYSE:BLDR) was 18.56%, and its shares lost 15.29% of their value over the last 52 weeks. On January 12, 2026, Builders FirstSource, Inc. (NYSE:BLDR) stock closed at $124.08 per share, with a market capitalization of $13.721 billion.
Heartland Value Plus Fund stated the following regarding Builders FirstSource, Inc. (NYSE:BLDR) in its fourth quarter 2025 investor letter:
Story Continues"Builders FirstSource, Inc. (NYSE:BLDR) was one of the biggest detractors in the quarter, but one where we have continued faith. BLDR is the largest distributor of lumber and building products materials for contractors and home builders. The company has been a consolidator of smaller regional lumberyards over time and made a push towards increasing value-add building products such as pre-assembled trusses to save builders time and labor on the job site.
Builders FirstSource (BLDR) Jumps 8.7% as Investors Scoop Up "Undervalued" Stocks Builders FirstSource, Inc. (NYSE:BLDR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 72 hedge fund portfolios held Builders FirstSource, Inc. (NYSE:BLDR) at the end of the third quarter, compared to 74 in the previous quarter. While we acknowledge the potential of Builders FirstSource, Inc. (NYSE:BLDR) 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 Builders FirstSource, Inc. (NYSE:BLDR) and shared Tapasya Fund's views on the company. 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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