Rewey Asset Management, an investment management company, released its “RAM Smid Composite” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was favorable for small-cap stocks. The composite increased 10.70% in the quarter, outperforming the 8.17% gain for the benchmark Russell 2500 Value Total Return Index. Year-to-date, the composite returned 9.29% vs. 9.29% for the benchmark. Market capitalization likely contributed to performance in the third quarter of 2025. Smaller market cap indices in the Russell family outperformed their larger counterparts. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, RAM Smid Composite highlighted stocks such as Kyndryl Holdings, Inc. (NYSE:KD). Kyndryl Holdings, Inc. (NYSE:KD) is a technology services company and IT infrastructure services provider. The one-month return of Kyndryl Holdings, Inc. (NYSE:KD) was -11.73%, and its shares gained 12.31% of their value over the last 52 weeks. On October 13, 2025, Kyndryl Holdings, Inc. (NYSE:KD) stock closed at $28.00 per share, with a market capitalization of $6.472 billion.
RAM Smid Composite stated the following regarding Kyndryl Holdings, Inc. (NYSE:KD) in its third quarter 2025 investor letter:
“Kyndryl Holdings, Inc. (NYSE:KD) was our weakest performer in 3Q25, down 28.43%, as its FY1Q26 report showed that its revenues came in a bit below street expectations. We think the decline is an overreaction, as Kyndryl reiterated that it still expects to post positive revenue growth for Fiscal 2026, and to deliver sustained growth over at least the next several years. We maintain our optimism on KD and see opportunity in the shares at current levels.”
Kyndryl Holdings, Inc. (NYSE:KD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 36 hedge fund portfolios held Kyndryl Holdings, Inc. (NYSE:KD) at the end of the second quarter, compared to 39 in the previous quarter. While we acknowledge the potential of Kyndryl Holdings, Inc. (NYSE:KD) 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 Kyndryl Holdings, Inc. (NYSE:KD) and shared the list of best performing mid cap tech stocks in the last 3 years. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.
