Should You Hold Lamb Weston Holdings (LW)?
Meridian Funds, managed by ArrowMark Partners, released its fourth-quarter 2025 investor letter for “Meridian Hedged Equity Fund”. A copy of the letter can be downloaded here. U.S. equity markets experienced a quarter supported by optimism about potential monetary easing and caution regarding economic growth and valuations. Early gains were driven by strong AI-related earnings and the US Federal Reserve’s rate cut in October, which improved expectations for financial conditions. However, market sentiment cooled later in the quarter. Despite this moderation, the quarter contributed positively to robust annual results. In Q4 2025, the Fund gained 0.08% compared to the S&P 500 Index’s 2.66% return and its secondary benchmark, the CBOE S&P 500 BuyWrite Index’s 6.53% return. As the market heads into 2026, the firm is closely watching factors that may affect market returns, including monetary policy and the sustainability of AI investments in the face of high valuations. In this environment, the firm continues its disciplined, bottom-up fundamental research and prudent risk management. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Meridian Hedged Equity Fund highlighted Lamb Weston Holdings, Inc. (NYSE:LW) as a major performance detractor. Lamb Weston Holdings, Inc. (NYSE:LW) is a leading producer and supplier of frozen potato products. On February 13, 2026, Lamb Weston Holdings, Inc. (NYSE:LW) stock closed at $49.82 per share. One-month return of Lamb Weston Holdings, Inc. (NYSE:LW) was 9.81%, and its shares are down 18.61% over the past twelve months. Lamb Weston Holdings, Inc. (NYSE:LW) has a market capitalization of $6.943 billion.
Meridian Hedged Equity Fund stated the following regarding Lamb Weston Holdings, Inc. (NYSE:LW) in its fourth quarter 2025 investor letter:
"Lamb Weston Holdings, Inc. (NYSE:LW) is the leading producer of frozen potato products in North America, serving both domestic and international markets. The company benefits from a strong brand in the frozen food sector and serves a steadily growing addressable market. Although the company reported better than-expected earnings during the quarter, the stock declined as investors reacted to the lack of upside in fiscal year guidance and declining visibility in international segments. Despite near-term pressure, we remain confident in the company’s operational efficiency and focus on cost management."
Lamb Weston Holdings, Inc. (NYSE:LW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Lamb Weston Holdings, Inc. (NYSE:LW) at the end of the third quarter, up from 45 in the previous quarter. While we acknowledge the potential of Lamb Weston Holdings, Inc. (NYSE:LW) 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 thebest short-term AI stock.
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