London Company Large Cap Strategy Views NewMarket Corporation (NEU) as a Strong Investment Despite Near-Term Pressure

Core Insights - The London Company Large Cap Strategy reported a 0.4% return in Q4 2025, underperforming the Russell 1000 Index which rose by 2.4% [1] - The investment environment is characterized by a mix of optimism regarding earnings growth and concerns over AI returns and macroeconomic factors [1] - The portfolio aims to support long-term wealth creation while managing downside risk as it navigates a complex economic landscape heading into 2026 [1] Company-Specific Insights - NewMarket Corporation (NYSE:NEU) is highlighted as a weaker performer due to a softer global environment affecting petroleum additives volumes and margins [3] - The stock closed at $599.80 on February 17, 2026, with a one-month return of 6.95% and a twelve-month increase of 10.12% [2] - NewMarket Corporation has a market capitalization of $5.637 billion [2] - Despite near-term pressures, the company is viewed as strong due to disciplined capital allocation, balance sheet flexibility, and strong cash flow generation [3] Hedge Fund Interest - NewMarket Corporation is not among the 30 most popular stocks among hedge funds, with 21 hedge fund portfolios holding the stock at the end of Q3 2025, down from 22 in the previous quarter [5] - The company is acknowledged for its investment potential, but certain AI stocks are considered to offer greater upside potential with less downside risk [5]