Core Insights - Fiduciary Management Inc. (FMI) reported a strong performance in the third quarter of 2025, with major stock indices such as the Russell 2000, S&P 500, MSCI EAFE, and MSCI World gaining 12.39%, 8.12%, 5.38%/4.77%, and 7.27% respectively, driven by a Federal Reserve rate cut and enthusiasm for AI and technology stocks [1] - FMI's investment strategy focuses on idiosyncratic dislocations, emphasizing business quality, balance sheet strength, and valuation while maintaining downside protection [1] Company Analysis: OneMain Holdings, Inc. (NYSE:OMF) - OneMain Holdings, Inc. is recognized as a scale leader in nonprime personal lending, with a one-month return of -5.99% and a 52-week gain of 22.70%, closing at $56.53 per share with a market capitalization of $6.72 billion as of October 21, 2025 [2][3] - FMI believes that OneMain Holdings has the potential to be reframed as a high-quality financial institution, supported by organic growth opportunities in personal lending and new areas like credit cards and direct auto lending, projecting mid-single-digit growth with significant capital returns through dividends and buybacks [3] - Despite current macroeconomic pressures affecting OneMain's core consumers and net charge-offs, FMI asserts that the company's income statement and balance sheet provide sufficient protection against adverse outcomes [3] Hedge Fund Interest - OneMain Holdings, Inc. was held by 39 hedge fund portfolios at the end of the second quarter, a slight decrease from 40 in the previous quarter [4] - The company's second-quarter earnings were reported at $1.40 per diluted share, marking a 137% increase from $0.59 per diluted share in the same quarter of 2024 [4] - While FMI acknowledges OneMain's investment potential, it suggests that certain AI stocks may offer greater upside potential with less downside risk [4]