Core Insights - RS Investments' "RS Large Cap Value Strategy" underperformed the Russell 1000 Value Index in Q3 2025, returning 4.47% net compared to the Index's 5.33% [1] - Adverse stock selection in the Consumer Discretionary and Consumer Staples sectors negatively impacted the portfolio's performance [1] Company Focus: Valero Energy Corporation (NYSE:VLO) - Valero Energy Corporation manufactures and distributes petroleum-based and low-carbon liquid transportation fuels, with a one-month return of 2.40% and a 52-week gain of 36.34% [2] - As of October 27, 2025, Valero's stock closed at $174.35 per share, with a market capitalization of $53.178 billion [2] - Valero operates 15 petroleum refineries and 12 ethanol plants, focusing on optimizing return on invested capital and generating strong free cash flow [3] - The company benefits from a lower cost base due to U.S. natural gas and has gained from industry consolidation and the closure of high-cost refineries [3] - RS Investments continues to hold Valero shares, anticipating further outperformance [3] Hedge Fund Interest - Valero Energy Corporation was held by 55 hedge fund portfolios at the end of Q2 2025, unchanged from the previous quarter [4] - While Valero is recognized for its potential, certain AI stocks are viewed as having greater upside potential and lower downside risk [4]