Group 1 - Construction Partners Inc (NASDAQ:ROAD) is identified as a promising AI stock benefiting from the infrastructure boom linked to the data center revolution [1][2] - The company has achieved mid-teens revenue growth through organic growth and mergers & acquisitions (M&A), with a notable M&A deal in Texas contributing to accelerated revenue growth [2] - Anecdotal evidence suggests significant infrastructure needs, such as a 16-mile temporary road for a new data center in Idaho, highlighting the demand for road construction services [2] Group 2 - Loomis Sayles Small Cap Growth Fund acknowledges the potential of Construction Partners Inc as an investment but suggests that other AI stocks may offer higher returns with limited downside risk [2] - The company operates primarily in the southern and southeastern regions of the United States, focusing on road building and paving services [2]

Group 1: Fund Performance - Loomis Sayles Small Cap Growth Fund returned 9.37% in Q2 2025, underperforming the Russell 2000 Growth Index's 11.97% return due to security selection issues in the information technology and financial sectors [1] - The second quarter began with significant volatility but ended at an all-time high for the S&P 500 [1] Group 2: Company Highlight - Construction Partners, Inc. - Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company focused on constructing and maintaining roadways, with a one-month return of 6.04% and a 52-week gain of 82.15% [2] - As of September 29, 2025, Construction Partners, Inc. had a market capitalization of $7.18 billion, with shares closing at $127.14 [2] - The company achieved a revenue of $779.3 million in fiscal Q3 2025, reflecting a 51% increase compared to fiscal Q3 2024 [4] Group 3: Growth and M&A Activity - Construction Partners, Inc. has experienced mid-teens revenue growth through a combination of organic growth and mergers and acquisitions (M&A) [3] - The company outperformed during the quarter due to a significant M&A deal in Texas and other transactions in existing markets, which accelerated revenue growth and led to higher earnings revisions [3] Group 4: Hedge Fund Interest - At the end of Q2 2025, 27 hedge fund portfolios held shares of Construction Partners, Inc., an increase from 15 in the previous quarter [4]