Core Viewpoint - The London Company Large Cap Strategy's fourth-quarter 2025 investor letter indicates a mixed market environment, with US equities showing higher returns but facing challenges from volatility and concentrated market leadership. The portfolio aims for long-term wealth creation while managing downside risk [1]. Group 1: Market Performance - In Q4 2025, US equities experienced a 2.4% increase in the Russell 3000 Index, marking the third consecutive quarter of higher returns [1]. - The London Company Large Cap portfolio returned 0.4% (0.2% net), underperforming compared to the 2.4% increase in the Russell 1000 Index [1]. Group 2: Norfolk Southern Corporation (NSC) Overview - Norfolk Southern Corporation (NYSE:NSC) specializes in rail transportation and has a market capitalization of $70.99 billion [2]. - As of February 17, 2026, NSC stock closed at $316.12 per share, with a one-month return of 9.35% and a 26.93% increase over the past twelve months [2]. Group 3: Investment Positioning - The London Company increased its position in Norfolk Southern Corporation after a share pullback, viewing it as trading at a discount relative to a pending deal with UNP [3]. - Despite softer-than-expected recent earnings, NSC is showing signs of improved execution, and the chairman's recent share purchases are seen as a positive indicator of confidence in the business [3]. Group 4: Hedge Fund Interest - Norfolk Southern Corporation is held by 81 hedge fund portfolios at the end of Q3 2025, an increase from 71 in the previous quarter [4]. - While acknowledging NSC's potential, the company suggests that certain AI stocks may offer greater upside potential with less downside risk [4].