<div id="readability-page-1">The London Company, an investment management company, released “The London Company SMID Cap Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. Following a downturn in Q1, U.S. stocks experienced a double-digit gain in Q2, amid volatility stemming from tariff news. A risk-on rally followed due to a temporary pause in tariff escalations, widespread optimism around enterprise AI, and a healthy earnings outlook. Against this backdrop, the portfolio fell 0.6% (-0.8% net) during the second quarter vs. an 8.6% increase in the Russell 2500 Index. Sector allocation contributed to the fund’s performance in the quarter, while stock selection detracted. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025. In its second quarter 2025 investor letter, The London Company SMID Cap Strategy highlighted stocks such as Cannae Holdings, Inc. (NYSE:CNNE). Cannae Holdings, Inc. (NYSE:CNNE) is a principal investment firm. The one-month return of Cannae Holdings, Inc. (NYSE:CNNE) was 3.93%, and its shares gained 8.51% of their value over the last 52 weeks. On July 28, 2025, Cannae Holdings, Inc. (NYSE:CNNE) stock closed at $21.67 per share, with a market capitalization of $1.36 billion. The London Company SMID Cap Strategy stated the following regarding Cannae Holdings, Inc. (NYSE:CNNE) in its second quarter 2025 investor letter: <blockquote> “Exited: Cannae Holdings, Inc. (NYSE:CNNE) – Underperformed in recent years and was only 1% of the portfolio. Our initial thesis centered on Bill Foley’s ability to create value and the most valuable asset of CNNE was Dun &amp; Bradstreet. That investment has not worked out and CNNE shares have lagged the broader market. We elected to sell the remaining position.” </blockquote> <div id="attachment_1207390"><img src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2023/10/18175918/CNNE-insidermonkey-1697666356458-768x430.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc4NTI4MzIwMCZmaXQ9Y2xpcCZoZWlnaHQ9MjY5JndpZHRoPTQ4MA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="830" height="465" original-src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2023/10/18175918/CNNE-insidermonkey-1697666356458-768x430.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc4NTI4MzIwMCZmaXQ9Y2xpcCZoZWlnaHQ9MjY5JndpZHRoPTQ4MA"/>A financial analyst at a trading desk, monitoring large scale investments in real-time.</div> Cannae Holdings, Inc. (NYSE:CNNE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Cannae Holdings, Inc. (NYSE:CNNE) at the end of the first quarter which was 29 in the previous quarter. While we acknowledge the risk and potential of Cannae Holdings, Inc. (NYSE:CNNE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Cannae Holdings, Inc. (NYSE:CNNE) and that has 10,000% upside potential, check out our report about this cheapest AI stock. In another article, we covered Cannae Holdings, Inc. (NYSE:CNNE) and shared The London Company Small Cap Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. 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CNNE

The London Company SMID Cap Strategy sold its position in Cannae Holdings (CNNE) due to underperformance and a mismatch in investment thesis. The firm noted that CNNE, which constituted only 1% of its portfolio, failed to deliver expected value, particularly from its investment in Dun & Bradstreet. Despite a recent gain in CNNE shares, the company is not favored compared to other AI stocks with higher return potential. The London Company highlighted a shift in focus towards more promising AI investments in its Q2 2025 investor letter.

The London Company SMID Cap Sold Cannae Holdings (CNNE) Due to Thesis Mismatch