<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 Somnigroup International Inc. (NYSE:SGI). Somnigroup International Inc. (NYSE:SGI) is a bedding products manufacturer. The one-month return of Somnigroup International Inc. (NYSE:SGI) was 7.30%, and its shares gained 43.84% of their value over the last 52 weeks. On July 28, 2025, Somnigroup International Inc. (NYSE:SGI) stock closed at $74.78 per share, with a market capitalization of $15.598 billion. The London Company SMID Cap Strategy stated the following regarding Somnigroup International Inc. (NYSE:SGI) in its second quarter 2025 investor letter: <blockquote> “Initiated: Somnigroup International Inc. (NYSE:SGI) – Formerly Tempur Sealy, SGI is the combined company of Tempur Sealy the acquired Mattress Firm. SGI is the clear leader in the bedding industry, and the company is gaining market share while generating robust free cash flow. Strong brand equity, solid management execution, and vertical integration from the acquisition support our investment thesis. Currently, the bedding market is weak with volumes near a 30-year low. Higher mortgage rates and rising home prices may limit unit sales in the short term. Longer term, we believe that an eventual industry rebound, synergies from the acquisition, and greater innovation are keys to the company’s success. We have owned SGI in the past and just sold it from the Small Cap portfolio due to its rising market cap following the acquisition of Mattress Firm.” </blockquote> <div id="attachment_1199633"><img src="https://imageproxy.pbkrs.com/https://imonkey-blog.imgix.net/blog/wp-content/uploads/2023/09/29141235/TPX-insidermonkey-1696011152326-768x430.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/2023/09/29141235/TPX-insidermonkey-1696011152326-768x430.jpg/query-YXV0bz1mb3J0bWF0JmV4cGlyZXM9MTc4NTI4MzIwMCZmaXQ9Y2xpcCZoZWlnaHQ9MjY5JndpZHRoPTQ4MA"/>A satisfied customer sleeping on a comfortable bed, bedding products laid out on the bed.</div> Somnigroup International Inc. (NYSE:SGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Somnigroup International Inc. (NYSE:SGI) at the end of the first quarter, which was 58 in the previous quarter. While we acknowledge the risk and potential of Somnigroup International Inc. (NYSE:SGI) 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 Somnigroup International Inc. (NYSE:SGI) and that has 10,000% upside potential, check out our report about this cheapest AI stock. In another article, we covered Somnigroup International Inc. (NYSE:SGI) 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. This article is originally published at Insider Monkey.Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal! AI is eating the world—and the machines behind it are ravenous. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink. Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking: Where will all of that energy come from? AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse. Even Sam Altman, the founder of OpenAI, issued a stark warning: “The future of AI depends on an energy breakthrough.” Elon Musk was even more blunt: “AI will run out of electricity by next year.” As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity. And that’s where the real opportunity lies… One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike. 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伦敦公司在其 2025 年第二季度投资者信中强调了 Somnigroup International Inc.（SGI），指出尽管当前市场面临挑战，但其在床上用品行业的市场地位依然强劲。SGI 的股票在一个月内上涨了 7.30%，在过去一年中上涨了 43.84%，收盘价为 74.78 美元，市值为 155.98 亿美元。该公司受益于强劲的自由现金流和良好的品牌价值，尽管较高的抵押贷款利率可能会限制短期销售。伦敦公司曾经持有 SGI 的股份，但现在已将重点转向潜在回报更高的人工智能股票

是什么因素使 Somnigroup International Inc (SGI) 成为一个值得考虑的投资选择？