White Brook Capital Partners, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The US economy demonstrated resilience in the quarter, with growth exceeding expectations, driven by high-end consumer spending and significant investments in artificial intelligence. However, softening labor markets may allow for potential cuts to short-term interest rates later this year. White Brooke Capital’s Small Cap Absolute Growth Strategy model portfolio performed well in its first year, exceeding expectations. Value-oriented stocks are underperforming. The All-Cap Portfolio of White Brook Capital shifted to growth companies but remains overweight in value, leading to disappointing performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, White Brook Capital Partners highlighted stocks such as Tile Shop Holdings, Inc. (NASDAQ:TTSH). Tile Shop Holdings, Inc. (NASDAQ:TTSH) is a US-based specialty retailer of man-made and natural stone tiles, setting and maintenance materials, and related accessories. The one-month return for Tile Shop Holdings, Inc. (NASDAQ:TTSH) was 4.49%, and its shares lost 3.98% over the last 52 weeks. On December 04, 2025, Tile Shop Holdings, Inc. (NASDAQ:TTSH) stock closed at $6.52 per share, with a market capitalization of $291.845 million.
White Brook Capital Partners stated the following regarding Tile Shop Holdings, Inc. (NASDAQ:TTSH) in its third quarter 2025 investor letter:
“Pursuant to the quarter’s close, Tile Shop Holdings, Inc. (NASDAQ:TTSH) proposed delisting its shares at a price higher than the close at quarter end. The stated rationale is that the company is not getting credit for its assets as a public company. We agree with the rationale, but find the proposed price to be significantly below our estimate of the company’s intrinsic value. We believe that the public needs to see more home building and renovation activity to realize that value. We sold into the news and hope to re-enter if the delisting maneuver is defeated.”
Tile Shop Holdings, Inc. (NASDAQ:TTSH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Tile Shop Holdings, Inc. (NASDAQ:TTSH) at the end of the third quarter, which was 5 in the previous quarter. While we acknowledge the potential of Tile Shop Holdings, Inc. (NASDAQ:TTSH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
