Will Alight (ALIT) be Able to Rebound?

Loomis Sayles, an investment management company, released its “Small Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities delivered strong results in the third quarter, mainly driven by easing tariff concerns, a pro-growth budget passed by the U.S. Congress, and anticipation of the Federal Reserve’s further rate cuts. The fund returned 6.21% in the quarter compared to 12.60% for the Russell 2000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Loomis Sayles Small Cap Value Fund highlighted stocks such as Alight, Inc. (NYSE:ALIT). Alight, Inc. (NYSE:ALIT) is a leading technology-enabled services company. The one-month return of Alight, Inc. (NYSE:ALIT) was -15.45%, and its shares lost 71.20% of their value over the last 52 weeks. On December 24, 2025, Alight, Inc. (NYSE:ALIT) stock closed at $1.97 per share, with a market capitalization of $1.082 billion.

Loomis Sayles Small Cap Value Fund stated the following regarding Alight, Inc. (NYSE:ALIT) in its third quarter 2025 investor letter:

“The market leadership change toward “risk-on” and “low-quality” stocks is common around market pivot points and has continued into the third quarter of the year. Regarding our Fund, stock selection measures trailed the index given the style mismatch with our high quality approach. From an individual stock perspective Haemonetics Corporation, Alight, Inc. (NYSE:ALIT) and Kyndryl Holdings Incorporated detracted the most from performance.

Alight, Inc. (NYSE:ALIT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Alight, Inc. (NYSE:ALIT) at the end of the third quarter, which was 30 in the previous quarter. In Q3 2025, Alight, Inc. (NYSE:ALIT) reported revenue of $533 million compared to $555 million a year earlier. While we acknowledge the potential of Alight, Inc. (NYSE:ALIT) 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 the best short-term AI stock.

In another article, we covered Alight, Inc. (NYSE:ALIT) and shared the list of best technology penny stocks to buy. In addition, please check out our hedge fund investor letters Q3 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.