Bretton Capital Management, an investment management company, has issued a fourth quarter 2025 investor letter for the ‘Bretton Fund’. A copy of the letter can be downloaded here. Britton’s fund returned 1.44% in Q4 2025, compared to 2.66% for the S&P 500 index. In 2025, the fund returned 11.58% compared to 17.88% for the index. Although the market fluctuates daily between excitement and concern about a possible bubble in artificial intelligence, the company as a whole market is not in the bubble area at this stage but modestly high. Given the fund’s long-term perspective, it is acceptable to reduce the other speculative elements of the AI boom, which may resemble a bubble, even if it leads to a temporary pause during a strong market phase. The fund focuses on value sectors that will provide good returns over the long term. Please review the fund’s top five holdings for 2025 to gain insight into their key picks.
In a 2025 Q4 investor letter, Britton Fund highlighted stocks like AutoZone, Inc. (NYSE:AZO). AutoZone Inc. (NYSE:AZO) is a retailer of automotive replacement parts and accessories. AutoZone Inc. (NYSE:AZO)’s one-month return was -2.24%, and its shares gained 2.29% in their value over the past 52 weeks. On March 3, 2026, AutoZone, Inc. (NYSE: AZO ) stock closed at $3,637.17 per share, with a market capitalization of $60.496 billion.
Brayton Fund raised AutoZone, Inc. in its fourth quarter 2025 investor letter. (NYSE:AZO) said the following:
“He was the biggest opponent AutoZone, Inc. (NYSE: AZO ), which reported disappointing margins from higher product costs, is taking 1.5% from the fund. AutoZone had a tough time navigating the tariff minefield, with earnings per share falling 1% and the stock returning 6% less. The auto parts retail market is relatively consolidated, and the industry is always going through price increases, so we believe this is a short-term issue as it will take time for the higher retail prices to pass through to their income statement.”
AutoZone, Inc. (NYSE: AZO ) is not on our list of the 40 most popular stocks among hedge funds. According to our database, 74 hedge fund portfolios held AutoZone, Inc. at the end of the fourth quarter. (NYSE: AZO ) held, compared to 60 in the previous quarter. In the first quarter of fiscal year 2026, AutoZone, Inc. (NYSE:AZO) reported revenue of $4.6 billion, representing an 8.2% increase over Q1 2025. While we are investing in AutoZone, Inc. (NYSE:AZO) Potentially, we believe that certain AI stocks offer higher potential risk reduction. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
