A Look Into Some Of The Top 10 Stocks Henriot Identified In 2025

As 2025 draws to a close, I find myself almost pinching my arm when I look back at the year we’ve had. It’s not just that it was a strong year in terms of returns (though it certainly was), it’s that we proved our approach in spades. I’ve always believed that a rigorous Quant strategy, grounded in deep research, can consistently uncover opportunities others miss. This year, that conviction was validated. We identified a number of big winners early, often before they hit most radars, and rode them to remarkable gains.

From the start, my focus was on finding high-conviction ideas where data and fundamentals pointed in the same direction. Many of those ideas centered around the picks and shovels of the ongoing AI revolution. These are the less flashy companies providing essential infrastructure for trends like AI and cloud computing. By letting the quant models guide me to strong signals, I was able to build positions in several companies that went on to crush it this year. Allow me to highlight 10 standout stock picks that we rated this year.

Credo Technology (CRDO)- This Silicon Valley networking chip maker soared +159.65% in 2025, and it was one of our standout performers. I spotted Credo’s potential early on when our models flagged its robust growth in high-speed data center gear. Back in the spring, I was pounding the table on this name, convinced that surging demand for AI and cloud connectivity would drive it higher. Sure enough, Credo’s revenue trajectory and market sentiment only grew stronger each quarter. Watching the stock more than double validated our conviction and demonstrated how getting in early (and staying patient) can pay off tremendously. Read full article: Credo Has Entered A High Growth Phase

Astera Labs (ALAB) -Another big win was Astera Labs, up +136.41% this year. ALAB is a newer face on the public markets, a cutting-edge semiconductor company specializing in connectivity solutions for next-gen AI and cloud systems. We took a strong interest right after its IPO, as my quant screens loved its combination of revenue growth and technological moat in an AI-driven niche. It wasn’t a household name by any means, but that was exactly the opportunity, an under-the-radar innovator solving critical bottlenecks in data centers. Our early confidence was rewarded as the stock surged on the back of successive earnings beats and growing recognition that Astera’s chips are indispensable for the AI connectivity boom. Read full article: Astera Labs: Positioned To Capitalize On Next-Gen AI Connectivity Boom

Micron Technology (MU) – Even established giants can be mispriced, and Micron’s +136.58% rally in 2025 was a prime example. At the start of the year, sentiment around this memory chip maker was lukewarm, the industry was coming off a down cycle, and many investors were still cautious. With AI mega-trends driving skyrocketing demand for high-performance memory, I felt Micron was positioned for a sharp rebound. By mid-year, it became clear the memory glut was easing and prices were firming up, and Micron’s stock took off. Riding that wave has been gratifying, not just for the hefty gain, but for the lesson that contrarian bets on solid fundamentals can really pay off. Read full Article: Micron Technology: Gearing for AI market with HBM4

Tower Semiconductor (TSEM) – This Israel-based specialty foundry was one of our more dramatic winners, climbing +254.14%. TSEM had been overlooked after a failed merger left it trading at a deep discount. Early in 2025, our models picked up improving trends, strong order flow and even a hint of regulatory relief (tariff exemptions) that could boost margins. I initiated a position when the stock was still languishing, convinced that the market was unduly pessimistic. Over the year, that thesis played out in spades: Tower delivered robust earnings, announced strategic partnerships, and reminded everyone why a niche chip manufacturer can’t be ignored in a supply-constrained world. The stock’s more-than-triple jump still amazes me when I see it on paper. Read full Article: Tower Semiconductor: Tariff Exemptions Arrive Just In Time

Corning (GLW) – Corning isn’t a trendy name on FinTwit, but this 172-year-old innovator quietly notched a +103.48% gain for us. Best known for its Gorilla Glass, GLW also happens to make the fiber-optic and glass materials that underpin modern networks and devices. Early in the year I wrote that “AI is here, and it needs Corning,” reflecting my view that booming demand for optical fiber (for data centers and 5G) and specialty glass would drive a renaissance for this company. That view was vindicated as the year unfolded: Corning reported steady growth and upbeat guidance, and investors rediscovered its value. In a market often obsessed with the next big thing, GLW proved that steady fundamentals + a foot in the right secular trends can deliver a double in stock price. Read Full Article here

Karooooo Ltd. (KARO) – Not every pick was a triple-digit moonshot, and I’m fine with that. Case in point: Karooooo, which gained a more modest +20.59%. This Singapore-based company (behind the Cartrack platform) is in the business of IoT and fleet management solutions, a steady, cash-generative operation that doesn’t grab headlines like an AI startup might. I named Karooooo an “underestimated” gem earlier in the year because our quant models saw a rare financial profile: consistent growth, high return on equity, and strong free cash flows, all at a bargain valuation. While +20% might seem small next to some of our other winners, it handily outperformed the broader market’s return. More importantly, Karooooo did exactly what I hoped, it provided stability and diversification, proving that not every big contribution to the portfolio has to come from a high-flyer. Read Full Article: Karooooo Is Scaling Efficiently In An Underpenetrated Market

GigaCloud Technology (GCT) – On the other end of the spectrum, we had GigaCloud, which skyrocketed +121.55%. This was a classic case of a misunderstood small-cap getting its groove back. GigaCloud operates a global B2B e-commerce marketplace, and earlier in 2025 its stock was beaten down, investor sentiment was sour thanks to broader China market jitters and post-SPAC skepticism. But my research told a different story: GCT was financially solid, with strong growth and a dirt-cheap valuation. Our quant screens lit up green on GigaCloud, and we started accumulating shares. The stock’s doubling-plus came as the company continued to post solid results and the market finally woke up to the disconnect between price and value. It’s a great reminder that in the smaller-cap space, perception can lag reality by a wide margin and that’s exactly where a nimble, research-driven investor can clean up. Read Full Article: GigaCloud Technology: Valuation Is Cheap

CommScope (COMM) – CommScope was another name that not many were talking about, but it quietly became a +149.11% success for us. This is a telecom and network infrastructure provider – they make everything from fiber cables to antennas, basically the plumbing of the internet. Coming into the year, COMM was burdened with debt and skepticism; plenty of analysts had written it off as a legacy player with too many problems. But my quant model started picking up something different: improving earnings trends, insider buying, and an overall momentum shift that pointed to a company on the mend. We dug in and realized that the market was underestimating COMM’s role in the AI era – after all, all those new AI servers and data centers need a ton of networking gear and high-bandwidth cables, which CommScope provides. We went against the grain and took a position. Over 2025, as the company delivered earnings surprises and debt reduction progress, the stock just took off. It went from a contrarian bet to a market darling, and it was extremely satisfying to have been there early before the crowd returned. Read Full Article: CommScope: Better Days To Come Post CCS Divestiture

Seagate Technology (STX) – 2025 was also the year we saw the revival of data storage stocks. Seagate, one of the world’s leading makers of hard drives, jumped +120.95% for us. Here again, it was a story of early conviction in a turnaround. The memory and storage sector had been in a funk, but I believed that was about to change, partly because of new technology on the horizon (Seagate’s HAMR drives, a next-gen storage tech) and partly because the explosion of data (much of it driven by AI and cloud) was bound to stoke demand for high-capacity storage. We made Seagate a high-conviction holding when it was still out of favor. As the year went on, supply gluts eased and the narrative flipped: suddenly everyone was talking about AI needing more storage and about Seagate’s upcoming tech advantage. The stock responded accordingly. The lesson I take from Seagate’s climb is that positioning ahead of the cycle, and having the patience to wait, can transform a stodgy old hardware name into a wealth creator. Read Full Article: Seagate: HAMR Will Capture The Mass Capacity Storage Boom

Western Digital (WDC) – Last but certainly not least, Western Digital surged +168.83%, capping off our list of big winners. Western Digital, like Seagate, had been left for dead by many at the start of 2025. It was coming off a brutal downturn in flash memory and disk drive pricing. But my quant analysis signaled that the worst was likely over – the company’s financials were set to improve and industry conditions were turning. I also saw Western Digital as a deep value play with huge leverage to the same trends benefiting Seagate: a rebound in storage demand and new tech (Western Digital is also working on advanced drive technologies). So I dove in and started buying when the news was still gloomy. Fast forward to year-end, and WDC has nearly tripled. The company’s earnings momentum returned, and talks of restructuring even put M&A speculation in the air. For me, Western Digital’s comeback underscores why I do this: finding diamonds in the rough through analysis, having the conviction to act, and then just holding on through the volatility. Read Full Article: Western Digital: HAMR Commercialization Is Not Too Far

What's Beyond The Portfolio?

It wasn’t just a year of stock picking wins; 2025 was a year of tremendous progress for Henriot as a whole. On a personal level, I grew a lot as a fund manager, sticking to my process through thick and thin, and learning from both the victories and the inevitable hiccups along the way. We sharpened our in-house quant research framework even further, integrating new data sources and refining our models to stay ahead of an ever-changing market. The results speak loud and clear, but they also show up in something less tangible: our consistency. Month after month, quarter after quarter, we applied the same disciplined approach, and it’s been heartening to see that consistency translate into real alpha.

One of the highlights of the year was launching the alpha Brief Portfolio (aBP). This initiative was born from a simple idea, to bridge the informational gap for investors by sharing our best ideas in a concise, actionable format. Too often in finance, good insights get lost in noise or jargon. With aBP, I set out to offer signal without the noise. Each month we put out a couple of high-conviction stock ideas with clear theses, risks, and updates, almost like a mini research brief you can actually use. The response has been amazing. It’s been gratifying to see fellow investors, both professional and retail, use the alpha Brief Portfolio to discover opportunities they might have overlooked. In many ways, aBP has become a two-way bridge, it lets me share our quant-driven insights more broadly, and it has helped build a community of like-minded folks who believe in evidence-based investing. That kind of engagement and knowledge-sharing is exactly why I got into the high finance space in the first place.

Perhaps the most exciting development, though, is how all of this has paved the way for our next chapter. After proving our strategy and growing confidence in our process, we are now preparing to manage external capital professionally. We’re getting ready to open the fund to outside investors. This is a huge milestone for me and for our team. Up until now, we’ve been running on proprietary capital, which has been the perfect testing ground nothing sharpens one’s discipline like having skin in the game. Now, with a strong track record behind us and a solid infrastructure in place, I feel we’re ready to take on the responsibility of managing others’ money. We’ve spent the year making sure all the pieces are in order from compliance to risk management systems, so that when we do start handling external funds, we can hit the ground running with the same focus and integrity that got us here. I won’t lie, the prospect of welcoming new investors is equal parts exhilarating and humbling. It’s the kind of “graduation” moment that we’ve been working toward for years, and I couldn’t be more optimistic about what comes next.

As we turn toward 2026, I’m carrying forward the core lesson of this year: stick to the process. Markets will do what they do, there will be surprises, volatility, maybe even a curveball or two ,but a sound strategy and disciplined execution win out over time. I’m incredibly proud of what we achieved in 2025, and I’m grateful to everyone who’s been part of this journey, from my small but mighty team, to our research partners, and to the community of readers and investors who follow our work. Thank you for the trust and the engagement; it means the world to me.

Lastly, for our partners and followers, keep an eye out for our Q4 investor letter, which is coming soon (for those interested, the Q1, Q2, and Q3 letters are already available in our NAV portal). I can’t wait to share more of our thoughts on the year gone by and the opportunities ahead. Here’s to building on this year’s momentum and making 2026 even better. Happy New Year to all and let’s continue to learn, innovate, and compound those gains together!

Disclaimer: This article is provided for informational and educational purposes only and should not be construed as investment advice, an offer, or a solicitation to buy or sell any securities. The alpha Brief Portfolio is a model portfolio, not a live investment product, brokerage account, or managed fund, and does not represent actual trading activity.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. You are solely responsible for evaluating any investment, security, or strategy based on your personal objectives, financial situation, and risk tolerance. Henriot Investment Management Ltd /Henriot Capital LLC does not provide personalized investment advice and is not a licensed securities dealer, broker, or investment adviser.