Should You Hold Flowco Holdings (FLOC)?

Loomis Sayles, an investment management company, released its “Small/Mid Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The quarter started with an extreme level of policy uncertainty but concluded with an all-time high for the S&P 500. In this environment, the fund lagged the Russell 2500 Growth Index benchmark in the quarter, returning 8.49% vs. 11.31% for the index. Security selection within the consumer discretionary and financials sectors led the underperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Loomis Sayles Small/Mid Cap Growth Fund highlighted stocks such as Flowco Holdings Inc. (NYSE:FLOC). Flowco Holdings Inc. (NYSE:FLOC) is a US-based company that offers production optimization, artificial lift, and methane abatement solutions for the oil and natural gas industry. The one-month return of Flowco Holdings Inc. (NYSE:FLOC) was -1.00%, and its shares lost 12.29% of their value over the last three weeks. On September 12, 2025, Flowco Holdings Inc. (NYSE:FLOC) stock closed at $15.84 per share, with a market capitalization of $1.43 billion.

Loomis Sayles Small/Mid Cap Growth Fund stated the following regarding Flowco Holdings Inc. (NYSE:FLOC) in its second quarter 2025 investor letter:

"Clearwater Analytics Holdings, Champion Homes and Flowco Holdings Inc. (NYSE:FLOC) were the largest individual detractors from performance. Flowco is an oilfield service provider focused on the production phase of the well, which has been a more stable area of the market from a spending standpoint. We believe the company possesses market share gaining technology in two areas that are leading to disproportionate growth. However, the timing of its IPO this year coincided with a tougher spending environment by customers as commodity prices declined."Why Amplify Energy Corp. (AMPY) Is Losing This Week?

Flowco Holdings Inc. (NYSE:FLOC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Flowco Holdings Inc. (NYSE:FLOC) at the end of the second quarter, compared to 21 in the previous quarter. While we acknowledge the potential of Flowco Holdings Inc. (NYSE:FLOC) 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.

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In another article, we covered Flowco Holdings Inc. (NYSE:FLOC) and shared the list of best IPO stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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