Magellan Asset Managementan investment management firm, published the Q3 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on outstanding companies at attractive prices while leveraging a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, global stocks rose 7.3% in the September quarter. The portfolio underperformed the index during the quarter due to the strong performance of more speculative companies in the risk environment. Plus, check out the fund’s top five holdings for its top picks in 2025.

In its Q3 2025 letter to investors, Magellan Global Fund highlighted stocks like SAP SE (NYSE:know). SAP SE (NYSE:SAP) is a leading provider of business applications and business solutions. One month return of SAP SE (NYSE:SAP) was 2.48% and its stock lost 3.21% of its value in last 52 weeks. On December 12, 2025, SAP SE (NYSE:SAP) stock closed at $242.98 per share, with a market capitalization of $285.666 billion.

Magellan Global Fund stated the following regarding SAP SE (NYSE:SAP) in its Q3 2025 investor letter:

“The biggest detractors from portfolio performance during the quarter were Chipotle Mexican Grill, Intuit and YOU KNOW (NYSE: SAP). SAP faced headwinds amid market concerns about the disruptive potential of AI. While we recognize the validity of some concerns, we believe the market reaction has been indiscriminate with SAP well positioned as the market leader in the highly defensible enterprise resource planning (ERP) category, while benefiting from the tailwind of accelerating cloud adoption.”

SAP SE (NYSE:SAP) is not on our list The 30 most popular stocks among hedge funds. According to our database, 34 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the third quarter, up from 32 in the previous quarter. While we recognize the potential of SAP SE (NYSE:SAP) as an investment, we believe some AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best short term AI stock.

In another articlewe covered SAP SE (NYSE:SAP) and shared Polen International Growth Strategy’s views on the company. Also, check out our Hedge Fund Investor Letters Q3 2025 page for more letters from hedge fund investors and other leading investors.