Wasatch World Buyers, an asset administration firm, launched its “Wasatch Micro-Cap Fund” first-quarter 2025 investor letter. A replica of the letter will be downloaded right here. The fund was down -16.57% within the quarter, outperforming the benchmark Russell Microcap® Development Index’s -17.75% return. U.S. equities fell in Q1, pushed by tariffs, funds cuts, financial weak spot, stagflation issues, and AI-related firms, affecting micro-cap firms. As well as, please test the fund’s high 5 holdings to know its finest picks in 2025.
In its first-quarter 2025 investor letter, Wasatch Micro-Cap Fund highlighted shares reminiscent of HCI Group, Inc. (NYSE:HCI). HCI Group, Inc. (NYSE:HCI) engages within the enterprise of property and casualty insurance coverage, reinsurance, actual property, and data know-how. The one-month return of HCI Group, Inc. (NYSE:HCI) was 12.90%, and its shares gained 68.28% of their worth over the past 52 weeks. On Could 27, 2025, HCI Group, Inc. (NYSE:HCI) inventory closed at $165.18 per share with a market capitalization of $1.91 billion.
Wasatch Micro-Cap Fund said the next concerning HCI Group, Inc. (NYSE:HCI) in its Q1 2025 investor letter:
“HCI Group, Inc. (NYSE:HCI) was the most important contributor to Fund efficiency through the quarter. It gives householders insurance coverage, primarily in Florida. The corporate benefited from lower-than-expected claims throughout hurricane season, firmer pricing and robust earnings expectations for the yr.”
A house owner fortunately smiling whereas holding a replica of their new insurance coverage coverage.
HCI Group, Inc. (NYSE:HCI) isn’t on our record of 30 Most Well-liked Shares Amongst Hedge Funds. As per our database, 25 hedge fund portfolios held HCI Group, Inc. (NYSE:HCI) on the finish of the primary quarter, which was 20 within the earlier quarter. Whereas we acknowledge the potential of HCI Group, Inc. (NYSE:HCI) as an funding, our conviction lies within the perception that AI shares maintain better promise for delivering larger returns, and doing so inside a shorter timeframe. In case you are searching for an AI inventory that’s as promising as NVIDIA however that trades at lower than 5 occasions its earnings, take a look at our report concerning the undervalued AI inventory set for large positive aspects.
As well as, please take a look at our hedge fund investor letters Q1 2025 web page for extra investor letters from hedge funds and different main buyers.
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Disclosure: None. This text is initially revealed at Insider Monkey.