GreensKeeper Asset Management, an investment management company, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets had a difficult start to 2025; with high levels of volatility in all of the main indices. The Value Fund finished the first quarter +3.0% net of fees and expenses net of fees and expenses. For the first quarter, the S&P/TSX retuned +1.5%, the S&P500 -4.2% and the Nasdaq –10.2%. The markets fell around 10% this past week as a result of President Trump’s April 2 “Liberation Day” tariff announcement. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first quarter 2025 investor letter, GreensKeeper Asset Management emphasized stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was -2.23%, and its shares gained 0.17% of their value over the last 52 weeks. On April 9, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $161.06 per share with a market capitalization of $1.77 trillion.
GreensKeeper Asset Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:
“Our biggest laggard in the first quarter was Alphabet Inc. (NASDAQ:GOOG) -18.3%. Shares sold off following the company’s year-end earnings release in February, where it announced plans to increase capital expenditures by a substantial $23 billion in 2025. Recently, GOOG also announced its intention to acquire cybersecurity firm Wiz Inc. for $32 billion, aiming to strengthen its position in the cloud computing market. The scale of these investments is substantial, but we note that GOOG generated $116 billion in operating profits during 2024 and ended the year with $93 billion of excess cash on its balance sheet. In our opinion, the increased capital expenditures are necessary to maintain GOOG’s position in its core search market. Beyond search, GOOG continues to build value across YouTube, Google Cloud, Waymo, and DeepMind, all of which leverage GOOG’s enviable infrastructure.”
A laptop and phone open to Google’s services in an everyday setting.
Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 174 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the fourth quarter which was 160 in the previous quarter. In 2024, Alphabet Inc. (NASDAQ: GOOG) achieved a revenue growth of 14% compared to 2023, reaching $350 billion. For the fourth quarter, the revenue was $96.5 billion, reflecting a 12% increase in both reported and constant currency. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We covered Alphabet Inc. (NASDAQ:GOOG) in another article, where we shared ClearBridge Large Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.