Here’s What Happened to Redfin Corporation (RDFN) After the Acquisition Announcement

JDP Capital Management, an investment management company, released its “Survivor & Thriver Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The uncertainty surrounding the impact of tariffs on corporate earnings has led to significant volatility in individual stocks in the first quarter. In this environment, the fund was down 2% net to investors compared to a -4.2% return for the S&P 500, including dividends. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, JDP Capital Management highlighted stocks such as Redfin Corporation (NASDAQ:RDFN). Headquartered in Seattle, Washington, Redfin Corporation (NASDAQ:RDFN) is a real estate brokerage company. The one-month return of Redfin Corporation (NASDAQ:RDFN) was -15.75%, and its shares gained 66.22% of their value over the last 52 weeks. On April 23, 2025, Redfin Corporation (NASDAQ:RDFN) stock closed at $8.61 per share with a market capitalization of $1.1 billion.

JDP Capital Management stated the following regarding Redfin Corporation (NASDAQ:RDFN) in its Q1 2025 investor letter:

“Redfin Corporation (NASDAQ:RDFN) – In December 2022 the fund took a small position in the real estate brokerage firm Redfin at a cost of $4.5 per share. In April 2025 Redfin announced it was being acquired by the leading brokerage firm Rocket Companies (RKT) for $12.50 per share in stock. The transaction makes a lot of sense because RDFN will be stronger and more profitable as a customer acquisition service for a much larger and well capitalized national mortgage player. After the transaction closes in 2Q we plan to keep our RKT stock as the business is better positioned than Redfin to benefit from even a slight recovery in the housing market.”

Is Redfin Corporation (RDFN) the Most Active US Stock to Buy According to Hedge Funds?

A skyline view of a bustling city, representing the company’s presence in the real estate market.

Redfin Corporation (NASDAQ:RDFN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held Redfin Corporation (NASDAQ:RDFN) at the end of the fourth quarter, compared to 22 in the third quarter. While we acknowledge the potential of Redfin Corporation (NASDAQ:RDFN) 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.

In another article, we covered Redfin Corporation (NASDAQ:RDFN) and shared the list of most active US stocks to buy according to hedge funds. 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.