Andvari Associates, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned 7.2% net of fees compared to the SPDR S&P 500 ETF’s 4.3% decline. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its first quarter 2025 investor letter, Andvari Associates emphasized stocks such as O’Reilly Automotive, Inc. (NASDAQ:ORLY). O’Reilly Automotive, Inc. (NASDAQ:ORLY) is a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories. The one-month return of O’Reilly Automotive, Inc. (NASDAQ:ORLY) was 3.46%, and its shares gained 27.58% of their value over the last 52 weeks. On April 10, 2025, O’Reilly Automotive, Inc. (NASDAQ:ORLY) stock closed at $1,373.36 per share with a market capitalization of $78.612 billion.
Andvari Associates stated the following regarding O’Reilly Automotive, Inc. (NASDAQ:ORLY) in its Q1 2025 investor letter:
“Andvari also owns two companies that are distributors of physical goods: O’Reilly Automotive, Inc. (NASDAQ:ORLY) and Pool Corporation. Out of all the businesses we own, these two might face the greatest risks of rising costs due to tariffs, but we shall see. O’Reilly is one of the largest distributors of auto parts in the United States and they do most of their business in this country. However, they do source many of their products from countries like China, Mexico, and India. Back during COVID and President Trump’s first tariffs, the company started diversifying it supplier base to create a more resilient supply chain and to minimize as best they could the effects of tari s. But even with tariffs on products that they could only source from China (like suspension components), O’Reilly and its competitors were still able to pass on 20%-25% price increases directly to their customers.”
A mechanic working on a car in an auto shop, skillfully replacing the aftermarket parts.
O’Reilly Automotive, Inc. (NASDAQ:ORLY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held O’Reilly Automotive, Inc. (NASDAQ:ORLY) at the end of the fourth quarter compared to 41 in the third quarter. While we acknowledge the potential of O’Reilly Automotive, Inc. (NASDAQ:ORLY) 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 O’Reilly Automotive, Inc. (NASDAQ:ORLY) in another article, where we shared TimesSquare Capital Management U.S. Focus 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.