Is American Tower Corporation (AMT) Poised For an Outperformance?

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 American Tower Corporation (NYSE:AMT). American Tower Corporation (NYSE:AMT) is a leading independent multitenant communications real estate operator. The one-month return of American Tower Corporation (NYSE:AMT) was -2.04%, and its shares gained 15.30% of their value over the last 52 weeks. On April 10, 2025, American Tower Corporation (NYSE:AMT) stock closed at $208.32 per share with a market capitalization of $97.518 billion.

Andvari Associates stated the following regarding American Tower Corporation (NYSE:AMT) in its Q1 2025 investor letter:

“Our holdings that have been most sensitive to interest rates remain well-poised for outperformance. Our two cell tower REITs—American Tower Corporation (NYSE:AMT) and SBA Communications—have continued to reduce their debt and leverage ratios. Both have also recently increased their quarterly dividend payments to shareholders. American Tower is most notable in this regard as it paused dividend increases for a year.”

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A wide angled view of a high-rise office building, the windows reflecting a nearby cityscape.

American Tower Corporation (NYSE:AMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held American Tower Corporation (NYSE:AMT) at the end of the fourth quarter compared to 73 in the third quarter. While we acknowledge the potential of American Tower Corporation (NYSE:AMT) 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 American Tower Corporation (NYSE:AMT) in another article, where we shared the list of best real estate stocks to buy according to billionaires. 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.