Investment management company Vulcan Value Partners recently released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter experienced the return of volatility. The companies’ management teams expressed a more cautious view following the recent election. Optimism has given way to uncertainty about tariffs and potential impacts on earnings, inflation, and economic growth. In the quarter, the Large Cap Composite returned -2.1% net of fees and expenses, the Small Cap Composite returned -4.5% net, the Focus Composite returned -5.8% net, the Focus Plus composite returned -6.0% and the All-Cap Composite returned -4.1% net. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first quarter 2025 investor letter, Vulcan Value Partners emphasized stocks such as Ituran Location and Control Ltd. (NASDAQ:ITRN). Headquartered in Azor, Israel, Ituran Location and Control Ltd. (NASDAQ:ITRN) provides location-based telematics services and machine-to-machine telematics products. On April 14, 2025, Ituran Location and Control Ltd. (NASDAQ:ITRN) stock closed at $33.38 per share. One-month return of Ituran Location and Control Ltd. (NASDAQ:ITRN) was -10.72%, and its shares gained 27.50% of their value over the last 52 weeks. Ituran Location and Control Ltd. (NASDAQ:ITRN) has a market capitalization of $664.048 million.
Vulcan Value Partners stated the following regarding Ituran Location and Control Ltd. (NASDAQ:ITRN) in its Q1 2025 investor letter:
“There were two material contributors to performance: ISS A/S and Ituran Location and Control Ltd. (NASDAQ:ITRN). Ituran is an Israel-based company that provides stolen vehicle recovery services. Its largest market is Israel, followed by Brazil. They offer a subscription service that allows customers’ vehicles to be tracked using RF technology. Customers typically receive a discount on their auto insurance when they subscribe to Ituran’s service. Ituran’s revenue model produces strong free cash flow and stable margins. The company is performing well, and we believe remains discounted despite the recent increase in share price.”
A technician calibrating a telematics device in a central control room.
Ituran Location and Control Ltd. (NASDAQ:ITRN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Ituran Location and Control Ltd. (NASDAQ:ITRN) at the end of the fourth quarter which was 12 in the previous quarter. While we acknowledge the potential of Ituran Location and Control Ltd. (NASDAQ:ITRN) 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 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.