Wasatch Global Investors, an asset management company, released its “Wasatch Micro-Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund was down -16.57% in the quarter, outperforming the benchmark Russell Microcap® Growth Index’s -17.75% return. U.S. equities fell in Q1, driven by tariffs, budget cuts, economic weakness, stagflation concerns, and AI-related companies, affecting micro-cap companies. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Wasatch Micro-Cap Fund highlighted stocks such as HCI Group, Inc. (NYSE:HCI). HCI Group, Inc. (NYSE:HCI) engages in the business of property and casualty insurance, reinsurance, real estate, and information technology. The one-month return of HCI Group, Inc. (NYSE:HCI) was 12.90%, and its shares gained 68.28% of their value over the last 52 weeks. On May 27, 2025, HCI Group, Inc. (NYSE:HCI) stock closed at $165.18 per share with a market capitalization of $1.91 billion.
Wasatch Micro-Cap Fund stated the following regarding HCI Group, Inc. (NYSE:HCI) in its Q1 2025 investor letter:
“HCI Group, Inc. (NYSE:HCI) was the largest contributor to Fund performance during the quarter. It provides homeowners insurance, primarily in Florida. The company benefited from lower-than-expected claims during hurricane season, firmer pricing and strong earnings expectations for the year.”
A homeowner happily smiling while holding a copy of their new insurance policy.
HCI Group, Inc. (NYSE:HCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held HCI Group, Inc. (NYSE:HCI) at the end of the first quarter, which was 20 in the previous quarter. While we acknowledge the potential of HCI Group, Inc. (NYSE:HCI) 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 undervalued AI stock set for massive gains.
In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
