Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the Fund was up 1.7% in USD terms and 1.1% in AUD terms but down 2.4% in EUR terms due to a strengthening currency. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Conventum – Alluvium Global Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 2.31%, and its shares lost 1.40% of their value over the last 52 weeks. On June 18, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $173.98 per share, with a market capitalization of $2.107 trillion.
Conventum – Alluvium Global Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG), ie Google/YouTube, fell 18.2%, no doubt largely due to the general decline in sentiment toward “tech” stocks and the “Mag 7”. Management reported results that looked okay to us, but what do we know – the share price tumbled 7.3% on the day. Apparently concerns over capital spending resurfaced as it announced it USD 75b spending plans (it seems 30% growth in its Cloud business is not enough to justify it). Management also announced the USD 32m acquisition of Wiz, a cloud security platform which is an existing Google partner and also works with Amazon’s AWS and Microsoft’s Azure. We updated our revenue and margin assumptions and factored in higher capital spending, all up leading to a higher valuation. With that, and a declining share price, it now trades at a slight discount to our valuation. It represents 4.0% of the Fund.”
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 164 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 174 in the previous quarter. In the first quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved a revenue of $90.2 billion, representing an increase of 12% from Q1 2024. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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 another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared Madison Sustainable Equity 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. While we acknowledge the potential of GOOG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
