Bel Fuse (BELFB) Navigates Tariff Challenges with Strategic Resilience

Greystone Capital Management, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the median account return for separate accounts managed by the firm was -7.9%, net of fees. The fund unfavorably and favorably compared to the S&P 500 and Russell 2000 returns of -4.2% and -9.5% during the quarter. Client portfolios are concentrated in small companies mostly outside major indices, leading to returns that typically differ from those indices. 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, Greystone Capital Management highlighted stocks such as Bel Fuse Inc. (NASDAQ:BELFB). Bel Fuse Inc. (NASDAQ:BELFB) designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The one-month return of Bel Fuse Inc. (NASDAQ:BELFB) was -2.40%, and its shares gained 12.80% of their value over the last 52 weeks. On May 6, 2025, Bel Fuse Inc. (NASDAQ:BELFB) stock closed at $69.81 per share with a market capitalization of $869.909 million.

Greystone Capital Management stated the following regarding Bel Fuse Inc. (NASDAQ:BELFB) in its Q1 2025 investor letter:

“Within Bel Fuse Inc.’s (NASDAQ:BELFB) operating footprint, around 13% of total revenues are directly exposed to tariffs via China and Mexico. Bel has shown the ability to pass cost increases through to customers, which they anticipate will continue, with minimal impact to Bel’s financials. Localized manufacturing will also help offset any further impact. During the past few years, management has proven adept at navigating both internal business issues along with the difficult post-COVID economic environment that has plagued a few of their business segments.

A recession would not be ideal for Bel Fuse, and following the acquisition of Enercon, they are leveraged 2.8x. however, management has always shown conservatism and Bel has a cash generative business model that provides a decent margin of safety. My estimate of intrinsic value is between $120-135/share, versus a current price of $67/share.”

A close-up of a technician’s hands assembling electronic components on a circuit board.

Bel Fuse Inc. (NASDAQ:BELFB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held Bel Fuse Inc. (NASDAQ:BELFB) at the end of the fourth quarter, compared to 14 in the third quarter. While we acknowledge the potential of Bel Fuse Inc. (NASDAQ:BELFB) 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 another article, we covered Bel Fuse Inc. (NASDAQ:BELFB) and shared Merion Road Capital Management’s views on the company in the previous quarter. 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.