Bristlemoon Capital, a global equities firm, released its “Bristlemoon Global Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -3.2% in the first quarter, -6.5% for March 2025, and 14.0%, net of fees, for the nine months ending March 31, 2025. The firm’s observation is that the value returns to the market, with several stocks starting to appear interesting. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Bristlemoon Global Fund highlighted stocks such as Interactive Brokers Group, Inc. (NASDAQ:IBKR). Founded in 1977, Interactive Brokers Group, Inc. (NASDAQ:IBKR) is an automated electronic broker. The one-month return of Interactive Brokers Group, Inc. (NASDAQ:IBKR) was -75.26%, and its shares lost 56.54% of their value over the last 52 weeks. On June 17, 2025, Interactive Brokers Group, Inc. (NASDAQ:IBKR) stock closed at $208.17 per share, with a market capitalization of $87.97 billion.
Bristlemoon Global Fund stated the following regarding Interactive Brokers Group, Inc. (NASDAQ:IBKR) in its Q1 2025 investor letter:
“Post quarter-end, we exited two of the Fund’s positions: Interactive Brokers Group, Inc. (NASDAQ:IBKR) and Pinterest. Interactive Brokers (IBKR) is a global electronic brokerage business that offers industry-leading execution at industry-low cost. The company has delivered phenomenal client account growth of 37 percent annualised over the past five years, exceeding 3.3 million accounts by December 2024. IBKR also grew client equity at over twice the rate of traditional discount brokerage and wealth management peers.
As far as business quality goes, IBKR ticked all our boxes: it earned a 22 percent return on equity, up from just 8 percent ten years ago despite being six times overcapitalised; it offers the lowest price and best execution for active traders yet has market-leading pre-tax margins of over 70 percent; it has a technology and product breadth advantage built over decades; and its founder still owns 74% of the company…” (Click here to read the full text)
A skilled senior trader executing an order in a fast paced trading environment.
Interactive Brokers Group, Inc. (NASDAQ:IBKR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Interactive Brokers Group, Inc. (NASDAQ:IBKR) at the end of the first quarter, which was 69 in the previous quarter. While we acknowledge the potential of Interactive Brokers Group, Inc. (NASDAQ:IBKR) 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 Interactive Brokers Group, Inc. (NASDAQ:IBKR) and shared the list of stocks on Jim Cramer’s radar. 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 IBKR 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.
