Janus Henderson Investors, an investment management company, released its “Janus Henderson Forty Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -8.74 % in the first quarter, compared to the Russell 1000 Growth Index’s 4.28% return. Stock selection in the consumer discretionary and financial sectors contributed to the relative performance of the fund in the quarter, while selection in information technology and healthcare detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Janus Henderson Forty Fund highlighted stocks such as Datadog, Inc. (NASDAQ:DDOG). Datadog, Inc. (NASDAQ:DDOG) is an observability and security platform for cloud applications. The one-month return of Datadog, Inc. (NASDAQ:DDOG) was 4.26%, and its shares gained 4.11% of their value over the last 52 weeks. On June 12, 2025, Datadog, Inc. (NASDAQ:DDOG) stock closed at $122.68 per share, with a market capitalization of $42.37 billion.
Janus Henderson Forty Fund stated the following regarding Datadog, Inc. (NASDAQ:DDOG) in its Q1 2025 investor letter:
“Another relative detractor was technology company Datadog, Inc. (NASDAQ:DDOG), which provides an observability and security platform for cloud applications. Datadog’s monitoring services ensure cloud-based applications run efficiently without downtime or latency issues. The stock underperformed due to mixed guidance, especially on costs, despite strong Q4 earnings. Higher-growth stocks faced pressure during the quarter, but we believe the company’s platform remains well positioned with significant tailwinds from AI adoption, particularly in inferencing.”
A close-up of a laptop with a software engineer coding on the monitor.
Datadog, Inc. (NASDAQ:DDOG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge fund portfolios held Datadog, Inc. (NASDAQ:DDOG) at the end of the first quarter, which was 83 in the previous quarter. Datadog, Inc. (NASDAQ:DDOG) reported revenue of $762 million in the first quarter of 2025, marking an increase of 25% year-over-year. While we acknowledge the potential of Datadog, Inc. (NASDAQ:DDOG) 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 Datadog, Inc. (NASDAQ:DDOG) and shared the list of AI stocks making waves on Wall Street. 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 DDOG 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.
