Do You Believe in the Growth Prospects of CrowdStrike Holdings (CRWD)?

Maple Tree Capital, an investment management company, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. Q1 2025 saw a strong start but turned sour due to tariff concerns and macroeconomic fears, leading to a sharp market pullback, with the Nasdaq falling nearly 22% from its highs and the S&P 500 down 20%. Despite the challenges, the firm made significant progress this quarter by averaging in the top-conviction stocks, utilizing covered calls, and exercising patience. Maple’s growth-oriented fund, Jonagold, has become a standout performer, greatly surpassing all major benchmarks since its launch in 2023. While Heartwood is still facing difficulties. Maple Tree Capital’s Jonagold returned -13.64% in Q1 compared to the Nasdaq’s -10.26% return and the Russel 2000’s -9.48% return. Maple Tree Capital’s Heartwood returned -18.04% in Q1 vs. the S&P 500’s -4.27% and the Dow Jones’ -0.87% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Maple Tree Capital highlighted stocks such as CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a global cybersecurity solutions provider. The one-month return of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was 8.56%, and its shares gained 48.40% of their value over the last 52 weeks. On May 28, 2025, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock closed at $468.83 per share with a market capitalization of $116.773 billion.

Maple Tree Capital stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q1 2025 investor letter:

“We purchased CrowdStrike Holdings, Inc. (NASDAQ:CRWD) during the July cyber outage dip. This was one of those rare moments where the market panicked on a market leader. CrowdStrike fits Heartwood’s strategy well. They have strong customer retention, a clear moat, a path to margin expansion and operating leverage as they grow their platform. As one of the most crucial cyber security providers out there, their recent failure has largely been forgotten. CRWD trades expensive, but future growth prospects are heavy.”

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is in not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of the first quarter which was 77 in the previous quarter. In the third quarter of fiscal 2025, CrowdStrike Holdings, Inc.’s (NASDAQ:CRWD) subscription revenue grew 31% year-over-year and total revenue exceeded $1 billion. While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) 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 CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and shared the list of stocks Jim Cramer had on his 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.

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Disclosure: None. This article is originally published at Insider Monkey.