Prosper Stars & Stripes, a long/short equity fund, recently released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund underperformed and generated a net return of -9.7% compared to a total return of -9.5% for the long-only small cap Russell 2000 Index (the “Russell”), and a total return of 0.2% for the long/short equity hedge fund peer group represented by the HFRX Equity Hedge Index (the “HFRX”). A combination of factors led the composite to underperform compared to its net exposure at the start of the year. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Prosper Stars & Stripes Fund highlighted stocks such as Kornit Digital Ltd. (NASDAQ:KRNT). Kornit Digital Ltd. (NASDAQ:KRNT) designs and markets digital textile printing solutions. The one-month return of Kornit Digital Ltd. (NASDAQ:KRNT) was -10.25%, and its shares gained 43.82% of their value over the last 52 weeks. On June 16, 2025, Kornit Digital Ltd. (NASDAQ:KRNT) stock closed at $20.58 per share, with a market capitalization of $932.84 million.
Prosper Stars & Stripes Fund stated the following regarding Kornit Digital Ltd. (NASDAQ:KRNT) in its Q1 2025 investor letter:
“Lastly, changing global supply chains will benefit certain companies. Two examples of this are Xometry Inc (XMTR) andKornit Digital Ltd. (NASDAQ:KRNT). KRNT’s printing machines allow for localized textile production. We believe both businesses ought to benefit from the rapidly changing trade backdrop and that both have unique business models with strong, scalable financial profiles.”
An industrial printing machine churning out specialized orders for a major client.
Kornit Digital Ltd. (NASDAQ:KRNT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Kornit Digital Ltd. (NASDAQ:KRNT) at the end of the first quarter, which was 17 in the previous quarter. Kornit Digital Ltd. (NASDAQ:KRNT) reported first quarter revenues of $46.5 million, which falls within the guidance range of $45.5 million to $49.5 million provided in February. While we acknowledge the potential of Kornit Digital Ltd. (NASDAQ:KRNT) 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 Kornit Digital Ltd. (NASDAQ:KRNT) and shared Meridian Contrarian Fund’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 KRNT 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.
