Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Large Cap Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -6.49%, net of fees, in the quarter compared to a -4.27% return for the S&P 500 Total Returns Index. In the quarter, the disruptive policies disrupted the economic outlook, and the equity market fell sharply at the end of the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Hardman Johnston Large Cap Equity Strategy highlighted stocks such as Howmet Aerospace Inc. (NYSE:HWM). Howmet Aerospace Inc. (NYSE:HWM) provides advanced engineered solutions for the aerospace and transportation industries. The one-month return of Howmet Aerospace Inc. (NYSE:HWM) was 4.25%, and its shares gained 114.61% of their value over the last 52 weeks. On June 17, 2025, Howmet Aerospace Inc. (NYSE:HWM) stock closed at $172.12 per share, with a market capitalization of $69.48 billion.
Hardman Johnston Large Cap Equity Strategy stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q1 2025 investor letter:
“Contributors to performance were led by Howmet Aerospace Inc. (NYSE:HWM) and Vertex Pharmaceuticals Inc. Shares in Howmet continued to outperform during the quarter after the company reported another earnings beat. While initial 2025 guidance was somewhat conservative, we view them as prudently cautious given ongoing supply chain issues while also establishing a low bar for ongoing earnings beats. A major fire at a competitor’s fastener facility has the potential to further exacerbate industry supply chain issues, which could imperil competitors’ planned production ramps. For Howmet, it is an opportunity to gain share, and any slowdown would be offset by its high-margin aftermarket sales. We continue to view Howmet as exhibiting resilient growth driven by its core aerospace exposure, with increasing contribution from its industrial gas turbine component business.”
Engineers examining stress tests of an aircraft engine, working to make sure its ready for flight.
Howmet Aerospace Inc. (NYSE:HWM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Howmet Aerospace Inc. (NYSE:HWM) at the end of the first quarter, which was 58 in the previous quarter. While we acknowledge the potential of Howmet Aerospace Inc. (NYSE:HWM) 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 Howmet Aerospace Inc. (NYSE:HWM) and shared Janus Henderson Forty 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 HWM 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.
