Renaissance Investment Management, an investment management company, released its Q1 2025 “International Small Cap Equity Strategy” investor letter. A copy of the letter can be downloaded here. International equities began the year positively, recording strong gains despite increased geopolitical and tariff risks. Investors rotate away from US stocks due to concerns over the weakening US economy, which enabled international equities to achieve their best quarter. Decline in the U.S. Dollar Index offered additional support to international equities. However, the portfolio returns were negative on both an absolute basis and relative to the benchmark in the first quarter. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Renaissance International Small Cap Equity Strategy highlighted stocks such as FinVolution Group (NYSE:FINV). FinVolution Group (NYSE:FINV) is an online consumer finance company. The one-month return of FinVolution Group (NYSE:FINV) was 13.08%, and its shares gained 96.89% of their value over the last 52 weeks. On June 18, 2025, FinVolution Group (NYSE:FINV) stock closed at $9.51 per share, with a market capitalization of $2.41 billion.
Renaissance International Small Cap Equity Strategy stated the following regarding FinVolution Group (NYSE:FINV) in its Q1 2025 investor letter:
“The top contributor to our portfolio performance during the quarter was FinVolution Group (NYSE:FINV) (China). The online consumer finance company performed well during the quarter as the company reported strong international growth in Indonesia and the Philippines, where favorable macroeconomic conditions and an expansion in available products boosted transaction volumes.”
An individual using a laptop to access the fintech platform to manage their finances.
FinVolution Group (NYSE:FINV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held FinVolution Group (NYSE:FINV) at the end of the first quarter, which was 13 in the previous quarter. FinVolution Group’s (NYSE:FINV) net revenue for the quarter reached RMB 3.5 billion, marking a 10% increase year-over-year. While we acknowledge the potential of FinVolution Group (NYSE:FINV) 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 FinVolution Group (NYSE:FINV) and shared top AI news updates investors shouldn’t miss. 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 FINV 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.
