Renaissance Investment Management, an investment management company, released its Q1 2025 “Small Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. The S&P 500 has not seen a “correction” since 2023, yet such events are usual every two years. While the firm continues to identify solid investment opportunities, especially in high-quality, fairly priced stocks that have lagged major market indices for several years. As uncertainty around the impact of the economic policies of President Trump weighed on sentiment, the Russell 2000 Growth Index declined in the quarter. While the strategy also declined in the quarter but outperformed the index. 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 Investment Management Small Cap Growth Strategy highlighted stocks such as Flywire Corporation (NASDAQ:FLYW). Headquartered in Boston, Massachusetts, Flywire Corporation (NASDAQ:FLYW) is a payments enablement and software company. The one-month return of Flywire Corporation (NASDAQ:FLYW) was -4.79%, and its shares lost 28.98% of their value over the last 52 weeks. On June 18, 2025, Flywire Corporation (NASDAQ:FLYW) stock closed at $10.93 per share, with a market capitalization of $1.329 billion.
Renaissance Investment Management Small Cap Growth Strategy stated the following regarding Flywire Corporation (NASDAQ:FLYW) in its Q1 2025 investor letter:
“Flywire Corporation (NASDAQ:FLYW), a global payments software provider, detracted the most for the quarter as the company guided 2025 revenue growth to the 10 – 14% range versus prior expectations of greater than 20%. Management’s outlook incorporates a 30% decline in its Canadian and Australian revenues due to a drop in the number of foreign visas issued. In addition, the company has a strong presence in the education market that is seeing lower demand from international students.”
A digital tablet presenting various payment options alongside an educational lecture on the benefits of diverse capabilities.
Flywire Corporation (NASDAQ:FLYW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Flywire Corporation (NASDAQ:FLYW) at the end of the first quarter, which was 34 in the previous quarter. While we acknowledge the potential of Flywire Corporation (NASDAQ:FLYW) 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 Flywire Corporation (NASDAQ:FLYW) and shared Prosper Stars & Stripes 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 FLYW 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.
