Kingdom Capital Advisors, a private investment firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Kingdom Capital Advisors (KCA Value Composite) returned -7.08% (net of fees), compared to -9.48% for the Russell 2000 TR, -4.27% for the S&P 500 TR, and -8.07% for the NASDAQ 100 TR. Investors and international leaders grappled with Trump’s increasing tariffs in Q1. Markets speculated on long-term business impacts, with initial market verdicts being harsh. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Kingdom Capital Advisors highlighted stocks such as Superior Industries International, Inc. (NYSE:SUP). Superior Industries International, Inc. (NYSE:SUP) manufactures and distributes aluminum wheels to the original equipment manufacturers and aftermarket distributors. The one-month return of Superior Industries International, Inc. (NYSE:SUP) was -35.22%, and its shares lost 90.30% of their value over the last 52 weeks. On June 18, 2025, Superior Industries International, Inc. (NYSE:SUP) stock closed at $0.32 per share, with a market capitalization of $9.547 million.
Kingdom Capital Advisors stated the following regarding Superior Industries International, Inc. (NYSE:SUP) in its Q1 2025 investor letter:
“The most acute pressure point remaining in our portfolio is Superior Industries International, Inc. (NYSE:SUP). As expected, they forecasted $160-180m of FY25 EBITDA in their March earnings release, despite anticipated declines in light vehicle production. Tariffs on U.S. autos are unsustainable in their current form. The new levies on Canada, Mexico, China, steel, aluminum, and finished vehicles would drastically raise prices and eliminate automaker profits. Analysis from the firm Wedbush noted this week that moving 10% of the current auto supply chain to the US would take three years and cost over $100B. But what company will undertake even a portion of that move when messaging changes weekly, daily, and hourly? I’m staying with Superior for a few reasons:
This administration has been adamant about lowering costs for consumers, which can be accomplished in the auto industry through deregulation and production increases. As they stand, the auto tariffs accomplish the opposite, so I anticipate tariff adjustments, exemptions, etc…” (Click here to read the full text)
A warehouse in the supply chain network, showing how goods are shipped from manufacturer to customers.
Superior Industries International, Inc. (NYSE:SUP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Superior Industries International, Inc. (NYSE:SUP) at the end of the first quarter, which was 8 in the previous quarter. Superior Industries International, Inc. (NYSE:SUP) reported first quarter revenue of $322 million compared to $316 million in Q1 2024. While we acknowledge the potential of Superior Industries International, Inc. (NYSE:SUP) 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 Superior Industries International, Inc. (NYSE:SUP) and shared Kingdom Capital Advisors’ views on the company in the previous quarter. 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 SUP 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.
