Here’s How Dollar General Corporation (DG) is Benefitting from Tariff Fears And Policy Uncertainty

Artisan Partners, an investment management company, released its “Artisan Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The growth stock trend that had driven US stocks up since late 2022 collapsed in Q1. The fund’s Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned 2.23%, 2.24%, and 2.31%, respectively, in the first quarter compared to a 2.14% return for the Russell 1000® Value Index. The relative performance was positively influenced by its sector allocation, which included lower-than-benchmark weightings in information technology and industrials, as well as a higher allocation in consumer staples. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2025.

In its first-quarter 2025 investor letter, Artisan Value Fund highlighted stocks such as Dollar General Corporation (NYSE:DG). Dollar General Corporation (NYSE:DG) is a discount retailer that provides various merchandise products. The one-month return of Dollar General Corporation (NYSE:DG) was 7.50%, and its shares lost 29.10% of their value over the last 52 weeks. On May 29, 2025, Dollar General Corporation (NYSE:DG) stock closed at $97.07 per share, with a market capitalization of $21.35 billion.

Artisan Value Fund stated the following regarding Dollar General Corporation (NYSE:DG) in its Q1 2025 investor letter:

“Other top performers were Heineken and Dollar General Corporation (NYSE:DG). Discount retailer Dollar General (DG) has contended with several business pressures post the pandemic, including execution issues, rising competition and an increasingly constrained lower income consumer after a period of high inflation. Additionally, labor costs, shrink and markdowns have hurt margins. However, the stock has been experiencing renewed interest amid a broader market rotation to cheaper stocks driven by tariff fears and policy uncertainty, as well as the potential for some of DG’s headwinds to subside. The company is making progress on fixing operational issues, from store standards to supply-chain execution and labor efficiency. Additionally, with inflation stabilizing, there are early signs that customers have adjusted to higher price levels as basket sizes and units are beginning to rise again. Another dynamic is DG’s business model is countercyclical. During tougher economic times, DG typically gets trade-down business from middle-income cohorts, and with the possibility that escalating tariffs could trigger a recession, investors see DG as a potential beneficiary.”

Dollar General Corporation (NYSE:DG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 55 hedge fund portfolios held Dollar General Corporation (NYSE:DG) at the end of the first quarter, which was 53 in the previous quarter. While we acknowledge the potential of Dollar General Corporation (NYSE:DG) 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 Dollar General Corporation (NYSE:DG) and shared and shared the list of stocks Jim Cramer discussed recently. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.