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 Magnera Corporation (NYSE:MAGN). Magnera Corporation (NYSE:MAGN) manufactures and distributes non-woven and related products. The one-month return of Magnera Corporation (NYSE:MAGN) was 4.32%, and its shares lost 40.36% of their value over the last 52 weeks. On June 18, 2025, Magnera Corporation (NYSE:MAGN) stock closed at $12.56 per share with a market capitalization of $447.136 million.
Kingdom Capital Advisors stated the following regarding Magnera Corporation (NYSE:MAGN) in its Q1 2025 investor letter:
“In our last letter, we noted Magnera Corporation (NYSE:MAGN) could potentially benefit from tariffs. We were pleased with their February report, after which insiders stepped up and bought shares in the open market, including a $500k purchase from the new CEO. I consider Magnera a well-managed industry leader trading for an attractive valuation in a defensive category, trading for a trough multiple on trough earnings. We were very happy with their rollout as a public company, and we were not alone, as many notable funds have filed ownership of the stock on their latest 13F reports. Of note, we did buy some puts on the XLP ETF tied to this position, as it contains many of Magnera’s end customers. If those businesses weaken, we will have some protection.”
A close up of different packs of diapers and wipes, demonstrating the company’s main product range.
Magnera Corporation (NYSE:MAGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Magnera Corporation (NYSE:MAGN) at the end of the first quarter, which was 47 in the previous quarter. While we acknowledge the potential of Magnera Corporation (NYSE:MAGN) 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 Magnera Corporation (NYSE:MAGN) and shared the list of Michael Burry stocks with huge upside potential. Kingdom Capital Advisors added Magnera Corporation (NYSE:MAGN) to its portfolio during Q4 2024. 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 MAGN 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.
