Hinde Group, an investment management company, has released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -0.50% (gross) and -0.87% (net) compared to -4.27% for the S&P 500 Total Return. Upon taking office on January 20, Trump immediately began implementing his policy agenda. The President’s trade policies weighed on financial markets in the quarter. You can check the fund’s top 5 holdings for its best picks for 2025.
In its first-quarter 2025 investor letter, Hinde Group highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return of Alphabet Inc. (NASDAQ:GOOG) was 2.31%, and its shares lost 1.40% of their value over the last 52 weeks. On June 18, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $173.98 per share, with a market capitalization of $2.107 trillion.
Hinde Group stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) is the holding company for Google, one of the preeminent businesses in the world, as well as a collection of other, smaller companies, such as Access (broadband internet), Calico (life sciences), Verily (life sciences), and Waymo (autonomous vehicles), among others. Google has numerous core products used regularly by more than a billion users around the world, including Google Search, Android, Chrome, Gmail, Google Maps, Google Play Store, Google Photos and YouTube. Google accounts for more than 99% of Alphabet’s revenue and profits.
Trump’s trade war will directly impact Google in a few ways. Tariffs will likely hit the technical infrastructure Google uses to run its business, such as servers and networking equipment. Tariffs will also likely apply to the devices that Google designs and sells, such as Nest home products and Pixel books and phones. Although costs for purchasing those items will increase, the impact on Google’s results should be relatively limited. Expenses related to depreciation of technical infrastructure and the cost of devices sold combined likely account for less than ten percent of Google’s revenue currently. Moreover, Google should be able to pass on most of whatever increased costs it faces…” (Click here to read the full text)
A laptop and phone open to Google’s services in an everyday setting.
Alphabet Inc. (NASDAQ:GOOG) is in 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 164 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter which was 174 in the previous quarter. In the first quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved a revenue of $90.2 billion, representing an increase of 12% from Q1 2024. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOG) 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 Alphabet Inc. (NASDAQ:GOOG) and shared Madison Sustainable Equity Strategy’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 GOOG 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.
