Here’s How TriMas Corp (TRS) Benefits from Modernization of US Defense Industry

Prosper Stars & Stripes, a long/short equity fund, recently released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund underperformed and generated a net return of -9.7% compared to a total return of -9.5% for the long-only small cap Russell 2000 Index (the “Russell”), and a total return of 0.2% for the long/short equity hedge fund peer group represented by the HFRX Equity Hedge Index (the “HFRX”). A combination of factors led the composite to underperform compared to its net exposure at the start of the year. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Prosper Stars & Stripes Fund highlighted stocks such as TriMas Corporation (NASDAQ:TRS). TriMas Corporation (NASDAQ:TRS) engages in the production and distribution of products for consumer products, aerospace, and industrial markets. The one-month return of TriMas Corporation (NASDAQ:TRS) was 4.73%, and its shares gained 5.54% of their value over the last 52 weeks. On June 16, 2025, TriMas Corporation (NASDAQ:TRS) stock closed at $27.04 per share, with a market capitalization of $1.0995 billion.

Prosper Stars & Stripes Fund stated the following regarding TriMas Corporation (NASDAQ:TRS) in its Q1 2025 investor letter:

“We also continue to identify stocks with corporate change. A recent example is TriMas Corporation (NASDAQ:TRS). TRS has signaled they are considering asset sales to align focus in the business. Management and board changes as well as insider buying signal conviction is behind these changes and we believe the actions have potential to unlock value in 2025.”

TriMas Corporation (TRS): Among Small-Cap Stocks Insiders Were Buying in Q1 2025

Aerial view of a production line of the company’s award-winning packaging products.

TriMas Corporation (NASDAQ:TRS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held TriMas Corporation (NASDAQ:TRS) at the end of the first quarter, which was 13 in the previous quarter. While we acknowledge the potential of TriMas Corporation (NASDAQ:TRS) 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 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 TRS 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.