Kathmandu Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 17.22% gross of fees and 16.64% net of fees compared to 10.56% for the Standard & Poor’s 500 Total Return Index and 11.52% for the MSCI ACWI Total Return benchmark. The portfolio experienced a ~30% swing over the past quarter, due to heightened market volatility stemming from tariff worries. Despite these worries, the portfolio delivered positive results driven by capital flows seeking opportunities outside the U.S. and a rebound in domestic equities as tariff worries began to ease. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Kathmandu Capital highlighted stocks such as Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB). Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is an airport operator in Mexico. The one-month return of Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) was -4.82%, and its shares gained 63.48% of their value over the last 52 weeks. On August 12, 2025, Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) stock closed at $107.72 per share, with a market capitalization of $5.084 billion.
Kathmandu Capital stated the following regarding Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) in its second quarter 2025 investor letter:
“Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is a leading airport operator in Mexico, founded in 1998 as part of the country’s airport privatization initiative. The company operates 13 airports under a 50-year concession granted by the Ministry of Communications and Transportation (SCT), with the possibility of a 50-year extension. Under this agreement, OMAB must pay a concession tax (up recently from 5% to 9% of gross revenue beginning in 2024), provide continuous and non-discriminatory services, maintain infrastructure, and fulfill investment obligations under its Master Development Program (MDP). These MDPs are reviewed every five years, during which the SCT establishes minimum capital spending requirements for the next period.
Our investment thesis for OMAB is threefold. First, airports are typically considered regional monopolies because they are the exclusive providers of aviation infrastructure within a given geographic area. High capital requirements, strict regulatory frameworks, land constraints, and environmental concerns make it impractical to build competing airports. This structural exclusivity creates substantial and durable barriers to entry. Airlines and passengers are also captive to use the existing facility, making the business especially sticky with pricing power.”
A daytime aerial view of an airport bustling with planes and staff.
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) at the end of the first quarter, which was 31 in the previous quarter. While we acknowledge the risk and potential of Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
