Here’s Recurve Capital Partners’ Update on Cogent Communications Holdings (CCOI)

Recurve Capital, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter was a volatile start to the year for the company. In Q1 2025, the fund returned -12.7% gross and -13% for Class A investors compared to -4.6% returns for the S&P 500 and -10.4% returns for the Nasdaq. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Recurve Capital highlighted stocks such as Cogent Communications Holdings, Inc. (NASDAQ:CCOI). Cogent Communications Holdings, Inc. (NASDAQ:CCOI) provides high-speed Internet access, private network, and data center colocation space services. The one-month return of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was -14.21%, and its shares lost 21.53% of their value over the last 52 weeks. On May 22, 2025, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) stock closed at $45.90 per share with a market capitalization of $2.265 billion.

Recurve Capital stated the following regarding Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in its Q1 2025 investor letter:

“Let’s zoom in on Cogent Communications Holdings, Inc. (NASDAQ:CCOI), one of our worst performers YTD – an unfortunate and surprising fact given the utility-like nature of its business model that almost completely dodges tariffs. Cogent is down idiosyncratically. I

 have spent thousands of hours studying and researching Cogent since the Sprint acquisition was announced. At this point, I am confident that I’ve done enough work to validate that Cogent’s new wavelength network operates and scales as advertised. Real, large customers are using it and more are onboarding every day. What Cogent has accomplished is remarkable and unprecedented in its industry. If you want to find a company that is built different and that builds infrastructure differently in its industry, this is a great case study.

If it’s been such an amazing story, why is the stock down so much? I think there are a few primary reasons: All the work has been happening under the hood and has not yet translated into acceleration. The sequencing of this effort shifted and has been communicated poorly based on a priori assumptions that did not prove to be true. It was originally communicated as:..” (Click here to read the full text)

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Cogent Communications Holdings, Inc. (NASDAQ:CCOI) at the end of the fourth quarter compared to 27 in the third quarter. While we acknowledge the potential of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) 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 Cogent Communications Holdings, Inc. (NASDAQ:CCOI) and shared the list of best telecom stocks to buy according to hedge funds. In its Q4 2024 investor letter, Recurve Capital highlighted Cogent Communications Holdings, Inc.’s (NASDAQ:CCOI) long term success in connectivity markets. 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.