Silver Beech Capital, a value-oriented investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Since its inception, Silver Beech has achieved a net annualized return of 20.3%, representing an annualized outperformance of 9.2% over the S&P 500. The fund was down 2.8% for the first quarter, exceeding the S&P 500’s 4.3% decline and the Russell 2000’s 9.5% decline. Recent market turbulence has led to notable risk repricing across various markets. This volatility arose from deep uncertainty surrounding multiple potential U.S. policy regimes, including trade, fiscal policies, the status of the U.S. reserve currency, and central bank principles. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Silver Beech Capital highlighted stocks such as First Industrial Realty Trust, Inc. (NYSE:FR). First Industrial Realty Trust, Inc. (NYSE:FR) is a US-based owner, operator, developer, and acquirer of logistics properties. The one-month return of First Industrial Realty Trust, Inc. (NYSE:FR) was -2.60%, and its shares gained 3.05% of their value over the last 52 weeks. On June 16, 2025, First Industrial Realty Trust, Inc. (NYSE:FR) stock closed at $49.03 per share, with a market capitalization of $6.692 billion.
Silver Beech Capital stated the following regarding First Industrial Realty Trust, Inc. (NYSE:FR) in its Q1 2025 investor letter:
“First Industrial Realty Trust, Inc. (NYSE:FR): For over a decade, the logistics real estate sector has been a top-performing asset class, powered by profound and durable shifts in the American economy. Logistics properties, which are essential for storing, sorting, and delivering goods, form a mission-critical component of the modern supply chain. This importance has fueled strong, long-term demand driven by the structural rise of e-commerce and, to a lesser extent, the reindustrialization of certain U.S. manufacturing sectors.
This sustained demand has given property owners significant pricing power, with logistics rents growing at a ~7% compound annual growth rate (CAGR), approximately doubling since 2015. Because rent typically accounts for only 3%-6% of a tenant’s total supply chain costs, landlords have an outsized ability to increase rents, capturing a large share of the productivity gains from automation and other efficiencies. The continued consumer demand for faster delivery, evidenced by a 65% year-over-year increase in Amazon Prime’s same-day and overnight deliveries in 2024, ensures that demand for well located logistics space remains robust…” (Click here to read the full text)
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First Industrial Realty Trust, Inc. (NYSE:FR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held First Industrial Realty Trust, Inc. (NYSE:FR) at the end of the first quarter, which was 46 in the previous quarter. While we acknowledge the potential of First Industrial Realty Trust, Inc. (NYSE:FR) 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 FR 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.
