Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Large Cap Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -6.49%, net of fees, in the quarter compared to a -4.27% return for the S&P 500 Total Returns Index. In the quarter, the disruptive policies disrupted the economic outlook, and the equity market fell sharply at the end of the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Hardman Johnston Large Cap Equity Strategy highlighted stocks such as Marvell Technology, Inc. (NASDAQ:MRVL). Marvell Technology, Inc. (NASDAQ:MRVL) provides semiconductor solutions for data infrastructure. The one-month return of Marvell Technology, Inc. (NASDAQ:MRVL) was 13.95%, and its shares lost 4.31% of their value over the last 52 weeks. On June 17, 2025, Marvell Technology, Inc. (NASDAQ:MRVL) stock closed at $69.99 per share, with a market capitalization of $60.345 billion.
Hardman Johnston Large Cap Equity Strategy stated the following regarding Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2025 investor letter:
“The portfolio’s off-benchmark position in Marvell Technology, Inc. (NASDAQ:MRVL) contributed negatively with a return of -44.2%. Shares of Marvell came under pressure during the release and subsequent realization of the innovations of the DeepSeek’s R1 model. DeepSeek is a Chinese AI competitor to ChatGPT and other large language models (“LLMs”) that claimed to operate at significantly lower cost. This pressured the entire AI compute and networking supply chain, and, while impressive, we believe the immediate selloff was an overreaction. The compute requirements for reasoning models like R1 should drive greater hardware demand and lower cost, as more accessible AI models should drive up adoption. This pressure was exacerbated by Marvell’s FY4Q results and FY1Q guidance that fell short of exuberant buyside expectations, as Amazon Web Services ramped its Trainium2 custom processor.”
An assembly line in a semiconductor factory, with workers at their stations.
Marvell Technology, Inc. (NASDAQ:MRVL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Marvell Technology, Inc. (NASDAQ:MRVL) at the end of the first quarter, which was 105 in the previous quarter. Marvell Technology, Inc. (NASDAQ:MRVL) reported a record revenue of $1.895 billion in the first quarter of fiscal 2026, marking a 4% sequential increase and strong 63% year-over-year growth. While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ:MRVL) 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 Marvell Technology, Inc. (NASDAQ:MRVL) and shared the list of best American semiconductor stocks to buy. 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 MRVL 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.
