Ariel Investments, an investment management company, released its “Ariel Global Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2025, investors challenged the idea of “American exceptionalism.” After record highs in January, U.S. markets fell due to tariff fears and policy uncertainty, with the Magnificent Seven dropping nearly 15% due to concerns over America’s AI leadership. Meanwhile, international equity markets outperformed the U.S. in their strongest quarterly showing in 15 years. Against this backdrop, the Ariel Global fund traded +6.31% higher in the quarter, compared to the -1.32% return of its primary benchmark, the MSCI ACWI Index, and the +4.77% return of its secondary benchmark, the MSCI ACWI Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Ariel Global Fund highlighted stocks such as Teradata Corporation (NYSE:TDC). Teradata Corporation (NYSE:TDC) provides a connected multi-cloud data platform for enterprise analytics. The one-month return of Teradata Corporation (NYSE:TDC) was -1.51%, and its shares lost 32.74% of their value over the last 52 weeks. On June 17, 2025, Teradata Corporation (NYSE:TDC) stock closed at $22.15 per share with a market capitalization of $2.118 billion.
Ariel Global Fund stated the following regarding Teradata Corporation (NYSE:TDC) in its Q1 2025 investor letter:
“Lastly, American software company, Teradata Corporation (NYSE:TDC) fell during the period following disappointing quarterly earnings results and weaker-than-expected 2025 guidance as its cloud business continues to struggle. As a result, we exited the name to pursue more compelling opportunities.”
An engineer working on a computer monitor, indicating the importance of analytical solutions.
Teradata Corporation (NYSE:TDC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Teradata Corporation (NYSE:TDC) at the end of the first quarter, which was 26 in the previous quarter. Teradata Corporation (NYSE:TDC) reported revenue of $418 million in the first quarter of 2025, marking a 10% decrease year-over-year. While we acknowledge the potential of Teradata Corporation (NYSE:TDC) 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 Teradata Corporation (NYSE:TDC) and shared the list of undervalued quantum computing 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 TDC 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.
