Prosper Stars & Stripes, a long/short equity fund, recently released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund underperformed and generated a net return of -9.7% compared to a total return of -9.5% for the long-only small cap Russell 2000 Index (the “Russell”), and a total return of 0.2% for the long/short equity hedge fund peer group represented by the HFRX Equity Hedge Index (the “HFRX”). A combination of factors led the composite to underperform compared to its net exposure at the start of the year. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Prosper Stars & Stripes Fund highlighted stocks such as Insight Enterprises, Inc. (NASDAQ:NSIT). Insight Enterprises, Inc. (NASDAQ:NSIT) offers information technology, hardware, software, and services. The one-month return of Insight Enterprises, Inc. (NASDAQ:NSIT) was -3.39%, and its shares lost 35.76% of their value over the last 52 weeks. On June 16, 2025, Insight Enterprises, Inc. (NASDAQ:NSIT) stock closed at $131.72 per share, with a market capitalization of $4.206 billion.
Prosper Stars & Stripes Fund stated the following regarding Insight Enterprises, Inc. (NASDAQ:NSIT) in its Q1 2025 investor letter:
“Additionally, we continue to see pressure on consulting firms due to the combination of expense reductions from the government and corporations, given the uncertain outlook, along with longer term questions on the value of consulting as artificial intelligence (“AI”) tools continue to improve. An example of a company we see at risk is Insight Enterprises, Inc. (NASDAQ:NSIT). NSIT implements hardware and software and has already seen top line pressure develop before the marked increase that occurred this quarter. We believe incremental headwinds will weigh on the stock when they report their first quarter and provide an update to their 2025 outlook.”
A professional at a computerscreen, working on a complex hardware solution.
Insight Enterprises, Inc. (NASDAQ:NSIT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Insight Enterprises, Inc. (NASDAQ:NSIT) at the end of the first quarter, which was 26 in the previous quarter. Insight Enterprises, Inc. (NASDAQ:NSIT) generated net revenue of $2.1 billion in the first quarter of 2025, marking a 12% decline from Q1 2024. While we acknowledge the potential of Insight Enterprises, Inc. (NASDAQ:NSIT) 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 Insight Enterprises, Inc. (NASDAQ:NSIT) and shared billionaire Mason Morfit’s stock picks with highest upside potential. 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 NSIT 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.
