Here’s Why WNS (Holdings) Limited (WNS) Rebounded in Q1

Diamond Hill Capital, an investment management company, released its “Long-Short Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The market was mixed in the first quarter of 2025, due to the uncertainty caused by the new administration’s avalanche of activity. However, the portfolio outperformed the Russell 1000 Index and the blended benchmark (60% Russell 1000 Index/40% Bloomberg US Treasury Bills 1-3 Month Index) in the quarter. In Q1, both long and short books generated relative tailwinds, with the short book underperforming the index, while the long book was positive, despite the index being negative. In addition, you may look at the fund’s top 5 holdings to learn about its best picks in 2025.

In its first-quarter 2025 investor letter, Diamond Hill Long-Short Strategy highlighted stocks such as WNS (Holdings) Limited (NYSE:WNS). Headquartered in Mumbai, India, WNS (Holdings) Limited (NYSE:WNS) is a business process management (BPM) company. The one-month return of WNS (Holdings) Limited (NYSE:WNS) was 1.71%, and its shares gained 16.53% of their value over the last 52 weeks. On June 23, 2025, WNS (Holdings) Limited (NYSE:WNS) stock closed at $58.16 per share, with a market capitalization of $2.537 billion.

Diamond Hill Long-Short Strategy stated the following regarding WNS (Holdings) Limited (NYSE:WNS) in its Q1 2025 investor letter:

“On an individual holdings’ basis, top contributors to return in Q1 included several positions from our long book, including American International Group (AIG), WNS (Holdings) Limited (NYSE:WNS) and VeriSign. Business process management company WNS indicated it expects to return to steady, predictable growth following several quarters of uncharacteristically volatile fundamentals, giving a boost to shares in the quarter.”

Is WNS (Holdings) Limited (WNS) Mid-Cap IT Stock Outperforming The Market In 2025?

An IT professional working with a laptop in a modern, urban office.

WNS (Holdings) Limited (NYSE:WNS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held WNS (Holdings) Limited (NYSE:WNS) at the end of the first quarter, which was 19 in the previous quarter. While we acknowledge the potential of WNS (Holdings) Limited (NYSE:WNS) 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 WNS (Holdings) Limited (NYSE:WNS) and shared a list of the tech stocks that have risen the most so far in 2025. 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 WNS 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.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.