Is Americold Realty Trust (COLD) a Resilient Business?

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 Americold Realty Trust, Inc. (NYSE:COLD). Americold Realty Trust, Inc. (NYSE:COLD) provides temperature-controlled logistics real estate and value-added services. The one-month return of Americold Realty Trust, Inc. (NYSE:COLD) was -4.51%, and its shares lost 31.82% of their value over the last 52 weeks. On June 12, 2025, Americold Realty Trust, Inc. (NYSE:COLD) stock closed at $17.38 per share, with a market capitalization of $4.965 billion.

Prosper Stars & Stripes Fund stated the following regarding Americold Realty Trust, Inc. (NYSE:COLD) in its Q1 2025 investor letter:

“The Composite has a number of other long investments that seek to take advantage of the current backdrop and has increased its mix of longs with defensive characteristics. For example, Americold Realty Trust, Inc. (NYSE:COLD) is a real estate investment trust (“REIT”) that leases space for fresh food commerce. We believe this business to be resilient in general and to benefit from trends towards healthier eating. We believe the management changes that were made are having a positive impact on the business.”

Is Americold Realty Trust Inc. (COLD) the Best Warehouse and Self-Storage Stock to Buy Now?

An interior of a modern temperature-controlled warehouse with industrial shelving units and workers in motion.

Americold Realty Trust, Inc. (NYSE:COLD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Americold Realty Trust, Inc. (NYSE:COLD) at the end of the first quarter, which was 27 in the previous quarter. While we acknowledge the potential of Americold Realty Trust, Inc. (NYSE:COLD) 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 COLD 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.