Hinde Group, an investment management company, has released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -0.50% (gross) and -0.87% (net) compared to -4.27% for the S&P 500 Total Return. Upon taking office on January 20, Trump immediately began implementing his policy agenda. The President’s trade policies weighed on financial markets in the quarter. You can check the fund’s top 5 holdings for its best picks for 2025.
In its first-quarter 2025 investor letter, Hinde Group highlighted stocks such as Northeast Bank (NASDAQ:NBN). Northeast Bank (NASDAQ:NBN) offers banking services to individual and corporate customers. The one-month return of Northeast Bank (NASDAQ:NBN) was -1.58%, and its shares gained 45.53% of their value over the last 52 weeks. On June 18, 2025, Northeast Bank (NASDAQ:NBN) stock closed at $82.08 per share, with a market capitalization of $699.762 million.
Hinde Group stated the following regarding Northeast Bank (NASDAQ:NBN) in its Q1 2025 investor letter:
“Northeast Bank (NASDAQ:NBN) is a Maine state-chartered bank with $4.2 billion of assets and $468 million of equity as of March 31st. Led by industry veteran Rick Wayne, Northeast Bank originates and purchases commercial real estate loans nationwide. Wayne executed a similar strategy for nearly two decades as CEO of Capital Crossing Bank, a bank he founded with a partner in 1988, took public in 1996, and sold to Lehman Brothers in 2007 for nearly ten times its IPO price.
Trump’s trade war will have only indirect effects on banks in general, but indirect does not necessarily mean immaterial. Weaker economic growth will slow loan originations and increase credit losses to some extent. The creditworthiness of borrowers in industries directly impacted by the new tariffs will deteriorate, increasing eventual credit losses for their lenders. The creditworthiness of many households will suffer too as those households struggle to maintain their standard of living in the face of higher prices. Consumer loans will perform worse than they otherwise would. Finally, any decrease in the expected path of the federal funds rate due to a weaker economic outlook could put pressure on net interest spreads and margins for asset sensitive banks…” (Click here to read the full text)
A customer using the bank’s mobile banking service, enabling them to access their money from anywhere.
Northeast Bank (NASDAQ:NBN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Northeast Bank (NASDAQ:NBN) at the end of the first quarter, which was 18 in the previous quarter. While we acknowledge the potential of Northeast Bank (NASDAQ:NBN) 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 NBN 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.
