Long Cast Advisers, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund’s cumulative net returns declined by 20%. The fund returned a cumulative 196% net of fees, or 12% CAGR, since its inception in November 2015 through the quarter-end of Q1 2025. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Long Cast Advisers highlighted stocks such as Research Solutions, Inc. (NASDAQ:RSSS). Headquartered in Henderson, Nevada, Research Solutions, Inc. (NASDAQ:RSSS) offers a cloud-based software-as-a-service research platform. The one-month return of Research Solutions, Inc. (NASDAQ:RSSS) was -7.37%, and its shares gained 6.02% of their value over the last 52 weeks. On June 16, 2025, Research Solutions, Inc. (NASDAQ:RSSS) stock closed at $2.64 per share, with a market capitalization of $85.691 million.
Long Cast Advisers stated the following regarding Research Solutions, Inc. (NASDAQ:RSSS) in its Q1 2025 investor letter:
“Of our material positions, Research Solutions, Inc. (NASDAQ:RSSS) looks on its surface to be most vulnerable to executive orders cutting funding to research and science since it serves that industry. The company also faces headwinds from difficult year over year comparisons given that it has fully “lapped” the Scite acquisition, which has been a tremendous driver of recent growth and cash flow. (Last year, revenues grew 90%. They will certainly grow more slowly this year.)
Our concerns are offset by the long-term opportunities, which I think reasonably puts it within high probability of a five year double. The management team is capable and experienced. Since January, the company has been investing to re-align, re-organize and re-train its sales force around new Scite features. These efforts are already visible on the income statement via the recent step up in gross profit and more dramatically on the balance sheet via new highs in deferred revenues, which represents expected future sales. Cash operating costs have grown slower than gross profit – a sign of managerial acuity – and importantly, the company has substantial NOL’s (generated under prior management) that will shield profits for several years…” (Click here to read the full text)
A closeup of a software engineer showing the complexity of software development.
Research Solutions, Inc. (NASDAQ:RSSS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Research Solutions, Inc. (NASDAQ:RSSS) at the end of the first quarter, which was 8 in the previous quarter. While we acknowledge the potential of Research Solutions, Inc. (NASDAQ:RSSS) 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 Research Solutions, Inc. (NASDAQ:RSSS) and shared the list of AI news and ratings making waves on Wall Street. 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 RSSS 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.
