Kingdom Capital Advisors, a private investment firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Kingdom Capital Advisors (KCA Value Composite) returned -7.08% (net of fees), compared to -9.48% for the Russell 2000 TR, -4.27% for the S&P 500 TR, and -8.07% for the NASDAQ 100 TR. Investors and international leaders grappled with Trump’s increasing tariffs in Q1. Markets speculated on long-term business impacts, with initial market verdicts being harsh. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Kingdom Capital Advisors highlighted stocks such as Net Lease Office Properties (NYSE:NLOP). Net Lease Office Properties (NYSE:NLOP) is a publicly traded real estate investment trust. The one-month return of Net Lease Office Properties (NYSE:NLOP) was 8.01%, and its shares gained 33.60% of their value over the last 52 weeks. On June 18, 2025, Net Lease Office Properties (NYSE:NLOP) stock closed at $33.04 per share, with a market capitalization of $489.458 million.
Kingdom Capital Advisors stated the following regarding Net Lease Office Properties (NYSE:NLOP) in its Q1 2025 investor letter:
“Our other positions are less sensitive to tariff impacts. Fortunately for Net Lease Office Properties (NYSE:NLOP), you can’t import suburban office buildings. NLOP is marketing their best asset (on a $/sq ft basis) in Venice Beach, which was announced days before the end of Q1. I expect the Google office to sell for $50m or so, which will be enough to begin distributions to shareholders. NLOP also extended a lease with JP Morgan in Tampa that was previously set to expire, once again extending the runway of assets that were priced with no terminal value. One of the stated goals from recent interviews with Secretary Bessent is to reduce interest rates and deregulate small banks, which we hope will provide the juice NLOP needs to attract new buyers & financing for their remaining buildings.”
Net Lease Office Properties (NYSE:NLOP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Net Lease Office Properties (NYSE:NLOP) at the end of the first quarter, which was 18 in the previous quarter. While we acknowledge the potential of Net Lease Office Properties (NYSE:NLOP) 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 Net Lease Office Properties (NYSE:NLOP) and shared Kingdom Capital Advisors’ views on the company. 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 NLOP 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.
