Qualivian Investment Partner Sold Murphy USA (MUSA) as its Financial Performance Misses Target

Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 66.0% and 59.4% on a gross and net basis, since inception through March 31, 2025. It also exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis. In Q1 2025, the fund outperformed QUAL by 5.3% and 5.2% on a gross and net basis, and we outperformed the S&P 500 by 5.2% and 5.1% on a gross and net basis. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Qualivian Investment Partners highlighted stocks such as Murphy USA Inc. (NYSE:MUSA). Murphy USA Inc. (NYSE:MUSA) operates retail stores that market retail motor fuel products and convenience merchandise. The one-month return of Murphy USA Inc. (NYSE:MUSA) was -4.76%, and its shares lost 11.54% of their value over the last 52 weeks. On June 30, 2025, Murphy USA Inc. (NYSE:MUSA) stock closed at $406.80 per share, with a market capitalization of $8.039 billion.

Qualivian Investment Partners stated the following regarding Murphy USA Inc. (NYSE:MUSA) in its Q1 2025 investor letter:

“We also sold out of Murphy USA Inc. (NYSE:MUSA). MUSA is a leading retailer of gasoline and convenience store merchandise with 1,700 locations across 27 states. We purchased it due its clear niche (low-cost gasoline and convenience products), its rewards program that encouraged customer retention, its relationship with Walmart, its high returns on capital, and solid free cash generation which it used to buy back over 55% of its outstanding shares over the last ten years. However, its earnings and revenue growth did not meet our expectations.”

An exterior view of an illuminated gas station at night, surrounded by cars.

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