Renaissance Investment Management, an investment management company, released its Q1 2025 “International Small Cap Equity Strategy” investor letter. A copy of the letter can be downloaded here. International equities began the year positively, recording strong gains despite increased geopolitical and tariff risks. Investors rotate away from US stocks due to concerns over the weakening US economy, which enabled international equities to achieve their best quarter. Decline in the U.S. Dollar Index offered additional support to international equities. However, the portfolio returns were negative on both an absolute basis and relative to the benchmark in the first quarter. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Renaissance International Small Cap Equity Strategy highlighted stocks such as Tecnoglass Inc. (NYSE:TGLS). Tecnoglass Inc. (NYSE:TGLS) designs, manufactures, markets, and installs architectural glass, windows, and associated aluminum products. The one-month return of Tecnoglass Inc. (NYSE:TGLS) was -11.20%, and its shares gained 78.20% of their value over the last 52 weeks. On June 18, 2025, Tecnoglass Inc. (NYSE:TGLS) stock closed at $75.22 per share, with a market capitalization of $3.534 billion.
Renaissance International Small Cap Equity Strategy stated the following regarding Tecnoglass Inc. (NYSE:TGLS) in its Q1 2025 investor letter:
“Conversely, we sold our position in Tecnoglass Inc. (NYSE:TGLS) (Colombia). Although the window manufacturer should be able to grow as it expands geographically to new states in the U.S., its business model is built on low-cost production of windows in Colombia, putting it at the mercy of unpredictable U.S. trade policies.”
A construction crew building a modern, energy-efficient skyscraper with a curtain wall of aluminum.
Tecnoglass Inc. (NYSE:TGLS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Tecnoglass Inc. (NYSE:TGLS) at the end of the first quarter, which was 17 in the previous quarter. While we acknowledge the potential of Tecnoglass Inc. (NYSE:TGLS) 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 TGLS 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.
