Silver Beech Capital, a value-oriented investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Since its inception, Silver Beech has achieved a net annualized return of 20.3%, representing an annualized outperformance of 9.2% over the S&P 500. The fund was down 2.8% for the first quarter, exceeding the S&P 500’s 4.3% decline and the Russell 2000’s 9.5% decline. Recent market turbulence has led to notable risk repricing across various markets. This volatility arose from deep uncertainty surrounding multiple potential U.S. policy regimes, including trade, fiscal policies, the status of the U.S. reserve currency, and central bank principles. 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, Silver Beech Capital highlighted stocks such as Brookfield Corporation (NYSE:BN). Brookfield Corporation (NYSE:BN) is an alternative asset manager and REIT/Real Estate Investment Manager firm. The one-month return of Brookfield Corporation (NYSE:BN) was -0.76%, and its shares gained 41.55% of their value over the last 52 weeks. On June 16, 2025, Brookfield Corporation (NYSE:BN) stock closed at $58.53 per share with a market capitalization of $89.767 billion.
Silver Beech Capital stated the following regarding Brookfield Corporation (NYSE:BN) in its Q1 2025 investor letter:
“Portfolio Update: during the first quarter, we exited our successful investment in Brookfield Corporation (NYSE:BN), a position which we detailed in our fourth quarter of 2023 investor letter and, more recently, our third quarter of 2024 investor letter. Our investment thesis was predicated on the market’s underappreciation of the company’s corporate simplification and the intrinsic value of its world-class asset management segment and other holdings.
The partial realization of our thesis, coupled with broader market enthusiasm in the alternative asset management sector, accelerated the realization of our targeted returns. Our investment in Brookfield generated a ~52% gross IRR and ~71% total return. We continue to hold Brookfield’s prospects and management in high regard, however our disciplined process dictated that we reallocate capital to more compelling opportunities.”
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Brookfield Corporation (NYSE:BN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Brookfield Corporation (NYSE:BN) at the end of the first quarter, which was 37 in the previous quarter. While we acknowledge the potential of Brookfield Corporation (NYSE:BN) 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 Brookfield Corporation (NYSE:BN) and shared Baron Real Estate Fund’s 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 BN 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.
