Stride (LRN) Delivered Robust Results in Q1 Amid Volatility

Janus Henderson Investors, an investment management company, released its “Janus Henderson Venture Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -8.61% in the first quarter, compared to the Russell 2000 Growth Index’s -11.12% return. Stock selection in the consumer discretionary sector contributed to the fund’s relative performance in the quarter, while selection in healthcare detracted. Stocks declined in the quarter as the uncertainty over tariffs and other Trump administration policies dampened the optimism that had driven momentum in the fourth quarter of 2024. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Janus Henderson Venture Fund highlighted stocks such as Stride, Inc. (NYSE:LRN). Stride, Inc. (NYSE:LRN) is a technology-based education service company. The one-month return of Stride, Inc. (NYSE:LRN) was -1.46%, and its shares gained 105.77% of their value over the last 52 weeks. On July 1, 2025, Stride, Inc. (NYSE:LRN) stock closed at $141.55 per share, with a market capitalization of $6.161 billion.

Janus Henderson Venture Fund stated the following regarding Stride, Inc. (NYSE:LRN) in its Q1 2025 investor letter:

We were pleased to see a number of our holdings deliver solid positive performance despite a challenging market backdrop. Relative contributors include Stride, Inc. (NYSE:LRN), an education technology company that provides a remote learning platform for both K-12 education and professional training and recertification. After reporting strong enrollment growth for its education platform in the critical fall quarter, Stride has continued to attract additional students over the course of the academic year, while maintaining high retention rates. These trends have supported strong revenue growth, while attesting to the quality of its educational resources and the value proposition it offers families seeking more flexible education options. We also believe its career learning offerings may be positioned for increased demand if a slowing economy leads to more layoffs and career transitions.

Stride, Inc. (NYSE:LRN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Stride, Inc. (NYSE:LRN) at the end of the first quarter, which was 33 in the previous quarter. While we acknowledge the potential of Stride, Inc. (NYSE:LRN) 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 Stride, Inc. (NYSE:LRN) and shared the list of stocks Jim Cramer put under the microscope. 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 LRN 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.