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 United Natural Foods, Inc. (NYSE:UNFI). United Natural Foods, Inc. (NYSE:UNFI) distributes natural, organic, specialty, produce, and conventional grocery and non-food products. The one-month return of United Natural Foods, Inc. (NYSE:UNFI) was -27.48%, and its shares gained 57.13% of their value over the last 52 weeks. On June 18, 2025, United Natural Foods, Inc. (NYSE:UNFI) stock closed at $21.48 per share, with a market capitalization of $1.301 billion.
Kingdom Capital Advisors stated the following regarding United Natural Foods, Inc. (NYSE:UNFI) in its Q1 2025 investor letter:
“We love the counter-cyclical exposure of United Natural Foods, Inc. (NYSE:UNFI) to grocery trade-down from restaurants. There are two potential tailwinds we believe the market is missing. One is proposed restrictions on SNAP spending on “junk” food, pushing $8B of monthly government assistance towards UNFI’s categories. The other is a looming contract expiration KeHe has with Sprouts Farmers Market, which covers about $2B of annual revenue. UNFI is the backup supplier and could stand to benefit from increased volumes if they can win more of the renewal. Even without gaining steam. As they currently stand, tariffs on food imports and packaging will accelerate food inflation, which is beneficial for UNFI.”
A close-up view of organic fruits and vegetables in a local retail store.
United Natural Foods, Inc. (NYSE:UNFI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held United Natural Foods, Inc. (NYSE:UNFI) at the end of the first quarter, which was 28 in the previous quarter. In the fiscal third quarter of 2025, United Natural Foods, Inc.’s (NYSE:UNFI) sales grew by 7.5% to nearly $8.1 billion. While we acknowledge the potential of United Natural Foods, Inc. (NYSE:UNFI) 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 United Natural Foods, Inc. (NYSE:UNFI) and shared the list of best food stocks to buy under $30. United Natural Foods, Inc. (NYSE:UNFI) was a key contributor to Kingdom Capital Advisors in the last quarter. 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 UNFI 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.
