Recurve Capital, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter was a volatile start to the year for the company. In Q1 2025, the fund returned -12.7% gross and -13% for Class A investors compared to -4.6% returns for the S&P 500 and -10.4% returns for the Nasdaq. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its first-quarter 2025 investor letter, Recurve Capital highlighted stocks such as Cogent Communications Holdings, Inc. (NASDAQ:CCOI). Cogent Communications Holdings, Inc. (NASDAQ:CCOI) provides high-speed Internet access, private network, and data center colocation space services. The one-month return of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) was -14.21%, and its shares lost 21.53% of their value over the last 52 weeks. On May 22, 2025, Cogent Communications Holdings, Inc. (NASDAQ:CCOI) stock closed at $45.90 per share with a market capitalization of $2.265 billion.

Recurve Capital stated the following regarding Cogent Communications Holdings, Inc. (NASDAQ:CCOI) in its Q1 2025 investor letter:

"Let’s zoom in on Cogent Communications Holdings, Inc. (NASDAQ:CCOI), one of our worst performers YTD – an unfortunate and surprising fact given the utility-like nature of its business model that almost completely dodges tariffs. Cogent is down idiosyncratically. I

An aerial view of an internet exchange point, illustrating the importance of an online service provider.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Cogent Communications Holdings, Inc. (NASDAQ:CCOI) at the end of the fourth quarter compared to 27 in the third quarter. While we acknowledge the potential of Cogent Communications Holdings, Inc. (NASDAQ:CCOI) 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.

Story Continues

In another article, we covered Cogent Communications Holdings, Inc. (NASDAQ:CCOI) and shared the list of best telecom stocks to buy according to hedge funds. In its Q4 2024 investor letter, Recurve Capital highlighted Cogent Communications Holdings, Inc.'s (NASDAQ:CCOI) long term success in connectivity markets. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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