Ace River Capital, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -14.37% in the first quarter, compared to -4.3% and -9.5% returns for the S&P 500 (SPX) and the Russell 2000 (RTY), respectively. The firm’s goal is to maintain a focused portfolio of small and micro-cap companies with distinct advantages and growth potential within their respective sectors. 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, Ace River Capital highlighted stocks such as MarineMax, Inc. (NYSE:HZO). MarineMax, Inc. (NYSE:HZO) is a recreational boat and yacht retailer and superyacht services company. The one-month return of MarineMax, Inc. (NYSE:HZO) was 7.98%, and its shares lost 21.08% of their value over the last 52 weeks. On May 7, 2025, MarineMax, Inc. (NYSE:HZO) stock closed at $20.97 per share with a market capitalization of $450.297 million.

Ace River Capital stated the following regarding MarineMax, Inc. (NYSE:HZO) in its Q1 2025 investor letter:

"MarineMax, Inc. (NYSE:HZO) reported a strong quarter and made substantial share repurchases recently, $12.4MM in Q2 alone. With the cyclical nature of this business, I will consider adding to this position during the trough/recession phase of the business cycle it looks like we are approaching. I expect this position not to produce much until we get to the expansion phase of the cycle."

A large yacht sailing in the open sea with passengers enjoying the sunset.

MarineMax, Inc. (NYSE:HZO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held MarineMax, Inc. (NYSE:HZO) at the end of the fourth quarter, compared to 23 in the third quarter. MarineMax, Inc. (NYSE:HZO) reported strong results in the second quarter of fiscal 2025 with revenue reaching $631.5 million. While we acknowledge the potential of MarineMax, Inc. (NYSE:HZO) 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 cheapest AI stock.

In another article, we covered MarineMax, Inc. (NYSE:HZO) and shared the list of best boating stocks to buy. 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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