Palm Valley Capital Management, an investment management firm, released the “Palm Valley Capital Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, Palm Valley Capital Fund appreciated 0.57% compared to an 8.93% decline in the S&P SmallCap 600 and a 6.08% drop in the Morningstar Small Cap Total Return Index. Cash was 77.6% of Fund assets at the start of the quarter and 76.5% at the conclusion. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first quarter 2025 investor letter, Palm Valley Capital Fund emphasized stocks such as Heartland Express, Inc. (NASDAQ:HTLD). Heartland Express, Inc. (NASDAQ:HTLD) is a short-to-medium, and long-haul truckload carrier. The one-month return of Heartland Express, Inc. (NASDAQ:HTLD) was -11.11%, and its shares lost 20.43% of their value over the last 52 weeks. On April 4, 2025, Heartland Express, Inc. (NASDAQ:HTLD) stock closed at $8.51 per share with a market capitalization of $675.932 million.

Palm Valley Capital Fund stated the following regarding Heartland Express, Inc. (NASDAQ:HTLD) in its Q1 2025 investor letter:

"During the period, we added to our weightings in Kelly Services (ticker: KELYA), Resources Connection (ticker: RGP), and Heartland Express, Inc. (NASDAQ:HTLD). We increased our exposure to Heartland Express on share price weakness. The business continues to generate free cash flow, and we believe the trucking industry will recover from its cyclical trough."

A truckload carrier negotiating a challenging terrain, reflecting the company's expertise in short-to-medium haul truckload.

Heartland Express, Inc. (NASDAQ:HTLD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database,19 hedge fund portfolios held Heartland Express, Inc. (NASDAQ:HTLD) at the end of the fourth quarter which was 15 in the previous quarter. While we acknowledge the potential of Heartland Express, Inc. (NASDAQ:HTLD) 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.

We covered Heartland Express, Inc. (NASDAQ:HTLD) in another article, where we shared Palm Valley Capital Fund's views on the company in the previous 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.

Story Continues

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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

View Comments