The London Company, an investment management company, released “The London Company Small Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a correction in 1Q25 due to macro risks, weak economic growth, and inflation. The fund declined 6.9% (-7.1%, net) compared to a 9.5% decrease in the Russell 2000 Index. The positive impact of stock selection contributed to the strategy's relative performance in the quarter, partially offset by sector exposure. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as DoubleVerify Holdings, Inc. (NYSE:DV). DoubleVerify Holdings, Inc. (NYSE:DV) is a software platform provider for digital media measurement and data analytics. The one-month return of DoubleVerify Holdings, Inc. (NYSE:DV) was 18.35%, and its shares lost 23.46% of their value over the last 52 weeks. On May 12, 2025, DoubleVerify Holdings, Inc. (NYSE:DV) stock closed at $14.26 per share with a market capitalization of $2.342 billion.

The London Company Small Cap Strategy stated the following regarding DoubleVerify Holdings, Inc. (NYSE:DV) in its Q1 2025 investor letter:

"DoubleVerify Holdings, Inc. (NYSE:DV) - DV shares were weak due to customer-specific issues, as pullbacks from major global brand clients with large ad budgets heavily impacted growth. We remain optimistic about DV's near-term stabilization, driven by a high-profile product launch earlier this year and emerging cross-sell opportunities, bolstered by its strong competitive position in a favorable market structure that supports profitable long-term growth."

DoubleVerify Holdings, Inc. (NYSE:DV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held DoubleVerify Holdings, Inc. (NYSE:DV) at the end of the fourth quarter which was 33 in the previous quarter. DoubleVerify Holdings, Inc. (NYSE:DV) generated total revenue of $165 million in Q1 2025, reflecting an increase of 17% year over year. While we acknowledge the potential of DoubleVerify Holdings, Inc. (NYSE:DV) 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.

Story Continues

In another article, we covered DoubleVerify Holdings, Inc. (NYSE:DV) and shared the list of affordable tech stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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