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 Cannae Holdings, Inc. (NYSE:CNNE). Cannae Holdings, Inc. (NYSE:CNNE) is a principal investment firm. The one-month return of Cannae Holdings, Inc. (NYSE:CNNE) was 3.87%, and its shares lost 13.96% of their value over the last 52 weeks. On May 12, 2025, Cannae Holdings, Inc. (NYSE:CNNE) stock closed at $18.80 per share with a market capitalization of $1.131 billion.

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

"Exited: Cannae Holdings, Inc. (NYSE:CNNE) - sold CNNE on weakness, with lower confidence in the ability of the various holdings in the company (Dun and Bradstreet and ALIT account for most of the value) to generate solid results over time. We maintained a position in CNNE in the small/mid cap portfolio."

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Cannae Holdings, Inc. (NYSE:CNNE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Cannae Holdings, Inc. (NYSE:CNNE) at the end of the fourth quarter which was 28 in the previous quarter. While we acknowledge the potential of Cannae Holdings, Inc. (NYSE:CNNE) 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 Cannae Holdings, Inc. (NYSE:CNNE) and shared the list of top restaurant stocks to buy under $20. 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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