Andvari Associates, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter the fund returned 7.2% net of fees compared to the SPDR S&P 500 ETF’s 4.3% decline. 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, Andvari Associates emphasized stocks such as Pool Corporation (NASDAQ:POOL). Pool Corporation (NASDAQ:POOL) is a distributor of swimming pool supplies, equipment, and related leisure products. The one-month return of Pool Corporation (NASDAQ:POOL) was -6.70%, and its shares lost 19.70% of their value over the last 52 weeks. On April 10, 2025, Pool Corporation (NASDAQ:POOL) stock closed at $305.30 per share with a market capitalization of $11.515 billion.

Andvari Associates stated the following regarding Pool Corporation (NASDAQ:POOL) in its Q1 2025 investor letter:

"Andvari also owns two companies that are distributors of physical goods: O’Reilly Auto Parts and Pool Corporation (NASDAQ:POOL). Out of all the businesses we own, these two might face the greatest risks of rising costs due to tariffs, but we shall see. Regarding Pool Corporation, they are the largest distributor of pool-related products and supplies in North America. We like that the company has never competed solely on price. They sell based on value and providing the best customer experience. They have also historically been able to pass on inflationary price increases to their customers."

Aerial view of a swimming pool with outdoor furniture surrounding it.

Pool Corporation (NASDAQ:POOL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Pool Corporation (NASDAQ:POOL) at the end of the fourth quarter compared to 32 in the third quarter. Pool Corporation's (NASDAQ:POOL) fourth quarter sales decreased 2% year over yar to $988 million. While we acknowledge the potential of Pool Corporation (NASDAQ:POOL) 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 Pool Corporation (NASDAQ:POOL) in another article, where we shared the list of stock picks from Warren Buffett's growth stock portfolio. 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.