Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. stocks fell in the quarter as investors considered the potential economic effects of tariffs and government funding cuts. Softer economic data also impacted stocks. The Russell 2000® Growth index ended the quarter with a loss of -11.12%. Additionally, the Wasatch Small Cap Growth strategy declined and lagged the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Wasatch Small Cap Growth Strategy highlighted stocks such as RBC Bearings Incorporated (NYSE:RBC). Headquartered in Oxford, Connecticut, RBC Bearings Incorporated (NYSE:RBC) manufactures engineered precision bearings and components. The one-month return of RBC Bearings Incorporated (NYSE:RBC) was -3.56%, and its shares gained 32.49% of their value over the last 52 weeks. On April 17, 2025, RBC Bearings Incorporated (NYSE:RBC) stock closed at $321.68 per share with a market capitalization of $10.115 billion.
Wasatch Small Cap Growth Strategy stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its Q1 2025 investor letter:
“RBC Bearings Incorporated (NYSE:RBC) also contributed. Like our other top contributors, strong financial results have driven RBC’s stock higher, as the company reported steady growth for its aerospace and defense business. RBC sells highly engineered precision bearings and components to the industrial, defense and aerospace industries. We think its management team continues to execute at a high level and has done an excellent job integrating a fairly recent acquisition. We continue to like the company and believe investors underappreciate RBC’s large, diversified aerospace business, especially given the strong worldwide growth in commercial aviation fleets.”
A skilled machinist inspecting a precision bearing for a aerospace/defense application.
RBC Bearings Incorporated (NYSE:RBC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the fourth quarter which was 26 in the previous quarter. In the third quarter of financial year 2025, RBC Bearings Incorporated (NYSE:RBC) reported $394 million in net sales, representing a 5.5% increase over last year. While we acknowledge the potential of RBC Bearings Incorporated (NYSE:RBC) 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.
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