Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategies Fund is a diversified domestic equity strategy with a focus on mid-cap growth investments. The fund focuses on investing in high-quality companies that demonstrate consistent growth and generate positive free cash flow. The fund’s Retail Class shares returned -8.03% in the first quarter, underperforming the -7.12% return of the benchmark Russell Midcap Growth Index. U.S. mid-cap growth stocks rose in January but then fell in February and March as post-election optimism was replaced by concern over executive actions, government disruptions, and rising uncertainty about trade and tariffs. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Fidelity Growth Strategies Fund highlighted stocks such as Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) offers data analytics solutions to the insurance markets. The one-month return of Verisk Analytics, Inc. (NASDAQ:VRSK) was -1.44%, and its shares gained 14.90% of their value over the last 52 weeks. On July 1, 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) stock closed at $312.95 per share, with a market capitalization of $43.777 billion.
Fidelity Growth Strategies Fund stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q1 2025 investor letter:
“Not holding Verisk Analytics, Inc. (NASDAQ:VRSK) (+8%), which provides data analysis and tech services to the insurance industry, further detracted from relative performance. Verisk has posted solid revenue growth in recent quarters and is viewed as a relatively recession-resistant business – its defensive qualities appeared to help the stock gain amid market volatility this quarter.”
An engineer using the latest predictive analytics software to formulate solutions.
Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the first quarter, which was 40 in the previous quarter. In the first quarter of 2025, Verisk Analytics, Inc. (NASDAQ:VRSK) generated $753 million in revenues, representing an increase of 7% from Q1 2024. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) 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 undervalued AI stock set for massive gains.
