Soumya Eswaran
3 min read
In This Article:
Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned 0.43%, net of fees, in the quarter compared to -1.32% for the MSCI AC World Net Index. The Portfolio experienced a solid quarter relative to the market, despite a volatile environment. Industrials and Consumer Discretionary were the top sector contributors, while Information Technology and Energy detracted. Europe was the top contributor from a regional standpoint, while emerging markets detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Hardman Johnston Global Equity Strategy highlighted stocks such as Coty Inc. (NYSE:COTY). Coty Inc. (NYSE:COTY) is a beauty company that engages in the manufacturing, marketing, and distribution of beauty products. The one-month return of Coty Inc. (NYSE:COTY) was -6.44%, and its shares lost 52.36% of their value over the last 52 weeks. On June 30, 2025, Coty Inc. (NYSE:COTY) stock closed at $4.65 per share, with a market capitalization of $4.056 billion.
Hardman Johnston Global Equity Strategy stated the following regarding Coty Inc. (NYSE:COTY) in its Q1 2025 investor letter:
"Coty Inc. (NYSE:COTY) has been impacted by the overall slowdown in cosmetic sales. They issued a sales warning in September, followed by a downward adjustment of mid-term targets in February. While Coty’s products are selling well, retailer hesitancy to re-order and questions about consumers appetite have hit the stock. We used a period of relative strength to liquidate our position."
A close-up of a woman's face wearing a beauty product, highlighting the company's range of luxury items.
Coty Inc. (NYSE:COTY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Coty Inc. (NYSE:COTY) at the end of the first quarter, which was 28 in the previous quarter. While we acknowledge the potential of Coty Inc. (NYSE:COTY) 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.
In another article, we covered Coty Inc. (NYSE:COTY) and shared the list of best value penny 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. While we acknowledge the potential of COTY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
