Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. small-cap stocks experienced significant gains this quarter, despite volatility. They initially dipped after President Trump announced unexpectedly high tariff rates, but quickly rebounded as his economic team showed signs of softening their stance. Against this backdrop, the Strategy performed in line with the Russell 2000® Growth Index’s 11.97% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Wasatch Small Cap Growth Strategy highlighted stocks such as BellRing Brands, Inc. (NYSE:BRBR). Headquartered in Saint Louis, Missouri, BellRing Brands, Inc. (NYSE:BRBR) provides various nutrition products. The one-month return of BellRing Brands, Inc. (NYSE:BRBR) was -6.73%, and its shares gained 1.73% of their value over the last 52 weeks. On August 4, 2025, BellRing Brands, Inc. (NYSE:BRBR) stock closed at $53.64 per share, with a market capitalization of $6.812 billion.
Wasatch Small Cap Growth Strategy stated the following regarding BellRing Brands, Inc. (NYSE:BRBR) in its second quarter 2025 investor letter:
"The largest detractor from the strategy’s performance for the quarter was BellRing Brands, Inc. (NYSE:BRBR). The company provides various nutritional products and is best known for its Premier Protein and Dymatize brands.
BellRing’s fundamentals are strong, but there is a one-off channel inventory dynamic affecting guidance for the third quarter, which caused the stock to sell off. We visited the company recently, and believe our secular thesis is on track given strong consumption metrics and a continued runway to increase distribution and penetrate new households."
A wide shot of an aisle in a food store lined with different nutrition products.
BellRing Brands, Inc. (NYSE:BRBR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held BellRing Brands, Inc. (NYSE:BRBR) at the end of the first quarter, compared to 42 in the fourth quarter. While we acknowledge the potential of BellRing Brands, Inc. (NYSE:BRBR) 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.
In another article, we covered BellRing Brands, Inc. (NYSE:BRBR) and shared the list of consumer defensive stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.