Teledyne Tech. (TDY): Upslope Capital Management's Re-arm and Re-shore Category Stock

Upslope Capital Management, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The First quarter was challenging for the fund. However, the world has transformed in the two weeks since March 31, due to a drastic realignment of international trade rules. As a result, markets are now more in line with Upslope's strategy and portfolio. The fund returned -5.1% (net) in Q1 compared to -6.1% and +0.2% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Upslope Capital Management highlighted stocks such as Teledyne Technologies Incorporated (NYSE:TDY). Teledyne Technologies Incorporated (NYSE:TDY) offers enabling technologies for industrial growth markets. The one-month return of Teledyne Technologies Incorporated (NYSE:TDY) was -11.50%, and its shares gained 25.06% of their value over the last 52 weeks. On April 21, 2025, Teledyne Technologies Incorporated (NYSE:TDY) stock closed at $453.35 per share with a market capitalization of $21.648 billion.

Upslope Capital Management stated the following regarding Teledyne Technologies Incorporated (NYSE:TDY) in its Q1 2025 investor letter:

Teledyne Technologies Incorporated (NYSE:TDY): Producer of specialty electronics, components, and technologies – primarily focused on imaging sensors and cameras. Dinged by transformative 2021 FLIR acquisition, expectations and valuation have been reset, balance sheet is clean, and the company is positively exposed to reshoring trends and rising defense spending.

This has been an unofficial, if deliberate, theme in the portfolio since early 2022, around the outset of the war in Ukraine. The war, in conjunction with the pandemic, I believe created lasting global change in terms of how countries view defense spending and supply chains. The Fund’s disclosed holdings include: Teledyne (TDY, specialty sensors and electronics for aerospace/defense and industrials – effectively spanning “re-arm and re-shore”)

Teledyne Technologies Incorporated (NYSE:TDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Teledyne Technologies Incorporated (NYSE:TDY) at the end of the fourth quarter compared to 39 in the third quarter. While we acknowledge the potential of Teledyne Technologies Incorporated (NYSE:TDY) 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.

In another article, we covered Teledyne Technologies Incorporated (NYSE:TDY) and shared Heartland Mid Cap Value Fund's views on the company. 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.