Here's Why Insperity (NSP) Rose in Q1

Diamond Hill Capital, an investment management company, released its “Small Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1, markets were uneven due to the new presidential administration’s activity, leading to concern about the future. The Russell 3000 Index fell by 4.7% in Q1, the first quarterly loss since Q3 2023. Diamond Hill Small Cap Fund returned -11.56% in Q1, trailing the Russell 2000 Index’s -9.48% return. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Diamond Hill Small Cap Fund highlighted stocks such as Insperity, Inc. (NYSE:NSP). Headquartered in Kingwood, Texas, Insperity, Inc. (NYSE:NSP) is a human resource (HR) and business solutions provider to improve the performance of small and medium-sized businesses. The one-month return of Insperity, Inc. (NYSE:NSP) was -22.21%, and its shares lost 37.26% of their value over the last 52 weeks. On May 6, 2025, Insperity, Inc. (NYSE:NSP) stock closed at $65.34 per share with a market capitalization of $2.46 billion.

Diamond Hill Small Cap Fund stated the following regarding Insperity, Inc. (NYSE:NSP) in its Q1 2025 investor letter:

"Other top contributors included Taseko Mines, Insperity, Inc. (NYSE:NSP) and International General Insurance Holdings. Shares of human resources and business solutions provider Insperity rose as investors were encouraged by the company’s improved 2025 worksite employee numbers. While we believe the company has work to do to prove the value of its partnership with Workday, we are encouraged by its progress thus far."

Insperity, Inc. (NYSE:NSP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Insperity, Inc. (NYSE:NSP) at the end of the fourth quarter, compared to 17 in the third quarter. While we acknowledge the potential of Insperity, Inc. (NYSE:NSP) 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.

Diamond Hill Small Cap Fund added Insperity, Inc. (NYSE:NSP) in Q3 2024 because of its excellence in outsourced HR and its ability to benefit from ongoing trends. Insperity, Inc. (NYSE:NSP). 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.