Qualivian Investment Partner Sold Its Stake in United Rentals (URI) in Q1

Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 66.0% and 59.4% on a gross and net basis, since inception through March 31, 2025. It also exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis. In Q1 2025, the fund outperformed QUAL by 5.3% and 5.2% on a gross and net basis, and we outperformed the S&P 500 by 5.2% and 5.1% on a gross and net basis. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Qualivian Investment Partners highlighted stocks such as United Rentals, Inc. (NYSE:URI). Headquartered in Stamford, Connecticut, United Rentals, Inc. (NYSE:URI) is an equipment rental company. The one-month return of United Rentals, Inc. (NYSE:URI) was 7.19%, and its shares gained 16.65% of their value over the last 52 weeks. On June 30, 2025, United Rentals, Inc. (NYSE:URI) stock closed at $753.40 per share, with a market capitalization of $48.97 billion.

Qualivian Investment Partners stated the following regarding United Rentals, Inc. (NYSE:URI) in its Q1 2025 investor letter:

"We sold out of United Rentals, Inc. (NYSE:URI) because we saw more upside in some of our current holdings. We originally bought URI because it was the market share leader in the equipment rental sector, with attractive margins in an increasingly attractive industry. It had high returns on capital and could make economically accretive acquisitions for the foreseeable future. The equipment rental industry had substantial growth potential resulting from the greater attractiveness of renting versus buying and a step up in demand from heightened non residential infrastructure spending driven by the Infrastructure Bill, Inflation Reduction Act, and CHIPS and Science Act all announced during the Biden Administration, as well as announced investments in LNG and EV battery projects in the private sector. However, we now view some of these spending bills as being at risk under the Trump Administration. Furthermore, given the industry’s cyclicality and the heightened risks of a US recession from the Trump Administration’s tariff policies, we felt that other stocks were more favorably positioned."

United Rentals, Inc. (NYSE:URI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held United Rentals, Inc. (NYSE:URI) at the end of the first quarter, which was 58 in the previous quarter. In the first quarter, United Rentals, Inc.'s (NYSE:URI) total revenue increased by 6.7% year over year to $3.7 billion. While we acknowledge the potential of United Rentals, Inc. (NYSE:URI) 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 United Rentals, Inc. (NYSE:URI) and shared Wedgewood Partners' 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. While we acknowledge the potential of URI 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.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.