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Mar Vista Investment Partners, LLC, an investment management company, released the “Mar Vista U.S. Quality Select Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. US stocks suffered their worst quarter in three years, with the steepest losses since 2022, due to tariff concerns and economic stagnation fears. In the first quarter, the strategy returned -3.05% net-of-fees compared to -4.49% and -4.27% returns for the Russell 1000® Index and the S&P 500® Index, respectively. Stock selection within healthcare, communication services, and consumer staples detracted from the fund’s performance during the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Mar Vista U.S. Quality Select Strategy highlighted stocks such as Broadcom Inc. (NASDAQ:AVGO). Broadcom Inc. (NASDAQ:AVGO) designs and develops various semiconductor and infrastructure software solutions. The one-month return of Broadcom Inc. (NASDAQ:AVGO) was 2.86%, and its shares gained 36.67% of their value over the last 52 weeks. On April 23, 2025, Broadcom Inc. (NASDAQ:AVGO) stock closed at $176.91 per share with a market capitalization of $831.822 billion.
Mar Vista U.S. Quality Select Strategy stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its Q1 2025 investor letter:
"We maintain a positive outlook on Broadcom Inc. (NASDAQ:AVGO) shares, despite recent stock price pressure stemming from two key concerns: (1) uncertainty around potential tariffs and the impact on global growth, and (2) investor skepticism regarding the return profile of large-scale AI capex investments by hyperscalers. This skepticism has been amplified by the efficiency gains recently demonstrated by DeepSeek, an unknown Chinese software company, which developed a competitive large language model at a much lower cost. These efficiency gains stoked fears that hyperscalers may have overbuilt AI infrastructure.