GreensKeeper Asset Management, a prominent player in the investment management sector, has unveiled its investor letter for the first quarter of 2025, marking a significant moment for its investors and stakeholders. The letter provides a comprehensive overview of the market dynamics experienced during this turbulent period. To access the detailed letter, interested parties can download it here.

The beginning of 2025 has proven to be challenging for financial markets, with notable volatility affecting all major indices. Throughout this quarter, the performance indicators reflected a stark contrast among various stock categories. The Value Fund, managed by GreensKeeper, managed to achieve a modest gain of 3.0% after accounting for fees and expenses. In comparison, the S&P/TSX composite index saw a return of 1.5%, while the broader S&P 500 dipped significantly by 4.2%, and the technology-heavy Nasdaq slipped even further, declining by 10.2%.

One of the critical events contributing to this market downturn was President Trump's announcement on April 2, 2025, regarding a new 'Liberation Day' tariff, which sent shockwaves through investor sentiment. The news drove a substantial market decline of about 10% over the week, illustrating how political developments can swiftly influence market conditions.

GreensKeeper Asset Management's letter also highlights some of the top holdings within its portfolio, with a particular emphasis on American Express Company (NYSE:AXP). American Express operates as a leading integrated payments company, playing a critical role in the financial services industry. Interestingly, despite a one-month return of -0.62%, American Express shares have exhibited resilience over the past year, gaining an impressive 20.54%. As of April 9, 2025, the stock closed at $262.36 per share, reflecting a robust market capitalization of $162.23 billion.

In the investor letter, GreensKeeper provided insights into American Expresss recent performance, stating, "Our second-largest contractor in the quarter was American Express Company (NYSE:AXP). AXP finished 2024 on a strong note, with earnings growing 23% for the year. While provisions for credit losses increased, reflecting a more cautious credit outlook, net write-off rates remained below historical averages, indicating strength in the underlying credit quality. AXP remains well-capitalized, and its affluent customer base is expected to fare better than the general economy in the coming months. However, the stock was not cheap, and we trimmed our position in Q1." This assessment highlights both the strengths and challenges facing American Express amidst shifting economic landscapes.

Adding weight to the discussion around American Express, notable financial commentator Jim Cramer remarked on the company's prospects, stating, "One of Americas Great CompaniesI'd Buy More!" His endorsement underscores the potential that many investors see in American Express, despite the current market volatility.

Interestingly, American Express is not included in the list of the 30 most popular stocks among hedge funds. According to data from GreensKeeper's database, 71 hedge fund portfolios included American Express at the end of the fourth quarter, a slight increase from 62 in the previous quarter. This uptick may indicate growing confidence among institutional investors, particularly after American Express reported a record revenue of $66 billion in 2024, reflecting a 10% increase when adjusted for foreign exchange rates.

While GreensKeeper acknowledges the appeal of American Express as a viable investment opportunity, the firms conviction lies in the belief that stocks in the artificial intelligence sector hold greater potential for substantial returns over a shorter investment horizon. Investors looking for promising AI stocks are encouraged to explore alternatives that trade at lower earnings multiples, akin to NVIDIA but at a fraction of the cost. More information can be found in their latest report focusing on the most promising AI investments.