Should You Hold Moelis & Company (MC)?

Soumya Eswaran

Tue, May 13, 2025, 7:58 AM 2 min read

The London Company, an investment management company, released “The London Company Small Cap Strategy” first quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced a correction in 1Q25 due to macro risks, weak economic growth, and inflation. The fund declined 6.9% (-7.1%, net) compared to a 9.5% decrease in the Russell 2000 Index. The positive impact of stock selection contributed to the strategy's relative performance in the quarter, partially offset by sector exposure. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, The London Company Small Cap Strategy highlighted stocks such as Moelis & Company (NYSE:MC). Headquartered in New York, New York, Moelis & Company (NYSE:MC) is an investment banking advisory firm. The one-month return of Moelis & Company (NYSE:MC) was 17.10%, and its shares gained 9.69% of their value over the last 52 weeks. On May 12, 2025, Moelis & Company (NYSE:MC) stock closed at $60.72 per share with a market capitalization of $4.548 billion.

The London Company Small Cap Strategy stated the following regarding Moelis & Company (NYSE:MC) in its Q1 2025 investor letter:

"Moelis & Company (NYSE:MC) - MC shares were weak, reflecting uncertainty in the market, impacting the M&A environment. We continue to like MC's debt-free balance sheet, strong shareholder focus, and willingness to reinvest in the business."

A business professional banking from their laptop, taking advantage of the company's investment services.

Moelis & Company (NYSE:MC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Moelis & Company (NYSE:MC) at the end of the fourth quarter which was 21 in the previous quarter. Moelis & Company's (NYSE:MC) first quarter revenue increased 41% to $307 million. While we acknowledge the potential of Moelis & Company (NYSE:MC) 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 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.