Immersion Investment Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Immersion Investment Partners returned 39.1% in the second quarter, surpassing the Russell 2000 Index’s 21.5% gain. The market started valuing their non-AI investments more rationally in the quarter, focusing on strong management, revenue growth, and improving cash flow. The firm capitalized on market selloffs due to macroeconomic factors unrelated to company fundamentals, increasing positions at lower prices, which led to gains in several holdings as they rebounded in the second quarter. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Immersion Investment Partners highlighted Mama’s Creations, Inc. (NASDAQ:MAMA). Mama’s Creations, Inc. (NASDAQ:MAMA) is a food company that manufactures and markets fresh deli-prepared foods. On August 10, 2026, Mama’s Creations, Inc. (NASDAQ:MAMA) closed at $17.67 per share. One-month return of Mama’s Creations, Inc. (NASDAQ:MAMA) was -5.15%, and its shares gained 112.12% over the past 52 weeks. Mama’s Creations, Inc. (NASDAQ:MAMA) has a market capitalization of $821.61 million.
Immersion Investment Partners stated the following regarding Mama’s Creations, Inc. (NASDAQ:MAMA) in its Q2 2026 investor letter:
“Mama’s Creations, Inc. (NASDAQ:MAMA) (MAMA – Doubted Champion) We have written about our investment in Mama’s Creations almost ad nauseam. For a refresher, you can read about it here, here, and here. Red Violet may take the cake for being irrationally discarded in the first quarter because it carried the wrong sector label, but Mama’s Creations was a close second. Investors appeared to react to a headline financial figure without fully considering what management had explained about the underlying business.
During the first quarter, Mama’s increased spending to support orders for new products launching at Walmart. However, most of the revenue needed to offset those expenses would not appear until the second quarter. Gross margin declined to 23.6% from 26.1% in the prior-year period. The decline reflected approximately $1 million of startup costs associated with new product launches, as well as the reclassification of approximately $500,000 from marketing expense to trade spending. This was part of the plan. As it should have, Mama’s spent money preparing to fulfill orders that it knew were coming. Because the financial books must be closed on an arbitrary date, the expenses appeared in one reporting period while much of the associated revenue would not be recognized until the next…” (Click here to read the full text)
Mama’s Creations, Inc. (NASDAQ:MAMA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 17 hedge fund portfolios held Mama’s Creations, Inc. (NASDAQ:MAMA) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Mama’s Creations, Inc. (NASDAQ:MAMA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Mama’s Creations, Inc. (NASDAQ:MAMA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Mama’s Creations, Inc. (NASDAQ:MAMA) and shared Riverwater Micro Opportunities Strategy’s insight on the company. In addition, please check out our hedge fund investor letters Q2 2026 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.
