Sands Capital Management, LLC‘s Technology Innovators Fund released its Q4 2025 investor letter for “Technology Innovators Fund”. A copy of the letter can be downloaded here. The Fund delivered mixed performance during the fourth quarter of 2025, as market returns were increasingly driven by a narrow group of large-cap growth stocks, with the portfolio’s top ten holdings accounting for roughly 59% of assets, while several high-valuation innovation names faced pressure from slowing momentum and investor risk aversion. The fund’s results reflected stock-specific challenges rather than broad macroeconomic shocks, with weaker performance in certain emerging technology holdings offset by strength in select platform and infrastructure businesses. During the quarter, the portfolio declined 6.3% on a quarter-to-date basis, and the fund generated a 14.7% return over the one year, reflecting stock-specific challenges rather than broad macroeconomic shocks, with weaker performance in certain emerging technology holdings offset by strength in select platform and infrastructure businesses. Management emphasized its long-term investment horizon, noting an average annual portfolio turnover of 21%, and stated that many portfolio companies continued to generate solid full-year earnings growth in 2025, supported by durable revenue models tied to artificial intelligence, cloud computing, and digital transformation, even as enthusiasm for speculative growth faded late in the quarter. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks like Axon Enterprise, Inc. (NASDAQ:AXON). Axon Enterprise, Inc. (NASDAQ:AXON) is a public safety technology company providing tasers, body cameras, and cloud-based evidence management software to law enforcement agencies worldwide. The one-month return of Axon Enterprise, Inc. (NASDAQ:AXON) was -32.45% while its shares traded between $369.41 and $885.92 over the last 52 weeks. On February 13, 2026, Axon Enterprise, Inc. (NASDAQ:AXON) stock closed at approximately $429.67 per share, with a market capitalization of about $34.13 billion.
Sands Capital Technology Innovators Fund stated the following regarding Axon Enterprise, Inc. (NASDAQ:AXON) in its Q4 2025 investor letter:
“We recently engaged with Axon Enterprise, Inc. (NASDAQ:AXON) to continue our dialogue on key governance and sustainability topics, including executive compensation, responsible AI development, climate-related disclosures, and supply-chain risk management. The engagement reflects Axon’s expanding global footprint and the increasing expectations of shareholders as the company deepens its use of advanced technologies and scales its operations.
Following Say-on-Pay proposals receiving 51 percent support in 2024 and 67 percent support in 2025, we discussed how Axon’s board interpreted shareholder feedback and responded. The company acknowledged that concerns stemmed less from the compensation program itself and more from the timing and concentration of large, time-based equity grants in 2024. Axon emphasized that no structural changes were made in 2025, but proxy disclosures were refined, resulting in stronger proxy advisor recommendations. The board is now evaluating ways to extend and smooth the cadence of equity awards to avoid the appearance of front loading while maintaining alignment with long-term value creation…”(Click here to read the full text)
Axon Enterprise, Inc. (NASDAQ:AXON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held Axon Enterprise, Inc. (NASDAQ:AXON) at the end of the third quarter, which was 62 in the previous quarter. While we acknowledge the risk and potential of Axon Enterprise, Inc. (NASDAQ:AXON) 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 Axon Enterprise, Inc. (NASDAQ:AXON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Axon Enterprise, Inc. (NASDAQ:AXON) and shared the list of stocks that were discussed by Jim Cramer. In addition, please check out our hedge fund investor letters Q4 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.
