Bristlemoon Capital, a global equities firm, released its “Bristlemoon Global Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -3.2% in the first quarter, -6.5% for March 2025, and 14.0%, net of fees, for the nine months ending March 31, 2025. The firm’s observation is that the value returns to the market, with several stocks starting to appear interesting. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Bristlemoon Global Fund highlighted stocks such as Pinterest, Inc. (NYSE:PINS). Pinterest, Inc. (NYSE:PINS) is a visual search and discovery platform that enables users to find ideas, such as recipes, home, and style inspiration. The one-month return of Pinterest, Inc. (NYSE:PINS) was 7.07%, and its shares lost 21.89% of their value over the last 52 weeks. On June 17, 2025, Pinterest, Inc. (NYSE:PINS) stock closed at $34.54 per share, with a market capitalization of $23.371 billion.
Bristlemoon Global Fund stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q1 2025 investor letter:
“We also exited our position in Pinterest, Inc. (NYSE:PINS), which had been a source of funding for us over the past two quarters. We wrote about Pinterest in our Q4 2024 quarterly letter in the context of lessons in position sizing, and our view on the business has not changed since then. Our decision to exit PINS was twofold: to upgrade the quality of the portfolio, and to reduce the Fund’s overall exposure to digital advertising names. While the company delivered a good Q4 2024 result and a strong Q1 2025 guide, our conviction in the stock had declined over time due to execution issues.
Pinterest is entirely dependent on advertising, and the current farcical reciprocal tariff regime could prove extremely detrimental to digital advertising demand. As an experimental channel, advertisers are likely to cut their budgets on Pinterest before they reduce their allocation to core channels like Meta. And given the extent of the selloff in advertising exposed names, we have a stronger preference for Meta and AppLovin at these levels as they have more resilient core businesses and greater optionality.”
A young, stylish woman using her smartphone to find inspiration for her latest DIY project.
Pinterest, Inc. (NYSE:PINS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held Pinterest, Inc. (NYSE:PINS) at the end of the first quarter, which was 73 in the previous quarter. Pinterest, Inc.’s (NYSE:PINS) first quarter revenue increased 16% to $855 million. While we acknowledge the potential of Pinterest, Inc. (NYSE:PINS) 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 undervalued AI stock set for massive gains.
In another article, we covered Pinterest, Inc. (NYSE:PINS) and shared billionaire Paul Singer’s stock picks with huge upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of PINS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
