Optimist Fund, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund’s objective is to achieve capital growth at a rate in the mid-teens or higher over the course of several decades. In Q4 2025, the Fund declined 8.5%. The Fund, although not yet five years old, invests with a five-year perspective. While short-term drawdowns can be tough, the Fund is optimistic about the portfolio’s fundamental performance and confident in prospective returns over the next five years. The Fund believes that current valuations significantly underestimate the earnings and cash flow the core holdings will produce in five years. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Optimist Fund highlighted stocks like Carvana Co. (NYSE:CVNA). Carvana Co. (NYSE:CVNA) is a US-based used car retailer that operates an e-commerce platform. On February 26, 2026, Carvana Co. (NYSE:CVNA) stock closed at $353.90 per share. One-month return of Carvana Co. (NYSE:CVNA) was -16.01%, and its shares gained 44.53% over the past 52 weeks. Carvana Co. (NYSE:CVNA) has a market capitalization of $73.958 billion.
Optimist Fund stated the following regarding Carvana Co. (NYSE:CVNA) in its fourth quarter 2025 investor letter:
“Carvana Co. (NYSE:CVNA) – Carvana’s strong financial trajectory continues reporting record third quarter results, with 155,941 retail cars sold (+~44% YoY) and total revenue of ~$5.65 billion (+~55% YoY), both all-time quarterly highs. The company generated adjusted EBITDA of ~$637 million +~50%, with an adjusted EBITDA margin of ~11.3%, well above typical industry profitability levels. Carvana remains a top 5 holding.”
Carvana Co. (NYSE:CVNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 100 hedge fund portfolios held Carvana Co. (NYSE:CVNA) at the end of the fourth quarter, compared to 109 in the previous quarter. In Q4 2025, Carvana Co. (NYSE:CVNA) reported revenue of $5.603 billion, marking an increase of 58% from Q4 2024. While we acknowledge the risk and potential of Carvana Co. (NYSE:CVNA) 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 Carvana Co. (NYSE:CVNA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Carvana Co. (NYSE:CVNA) and shared Artisan Mid Cap Fund’s views on the company. 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.
