Choice Equities Capital Management, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, Choice Equities Fund reported gains of +30.0% on a net basis, bringing year-to-date gains to +21.6%. This compares to +8.5% for the Russell 2000 and +10.9% for the S&P 500 in the quarter, and -1.8% and +6.2% returns for the indexes YTD. Moreover, the fund generated an annualized return of +13.4% since its inception in 2017, compared to +7.1% and +14.7% returns for the indexes, respectively. The market dynamics changed in the second quarter, true to the theme, things are changing quickly. The S&P rebounded to a new high at the end of the second quarter from a sharp decline. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its second-quarter 2025 investor letter, Choice Equities Fund highlighted stocks such as Magnite, Inc. (NASDAQ:MGNI). Headquartered in New York, New York, Magnite, Inc. (NASDAQ:MGNI) is an independent omni-channel sell-side advertising platform. The one-month return of Magnite, Inc. (NASDAQ:MGNI) was -4.84%, and its shares gained 61.78% of their value over the last 52 weeks. On August 20, 2025, Magnite, Inc. (NASDAQ:MGNI) stock closed at $21.84 per share, with a market capitalization of $3.11 billion.
Choice Equities Fund stated the following regarding Magnite, Inc. (NASDAQ:MGNI) in its second quarter 2025 investor letter:
“Magnite, Inc. (NASDAQ:MGNI) – Market volatility and economic concerns were the primary forces pushing MGNI to trade in such a wide range during the first half of the year, as markets briefly priced severe cuts to ad budgets into the stock. As economic storm clouds lifted, evidence began to emerge that ad budgets largely remain intact relative to prior expectations, and though the company suspended its guidance for the second half of the year, it seems its prior views will likely be sustained. Aside from positive channel checks, encouraging peer reports and general news of resilient ad spending, perhaps more interestingly, these checks suggest that advertiser television ad budgets now favor CTV (i.e., streaming) over traditional linear TV, a shift in advertiser TV budgets long underway that has reached the critical equilibrium mark. Netflix is of course some part of this, as their advertising efforts continue to gain scale, but the tide is also turning more broadly.
The company’s recent earnings call also produced some noteworthy data points, as management highlighted the benefits of potential market share gains should the DOJ force any remedies on Google as a result of the ad tech trial ruling issued in April. The remedies trial remains set for September 22nd. Developments there will likely be contested and remain somewhat unpredictable. A second ad tech trial will soon start in August in Texas, which is also likely to have some ramifications on potential outcomes. Suffice it say, court filings and testimony transcripts make for interesting reading, and we are tracking developments closely. For now, and until further news breaks, it is encouraging to see the company continuing to announce a steady stream of new customer wins, recently adding Amazon, Pinterest, Redfin and Paramount Australia to a customer list that has been growing impressively lately.”
A marketing manager examining a publisher’s digital inventory on a laptop.
Magnite, Inc. (NASDAQ:MGNI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Magnite, Inc. (NASDAQ:MGNI) at the end of the first quarter, which was 25 in the previous quarter. Magnite, Inc.’s (NASDAQ:MGNI) total revenue for Q2 rose 6% year-over-year to $173 million. While we acknowledge the risk and potential of Magnite, Inc. (NASDAQ:MGNI) 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 Magnite, Inc. (NASDAQ:MGNI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Magnite, Inc. (NASDAQ:MGNI) and shared Crossroads Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.
