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 Management, LLC’s Technology Innovators Fund highlighted stocks like Cloudflare, Inc. (NYSE:NET). Cloudflare, Inc. (NYSE:NET) is a cybersecurity and web infrastructure company that enhances website performance and protects online services through its global network. The one-month return of Cloudflare, Inc. (NYSE:NET) was 6.34% while its shares traded between $89.42 and $260.00 over the last 52 weeks. On February 13, 2026, Cloudflare, Inc. (NYSE:NET) stock closed at approximately $195.85 per share, with a market capitalization of about $68.92 billion.
Sands Capital Management, LLC’s Technology Innovators Fund stated the following regarding Cloudflare, Inc. (NYSE:NET) in its Q4 2025 investor letter:
“Cyberattacks have become more frequent and costly. They have also become increasingly sophisticated. As more activity moves to the cloud and as AI tools spread, the attack surface for enterprises, governments, and individuals grows in scale and complexity. Security is no longer a discretionary budget item. It is a core operating requirement and a foundation for trust with customers, regulators, and partners.
Within our global strategies, we own several leaders that we believe are well-positioned for this long-term demand. Cloudflare, Inc. (NYSE:NET) is building a global edge network that improves application performance and also provides integrated security services against a wide range of online threats.”
Cloudflare, Inc. (NYSE:NET) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held Cloudflare, Inc. (NYSE:NET) at the end of the third quarter, which was 59 in the previous quarter. While we acknowledge the risk and potential of Cloudflare, Inc. (NYSE:NET) 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 Cloudflare, Inc. (NYSE:NET) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Cloudflare, Inc. (NYSE:NET) and shared the list of high-growth cybersecurity stocks to buy. 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.
