Crossroads Capital LLC, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 2.7% net of fees and expenses in Q4 2025, bringing its annual return to 37.7% net. Since its inception, the Fund compounded at the rate of 21.2% gross and 17.1% net. By the end of December 2025, the Fund’s overall non-delta adjusted gross and net exposure were recorded at 89.7% and 72.1%, respectively. After a strong Q3, November revealed how rapidly market sentiment can shift due to AI bubble concerns, Federal Reserve uncertainty, and increasingly bearish positioning. Q4 revealed the market’s increasingly volatile nature while also demonstrating reflexivity rather than avoiding it. The firm remains cautiously optimistic that the positive trend in market breadth and a growing interest in small-cap stocks will carry into 2026, giving it a much-needed boost that Crossroads has long anticipated. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Crossroads Capital highlighted stocks like Nebius Group N.V. (NASDAQ:NBIS). Nebius Group N.V. (NASDAQ:NBIS) is a technology company that focuses on developing full-stack infrastructure to service the global AI industry. On February 27, 2026, Nebius Group N.V. (NASDAQ:NBIS) stock closed at $91.19 per share. One-month return of Nebius Group N.V. (NASDAQ:NBIS) was 3.44%, and its shares gained 224.52% over the past 52 weeks. Nebius Group N.V. (NASDAQ:NBIS) has a market capitalization of $23.07 billion.
Crossroads Capital stated the following regarding Nebius Group N.V. (NASDAQ:NBIS) in its fourth quarter 2025 investor letter:
“Nebius Group N.V. (NASDAQ:NBIS) continues to be viewed more like an AI infrastructure “off-take” platform than an emerging AI-first cloud platform. The Microsoft agreement signed in September 2025 is a five-year commitment worth ~$17.4B (with options taking total value to ~$19.4B) for internal workloads and is anchored by dedicated capacity delivered from Nebius’ new Vineland, New Jersey data center. This multi-year committed capacity is expected to support incremental capacity buildouts financed with contract-secured debt, priced off the counterparty’s credit quality.
In Q4, Nebius added a second hyperscaler contract: a ~$3B, five-year AI infrastructure agreement with Meta. The contract was explicitly capacity-constrained (not demand-constrained), with Nebius planning to deploy the needed capacity over the next ~3 months.
Through 2026, we expect both hyperscalers to ramp utilization across Nebius’s platform. Further growth will be driven primarily by execution, power availability, and access to capital. While all three remain critical, the past year has proven an execution discipline that materially contradicts the market’s tendency to view Nebius as a “newcomer.”…” (Click here to read the full text)
Nebius Group N.V. (NASDAQ:NBIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 54 hedge fund portfolios held Nebius Group N.V. (NASDAQ:NBIS) at the end of the fourth quarter, compared to 65 in the previous quarter. While we acknowledge the risk and potential of Nebius Group N.V. (NASDAQ:NBIS) 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 Nebius Group N.V. (NASDAQ:NBIS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Nebius Group N.V. (NASDAQ:NBIS) and shared a list of best stocks to buy in 2026 according to Reddit. 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.
