Magellan Asset Management, an investment management company, released the fourth quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on investing in outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 3.1% in the December quarter and 2.5% in AUD terms. The portfolio underperformed the benchmark this quarter, returning 0.1%, amid choppy trading and market rotation. The leadership began to shift from AI Mega Cap stocks to sectors with stronger fundamentals and better valuations. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Magellan Global Fund highlighted stocks like Netflix, Inc. (NASDAQ:NFLX). Netflix, Inc. (NASDAQ:NFLX) is a leading subscription-based streaming entertainment platform. On April 2, 2026, Netflix, Inc. (NASDAQ:NFLX) stock closed at $98.66 per share. One-month return of Netflix, Inc. (NASDAQ:NFLX) was -0.36%, and its shares gained 15.28% over the past twelve months. Netflix, Inc. (NASDAQ:NFLX) has a market capitalization of $418.51 billion.
Magellan Global Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its fourth quarter 2025 investor letter:
“The largest detractors to the portfolio’s performance over the quarter were Microsoft, Netflix, Inc. (NASDAQ:NFLX), and Meta Platforms. Netflix underperformed on a combination of a de-rating from elevated levels and its agreement to acquire Warner Bros Discovery’s Studio & Streaming business for an enterprise value of $83 billion. Market concerns related to the acquisition include risk of further escalation in the purchase price, execution risks, potential anti-trust hurdles, that the deal reflects a plateauing of engagement, and a less clean near-term outlook. At the current agreed price, and taking a medium term view, we view the deal as strategically sound and likely to create value over the longer term as streaming continues to take viewer share from linear TV.”
Netflix, Inc. (NASDAQ:NFLX) ranks 13th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 146 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the fourth quarter, compared to 154 in the previous quarter. While we acknowledge the risk and potential of Netflix, Inc. (NASDAQ:NFLX) 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 Netflix, Inc. (NASDAQ:NFLX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Netflix, Inc. (NASDAQ:NFLX) and shared the list of top stocks fund managers are loading up on in 2026. In its Q4 2025 investor letter, RiverPark Large Growth Fund noted Netflix, Inc. (NASDAQ:NFLX) as the portfolio’s largest detractor. 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.
