Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities experienced a strong momentum in 2025 and marked their second consecutive year of double-digit gains. The market witnessed one of the fastest recoveries following its dip into bear territory in April. Market leadership continued to narrow as Mega-cap stocks and AI-driven companies dominated the landscape. Against this backdrop, The Mar Vista’s U.S. Quality strategy reported +0.20% net-of-fees gains in Q4 2025 vs. the Russell 1000® Index’s +2.41% return and the S&P 500® Index’s +2.65% return. Stock selection in the communication services, consumer discretionary, and financials sectors was favorable to its performance, while stock selection in information technology, materials, and healthcare detracted from its performance. The letter also shared that, in 2026, markets will need to strike a balance between strong fundamentals and increasing economic uncertainties. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Mar Vista U.S. Quality Strategy highlighted stocks such as Netflix, Inc. (NASDAQ:NFLX). Incorporated in 1997, Netflix, Inc. (NASDAQ:NFLX) is a leading entertainment services provider. The one-month return of Netflix, Inc. (NASDAQ:NFLX) was -4.72%, and its shares gained 6.48% of their value over the last 52 weeks. On January 13, 2026, Netflix, Inc. (NASDAQ:NFLX) stock closed at $90.32 per share, with a market capitalization of $382.715 billion.
Mar Vista U.S. Quality Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its fourth quarter 2025 investor letter:
“Netflix, Inc. (NASDAQ:NFLX) has built a durable economic moat around its vertically-integrated, globally-scaled streaming business. As the first company to establish a global subscription media platform within the $500 billion TV market, Netflix is now reaping the benefits of its early leadership. Its march toward global dominance has been propelled by substantial investments in both technology and content. The broader media industry, meanwhile, is undergoing a structural transformation driven by technology, as the traditional TV bundle fades and legacy media companies scramble to replicate Netflix’s success. However, without global scale, the escalating costs of competing in the content wars are unsustainable. With more than 300 million members, Netflix enjoys the lowest content cost per subscriber in the industry, an advantage that enables it to profitably outspend rivals and accelerate its competitive flywheel. We expect this edge to continue compounding over time.
At the time of purchase, Netflix’s stock was down nearly 20% from its February peak. Near-term macroeconomic uncertainty likely contributed to this volatility, creating an attractive entry opportunity. This downward pressure was further intensified by market skepticism surrounding Netflix’s $82.7 billion bid for Warner Bros. Discovery. While the deal promises a massive expansion of premium intellectual property (IP), investors have reacted with caution to the prospect of a bidding war with Paramount Skydance and the operational complexities of such a historic pivot…” (Click here to read the full text)
Netflix, Inc. (NASDAQ:NFLX) is in 14th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 154 hedge fund portfolios held Netflix, Inc. (NASDAQ:NFLX) at the end of the third quarter, up from 133 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 oversold fundamentally strong 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.
