Bristlemoon Capital, a global equities firm, released its “Bristlemoon Global Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -3.2% in the first quarter, -6.5% for March 2025, and 14.0%, net of fees, for the nine months ending March 31, 2025. The firm’s observation is that the value returns to the market, with several stocks starting to appear interesting. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Bristlemoon Global Fund highlighted stocks such as Xponential Fitness, Inc. (NYSE:XPOF). Xponential Fitness, Inc. (NYSE:XPOF) is a North America-based boutique fitness franchisor. The one-month return of Xponential Fitness, Inc. (NYSE:XPOF) was -9.15%, and its shares lost 47.91% of their value over the last 52 weeks. On June 17, 2025, Xponential Fitness, Inc. (NYSE:XPOF) stock closed at $7.84 per share, with a market capitalization of $380.946 million.
Bristlemoon Global Fund stated the following regarding Xponential Fitness, Inc. (NYSE:XPOF) in its Q1 2025 investor letter:
“We’d previously written about Xponential Fitness, Inc. (NYSE:XPOF), noting that while it wasn’t the highest quality business, it was trading on a depressed multiple, and the business metrics were heading in the right direction. Unfortunately, there was more negative news in store when the company reported its Q4 2024 result. XPOF’s FY25 adjusted EBITDA guidance missed consensus by around 10 percent.”
A group of people in the fitness studio doing a yoga or pilates class.
Xponential Fitness, Inc. (NYSE:XPOF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Xponential Fitness, Inc. (NYSE:XPOF) at the end of the first quarter, which was 27 in the previous quarter. Xponential Fitness, Inc. (NYSE:XPOF) reported consolidated revenue of $76.9 million in the first quarter 2025, down 4% from Q1 2024. While we acknowledge the potential of Xponential Fitness, Inc. (NYSE:XPOF) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered Xponential Fitness, Inc. (NYSE:XPOF) and shared Wasatch Micro-Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of XPOF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
