Here’s How Meta (META) Contributed to the Long-Term Performance of Rowan Street Capital

Rowan Street Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first half of 2025 was strong for Rowan Street, with its fund up +20.1% (net) YTD, marking a remarkable three-year run. Since mid-2022, the fund has compounded capital at about 51.7% (net) annually, with a +249% total return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Rowan Street Capital highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was 1.03%, and its shares gained 47.72% of their value over the last 52 weeks. On July 16, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $702.91 per share, with a market capitalization of $1.767 trillion.

Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2025 investor letter:

“Listed in the table below are our core holdings, sorted by the length of our holding period. As you can see, we have been shareholders of Meta Platforms, Inc. (NASDAQ:META) and Spotify (SPOT) for over 7 years — a holding period that we aim for when we make an initial purchase. Our internal rate of return (IRR) on both investments has exceeded 20% annually

This resonates deeply with our experience. Two of our longest-term holdings — Meta Platforms and Spotify — have each compounded at over 20% annually and generated over 4x returns for our fund over 7+ years. But the journey to those returns was anything but smooth

Meta (META) saw a 40% drawdown early in our holding period, and then again dropped a staggering 75% in 2022 as sentiment around the business turned sharply negative. Conviction was tested. Headlines were brutal. Yet, we held on, grounded in fundamentals and our understanding of the business. At the time, we shared our perspective publicly in this article on Seeking Alpha: Does a $750 Billion Decline in Meta’s Market Cap Make Sense?, making the case for Meta when few wanted to touch it. That thesis was ultimately validated — Meta has since appreciated more than 7x from those lows, becoming one of the top contributors to our long-term performance.”

In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared the list of stocks that Jim Cramer recently discussed. Meta Platforms, Inc. (NASDAQ:META) boosted Mar Vista U.S. Quality Premier Strategy’s performance in Q2 2025, driven by its strong operational efficiency and solid financial health. In addition, please check out our hedge fund investor letters Q2 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.