Here’s Why Tapasya Fund Sold Topgolf Callaway (MODG)

Tapasya Fund, an investment management company, released its fourth quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm celebrated its third anniversary in August 2025 and is happy with the fund’s performance. In 2025, the fund performed well and achieved strong absolute returns, outpacing the S&P 500 and several other market indices. The year was marked by notable developments, especially related to tariffs, which led to substantial fluctuations in the market. There was a swift correction in April, followed by a robust rebound. The theme Artificial Intelligence (AI) has played a crucial role in supporting the market through times of volatility to reach new peaks, reaching over 38 new all-time highs this year. Against this backdrop, the fund returned 23.5% (net) in 2025 compared to a 17.9% return for the S&P 500 Index (with Dividends). The firm’s goal is to avoid any sector-specific bubble bursts, reducing the effect on the portfolio beyond general market downturns. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Tapasya Fund highlighted stocks such as Topgolf Callaway Brands Corp. (NYSE:MODG). Headquartered in Carlsbad, California, Topgolf Callaway Brands Corp. (NYSE:MODG) is a tech-enabled golf and lifestyle company that manufactures and distributes golf equipment and accessories. The one-month return of Topgolf Callaway Brands Corp. (NYSE:MODG) was 19.12%, and its shares gained 60.90% of their value over the last 52 weeks. On January 8, 2026, Topgolf Callaway Brands Corp. (NYSE:MODG) stock closed at $13.58 per share with a market capitalization of $2.497 billion.

Tapasya Fund stated the following regarding Topgolf Callaway Brands Corp. (NYSE:MODG) in its fourth quarter 2025 investor letter:

“Topgolf Callaway Brands Corp. (NYSE:MODG) (Sold 2025): • Thesis & Outcome: The intent was a short-term holding (just over a year) expecting a split of Topgolf and Callaway by mid-2025. The company’s management, which has a history of faltering, failed to execute the split. • Takeaway: We incurred losses, but the small position size (<2%) minimized the impact on the overall portfolio. The investment was a mistake because management failed to deliver on the expected action.”

In another article, we covered Topgolf Callaway Brands Corp. (NYSE:MODG) and shared a bullish thesis on the company. 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.