Is Vision Capital Fund’s Investment Thesis for The Trade Desk (TTD) Aligned with The CEO’s Strategy?

Vision Capital Fund, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned +15.6% net, YTD, compared to +14.8% for the S&P 500 for the same period. Since its inception on October 1, 2024, the fund has returned a cumulative of +27.8% net, compared to +17.6% for the S&P 500. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Vision Capital Fund highlighted stocks such as The Trade Desk, Inc. (NASDAQ:TTD). Headquartered in Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is a technology company that offers a self-service cloud-based ad-buying platform. The one-month return of The Trade Desk, Inc. (NASDAQ:TTD) was -10.97%, and its shares lost 70.34% of their value over the last 52 weeks. On December 08, 2025, The Trade Desk, Inc. (NASDAQ:TTD) stock closed at $39.35 per share, with a market capitalization of $19.24 billion.

Vision Capital Fund stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its third quarter 2025 investor letter:

“Next, let’s shift to The Trade Desk, Inc. (NASDAQ:TTD). TTD is the most dominant independent programmatic digital advertising demand-side platform (DSP) for ad buyers of the open internet outside the walled gardens of Meta, Google, and Amazon. TTD has strategically positioned itself as the top dog DSP to capture the secular tailwind shift towards increasing connected TV (CTV) spend, where CTV (48%) and Mobile (35%) dominate.

The Trade Desk has struggled since its first-ever quarterly revenue miss in 4Q24, primarily due to the initial slower adoption of its newest AI-powered Kokai platform. While 1Q25 was strong (+25% revenue growth), this was followed by weaker, broad-based ad spending in 2Q25 across the larger global brands and agencies, which account for the majority of its business, along with a “soft” 3Q25 revenue growth guide of +14% (+18% ex-US political spend)…” (Click here to read the full text)

The Trade Desk, Inc. (TTD)'s Got "A Really Good Product," Says Jim Cramer

The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the third quarter, which was 60 in the previous quarter. In the third quarter of 2025, The Trade Desk, Inc. (NASDAQ:TTD) reported revenue of $739 million, representing an 18% year-over-year growth. While we acknowledge the risk and potential of The Trade Desk, Inc. (NASDAQ:TTD) 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 The Trade Desk, Inc. (NASDAQ:TTD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The Trade Desk, Inc. (NASDAQ:TTD) and shared Harding Loevner Global Equity Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.