Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Premier Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities experienced strong momentum in 2025 and marked their third 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 U.S. Quality Premier Strategy returned +1.80% 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. Gradual changes started to surface in the fourth quarter as market participation expanded beyond mega-caps to other sectors and asset classes. So, 2026 may be different from the past three years. 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 Premier Strategy highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On January 16, 2026, Meta Platforms, Inc. (NASDAQ:META) stock closed at $620.25 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -6.24%, and its shares gained 1.22% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.56 trillion.
Mar Vista U.S. Quality Premier Strategy stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2025 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) continues to compound on its 13-15% growth trajectory, although the Q3 earnings report sparked a debate about the increasing cost of maintaining its competitive edge. While revenue growth remains robust, driven by a 10% rise in average ad prices and AI-powered content recommendations, investors are primarily focused on the projected “material step up” in capital expenditures and operating expenses for 2026. This spending shift, spearheaded by infrastructure development and the “Meta Superintelligence” team, has drawn comparisons to 2022, when aggressive spending led to market uncertainty about near-term earnings power. While we believe these investments are essential to safeguard Meta’s market position, we are cautious that the narrative surrounding new AI products remains largely unproven and that the limit for infrastructure spending may not be yet reached.
Despite these concerns, we believe Meta is effectively utilizing its current strengths to fund future growth. Even though rising infrastructure costs and hiring will impact EPS in the short term, there is clear evidence of immediate value through enhanced platform engagement and the adoption of advertiser AI tools. We view the current spending as a catalyst for substantial topline and free cash f low growth in the coming years, even as incremental AI opportunities necessitate further investment.”
Meta Platforms, Inc. (NASDAQ:META) is in the third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 273 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the third quarter, which was 260 in the previous quarter. In the third quarter of 2025, Meta Platforms, Inc. (NASDAQ:META) reported revenue of $51.2 billion, representing an increase of 26% or 25% on a constant currency basis. While we acknowledge the risk and potential of Meta Platforms, Inc. (NASDAQ:META) 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 Meta Platforms, Inc. (NASDAQ:META) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared Wedgewood Partners’ views 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.
