Magellan Asset Management, an investment management company, released the fourth quarter 2025 investor letter for “Magellan Global Fund”. A copy of the letter can be downloaded here. The fund focuses on investing in outstanding companies at attractive prices and, at the same time, leverages a deep understanding of the macroeconomic landscape to manage risk. As measured by the MSCI World Index in USD, the global equities rose 3.1% in the December quarter and 2.5% in AUD terms. The portfolio underperformed the benchmark this quarter, returning 0.1%, amid choppy trading and market rotation. The leadership began to shift from AI Mega Cap stocks to sectors with stronger fundamentals and better valuations. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Magellan Global Fund highlighted Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META), the parent company of dominant social media platforms, is a multinational technology company that develops products to connect people. On April 2, 2026, Meta Platforms, Inc. (NASDAQ:META) stock closed at $574.46 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was -10.92%, and its shares gained 13.82% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.45 trillion.
Magellan Global Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its fourth quarter 2025 investor letter:
“The largest detractors to the portfolio’s performance over the quarter were Microsoft, Netflix and Meta Platforms, Inc. (NASDAQ:META). Meta shares sold off following mixed 3Q25 results. Meta’s core advertising business continues to post impressive results, as investments in enhancing content recommendations to drive user engagement and optimise ad targeting bear fruit. However, management doubling down on the investment cycle with uncertain returns from non-core initiatives has weighed on sentiment. While dampening near-term earnings, we expect these investments in superintelligence to either deliver attractive returns or be significantly scaled back.”
Meta Platforms, Inc. (NASDAQ:META) holds 5th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 256 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the fourth quarter, compared to 273 in the previous quarter. 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 the list of best blue chip AI stocks to buy. 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.
