Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a standout period for US equities, led by optimism over the Federal Reserve’s dovish pivot and the ongoing boom in artificial intelligence (AI). The S&P 500® Index and the Nasdaq Composite surged, representing technology’s relentless momentum. In the quarter, the strategy returned +3.29% net of fees, compared to +8.00% and +8.12% returns for the Russell 1000 Index and the S&P 500 Index, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Mar Vista U.S. Quality Strategy highlighted stocks such as Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was -6.41%, and its shares gained 64.26% of their value over the last 52 weeks. On October 8, 2025, Oracle Corporation (NYSE:ORCL) stock closed at $288.63 per share, with a market capitalization of $822.824 billion.
Mar Vista U.S. Quality Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its third quarter 2025 investor letter:
“Oracle Corporation’s (NYSE:ORCL) stock responded positively to its FQ1 2026 (August quarter) results, which many on Wall Street have characterized as the company’s “NVIDIA moment.” Remaining Performance Obligations (RPO; like contracted bookings) increased by $317 billion sequentially, reaching approximately $455 billion. This unprecedented surge was driven by four multi-billion-dollar contracts with three large customers who support training and inference workloads for leading large language model providers.
Management outlined a multi-year revenue roadmap that calls for $144 billion in its OCI (Oracle Cloud Infrastructure) infrastructure-as-a-service (IaaS) revenue by FY 2030, a striking step-up from approximately $10 billion reported in FY 2025. The scale and duration of these contracts are unmatched in the industry, and Oracle expects additional multi-billion-dollar deals to push RPO beyond $500 billion by fiscal year-end 2026. We believe Oracle is emerging as a Tier-1 hyperscale cloud provider, now viewed as a true peer to Microsoft Azure, Google Cloud Platform, and AWS.
While IaaS revenue carries lower gross margins compared to Oracle’s core database and enterprise SaaS (software-as-a-service) businesses, the sheer scale of growth is set to drive accelerating revenue and EPS expansion over the intermediate term. We continue to hold our position in ORCL as the company gains meaningful share in the rapidly expanding generative AI market.”
Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 124 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the second quarter, up from 97 in the previous quarter. While we acknowledge the risk and potential of Oracle Corporation (NYSE:ORCL) 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 Oracle Corporation (NYSE:ORCL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Oracle Corporation (NYSE:ORCL) and shared the list of the most promising stocks that pay dividends. ClearBridge Large Cap Growth Strategy initiated a position in Oracle Corporation (NYSE:ORCL) during Q3 2025 citing its continued growth potential. 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.
