Optimist Fund, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund’s objective is to achieve capital growth at a rate in the mid-teens or higher over the course of several decades. In Q4 2025, the Fund declined 8.5%. The Fund, although not yet five years old, invests with a five-year perspective. While short-term drawdowns can be tough, the Fund is optimistic about the portfolio’s fundamental performance and confident in prospective returns over the next five years. The Fund believes that current valuations significantly underestimate the earnings and cash flow the core holdings will produce in five years. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Optimist Fund highlighted stocks such as Monday.com Ltd. (NASDAQ:MNDY). Monday.com Ltd. (NASDAQ:MNDY) develops software applications and work management tools. The one-month return of Monday.com Ltd. (NASDAQ:MNDY) was -36.73%, and its shares lost 75.54% of their value over the last 52 weeks. On February 26, 2026, Monday.com Ltd. (NASDAQ:MNDY) stock closed at $75.60 per share, with a market capitalization of $3.747 billion.
Optimist Fund stated the following regarding Monday.com Ltd. (NASDAQ:MNDY) in its fourth quarter 2025 investor letter:
“Monday.com Ltd. (NASDAQ:MNDY) – In November, Monday.com reported a mixed quarter, with revenue and free cash flow growing approximately 26% and 10% year over year, respectively. Enterprise performance continued to accelerate, while growth in small and mid sized customers further decelerated.
We held the position through year end and into 2026, believing management could execute against the objectives they had outlined, supported by a strong historical track record. However, following the company’s fourth quarter earnings release earlier this week, we have fully exited the position. The reported results were not aligned with our forecasts, and more importantly, management was unable to clearly articulate what is occurring within the business.
When we lose confidence in the accuracy or clarity of management’s communication, we exit. That is what we have done here.”
Monday.com Ltd. (NASDAQ:MNDY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Monday.com Ltd. (NASDAQ:MNDY) at the end of the fourth quarter, compared to 55 in the previous quarter. While we acknowledge the risk and potential of Monday.com Ltd. (NASDAQ:MNDY) 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 Monday.com Ltd. (NASDAQ:MNDY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Monday.com Ltd. (NASDAQ:MNDY) and shared a list of best beaten down software stocks with the highest upside potential. 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.
