Optimist Fund Trimmed Its Position in Fiverr International Ltd. (FVRR). Here’s Why

Optimist Fund, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned +9.1% in the third quarter compared to 7.9% for the benchmark. The firm focuses on acceleration in several cyclical holdings in the portfolio that have been in multi-year downswings, while the world holds attention on the latest developments in AI. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Optimist Fund highlighted stocks such as Fiverr International Ltd. (NYSE:FVRR). Headquartered in Tel Aviv, Israel, Fiverr International Ltd. (NYSE:FVRR) is an online marketplace. The one-month return of Fiverr International Ltd. (NYSE:FVRR) was -5.50%, and its shares lost 26.53% of their value over the last 52 weeks. On October 30, 2025, Fiverr International Ltd. (NYSE:FVRR) stock closed at $22.18 per share, with a market capitalization of $819.172 million.

Optimist Fund stated the following regarding Fiverr International Ltd. (NYSE:FVRR) in its third quarter 2025 investor letter:

“Fiverr International Ltd. (NYSE:FVRR) – Fiverr’s results were fine but fell short of our expectations, leading us to trim the position to a 4% weight. Earlier this year, we doubled our position after the company launched a new AI product that we believed could meaningfully accelerate revenue growth in the near term.

Following Q2 reporting, our confidence in that acceleration materializing has moderated, prompting a reduction in position size.

We continue to view Fiverr’s risk/reward profile as attractive, but this adjustment reflects our dynamic approach to position sizing — increasing exposure when conviction rises and reducing it when near-term visibility becomes less clear.”

18 In Demand Skills for Freelancers in 2023

Fiverr International Ltd. (NYSE:FVRR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 18 hedge fund portfolios held Fiverr International Ltd. (NYSE:FVRR) at the end of the second quarter, compared to 17 in the previous quarter. While we acknowledge the risk and potential of Fiverr International Ltd. (NYSE:FVRR) 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 Fiverr International Ltd. (NYSE:FVRR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.