Mar Vista Investment Partners, LLC, an investment management company, released its “Mar Vista U.S. Quality Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities experienced a strong momentum in 2025 and marked their second 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’s U.S. Quality strategy reported +0.20% 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. Stock selection in the communication services, consumer discretionary, and financials sectors was favorable to its performance, while stock selection in information technology, materials, and healthcare detracted from its performance. 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 Strategy highlighted stocks such as Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) weighed on the Strategy’s performance in the quarter. Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments. The one-month return of Oracle Corporation (NYSE:ORCL) was 8.50%, and its shares gained 30.94% of their value over the last 52 weeks. On January 12, 2026, Oracle Corporation (NYSE:ORCL) stock closed at $204.68 per share, with a market capitalization of $588.07 billion.
Mar Vista U.S. Quality Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its fourth quarter 2025 investor letter:
“Investor enthusiasm for Oracle Corporation’s (NYSE:ORCL) stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL’s growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle.
As a result, investors grew increasingly concerned about Oracle’s ability to fund these investments and the concentration of future revenue exposure tied to OpenAI. While OpenAI is an early leader in artificial intelligence with nearly 900 million weekly average users, it remains relatively unproven given the scale and duration of its contractual commitments. We recognize the risks associated with OpenAI’s ability to fund these obligations and to successfully monetize its platform beyond consumer subscriptions, including through advertising and deeper penetration of the enterprise IT market.
Given the widening range of potential outcomes associated with Oracle’s elevated capital needs, we reduced our position in ORCL during Q4. We continue to maintain a smaller weighting, as we believe Oracle is capable of managing its capital requirements and generating attractive long-term returns from these investments.”
Oracle Corporation (NYSE:ORCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 122 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the third quarter, which was 124 in the previous quarter. In the second quarter of fiscal 2026, Oracle Corporation (NYSE:ORCL) reported total revenues of $16.1 billion, up 14% compared to last year’s comparable 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 best NYSE stocks to buy according to analysts. ClearBridge Dividend Strategy reduced its holdings in Oracle Corporation (NYSE:ORCL) in Q4 2025. 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.
