Sands Capital Management, LLC‘s Technology Innovators Fund released its Q4 2025 investor letter for “Technology Innovators Fund”. A copy of the letter can be downloaded here. The Fund delivered mixed performance during the fourth quarter of 2025, as market returns were increasingly driven by a narrow group of large-cap growth stocks, with the portfolio’s top ten holdings accounting for roughly 59% of assets, while several high-valuation innovation names faced pressure from slowing momentum and investor risk aversion. The fund’s results reflected stock-specific challenges rather than broad macroeconomic shocks, with weaker performance in certain emerging technology holdings offset by strength in select platform and infrastructure businesses. During the quarter, the portfolio declined 6.3% on a quarter-to-date basis, and the fund generated a 14.7% return over the one year, reflecting stock-specific challenges rather than broad macroeconomic shocks, with weaker performance in certain emerging technology holdings offset by strength in select platform and infrastructure businesses. Management emphasized its long-term investment horizon, noting an average annual portfolio turnover of 21%, and stated that many portfolio companies continued to generate solid full-year earnings growth in 2025, supported by durable revenue models tied to artificial intelligence, cloud computing, and digital transformation, even as enthusiasm for speculative growth faded late in the quarter. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks like Roblox Corporation (NYSE:RBLX). Roblox Corporation (NYSE:RBLX) operates an online gaming and virtual experience platform that monetizes through in-game purchases and a growing global user base. The one-month return of Roblox Corporation (NYSE:RBLX) was -14.38% while its shares traded between $50.10 and $150.59 over the last 52 weeks. On February 17, 2026, Roblox Corporation (NYSE:RBLX) stock closed at approximately $63.00 per share, with a market capitalization of about $45.96 billion.
Sands Capital Technology Innovators Fund stated the following regarding Roblox Corporation (NYSE:RBLX) in its Q4 2025 investor letter:
“Roblox Corporation (NYSE:RBLX) is a leading gaming development and distribution platform. Shares declined in the fourth quarter after management projected a notable increase in expenses and capital expenditures in 2026 and issued a cautious growth outlook, citing potential engagement risks from new age-based communication controls. This update amplified existing concerns that growth may normalize in the coming quarters, following an extraordinary 91 percent year-over-year engagement increase in the third quarter, driven by several hit game launches. While we continue to monitor engagement trends, we believe expectations have now reset to more appropriately conservative levels. Our research suggests that expanding engagement and monetization reflects Roblox’s evolution into a platform business, rather than a dependence on individual game successes.”
Roblox Corporation (NYSE:RBLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 90 hedge fund portfolios held Roblox Corporation (NYSE:RBLX) at the end of the third quarter, which was 75 in the previous quarter. While we acknowledge the risk and potential of Roblox Corporation (NYSE:RBLX) 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 Roblox Corporation (NYSE:RBLX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Roblox Corporation (NYSE:RBLX) and shared the list of best innovative stocks to buy according to Wall Street analysts. 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.
