Lakehouse Capital, a Sydney-based investment manager, published its “Lakehouse Global Growth Fund” investor letter for November 2025. The month was characterized by significant volatility in the global equity market, along with persistent enthusiasm for Generative AI. A copy of the letter is available to download here. Over the past year, the prevailing “risk-on” market sentiment has led to a decline in the Fund’s quality-growth style of investing. Although the portfolio’s market value has decreased over the last year, the underlying growth fundamentals remain strong. For the month, the Fund posted a return of -7.5% after fees and expenses, while its benchmark, the MSCI All Country World Index Net Total Returns (AUD), returned -0.2%. Since its inception in December 2017, the Fund returned 208.5%, surpassing its benchmark’s 163.8%. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Lakehouse Global Growth Fund highlighted stocks like Wix.com Ltd. (NASDAQ:WIX). Wix.com Ltd. (NASDAQ:WIX) is an Israel-based cloud-based web development platform for registered users and creators. On April 02, 2026, Wix.com Ltd. (NASDAQ:WIX) stock closed at $81.95 per share. One-month return of Wix.com Ltd. (NASDAQ:WIX) was -12.72%, and its shares lost 45.37% over the past 52 weeks. Wix.com Ltd. (NASDAQ:WIX) has a market capitalization of $4.78 billion.
Lakehouse Global Growth Fund stated the following regarding Wix.com Ltd. (NASDAQ:WIX) in its fourth quarter 2025 investor letter:
“Wix.com Ltd. (NASDAQ:WIX) delivered another strong and consistent quarter, with bookings and revenue in constant currency both accelerating 13% year-over-year to $515 million and $504 million. Growth was supported not only by new users but also by higher quality customers coming through Wix’s partner network who show stronger commercial intent, adopting higher subscription tiers and using more value-adding services such as payments. Underlying operating profit was broadly flat on the prior year as management reinvested in scaling the recently acquired Base44 business. Even with the reinvestment, free cash flow margins excluding acquisition-related transaction costs expanded 3 percentage points year-over-year to 32%, leaving the business comfortably above the Rule of 40 and trading at an attractive ~10 times 2026 free cash flow.
With the core business performing well, attention this quarter shifted to Base44, Wix’s newly acquired visual coding platform that enables users with limited or no coding experience to build standalone applications. Although visual coding has at times been flagged as a potential disruptor to website development tools like Wix, adoption to date has largely centred on application development rather than websites. In our view, the acquisition broadens Wix’s reach into the adjacent no-code application development category, complementing its core website-building offering.
Early traction has been encouraging. In less than six months under Wix’s ownership, Base44’s user base has grown sevenfold to more than 2 million users, and its annual recurring revenue has increased more than tenfold, with expectations of reaching about $50 million by the end of 2025. The product is already emerging as a category leader with more than 10% of audience traffic, and management has increased investment in marketing and AI compute capacity to support this momentum. This rapid uptake creates a short-term drag on margins, as users are mostly billed monthly while new cohorts consume more compute resources early in their usage cycle. While this may weigh on margins through 2026, investment levels remain within management’s control, and as Base44 scales alongside continued growth in Wix’s core business, we believe the company is well placed to return to margin expansion over time.”
Wix.com Ltd. (NASDAQ:WIX) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held Wix.com Ltd. (NASDAQ:WIX) at the end of the fourth quarter, compared to 71 in the previous quarter. In Q4 2025, Wix.com Ltd. (NASDAQ:WIX) reported revenue of $524 million, marking an increase of 14% year-over-year. While we acknowledge the risk and potential of Wix.com Ltd. (NASDAQ:WIX) 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 Wix.com Ltd. (NASDAQ:WIX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Wix.com Ltd. (NASDAQ:WIX) and shared ClearBridge Small Cap Growth Strategy’s views on the company. 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.
