Should You be Bullish on Gigacloud Technology’s (GCT) Long-Term Outlook?

Kathmandu Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 17.22% gross of fees and 16.64% net of fees compared to 10.56% for the Standard & Poor’s 500 Total Return Index and 11.52% for the MSCI ACWI Total Return benchmark. The portfolio experienced a ~30% swing over the past quarter, due to heightened market volatility stemming from tariff worries. Despite these worries, the portfolio delivered positive results driven by capital flows seeking opportunities outside the U.S. and a rebound in domestic equities as tariff worries began to ease. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Kathmandu Capital highlighted stocks such as GigaCloud Technology Inc. (NASDAQ:GCT). GigaCloud Technology Inc. (NASDAQ:GCT) is a technology company that provides end-to-end B2B ecommerce solutions for large parcel merchandise. The one-month return of GigaCloud Technology Inc. (NASDAQ:GCT) was 46.15%, and its shares gained 37.34% of their value over the last 52 weeks. On August 12, 2025, GigaCloud Technology Inc. (NASDAQ:GCT) stock closed at $30.75 per share, with a market capitalization of $1.158 billion.

Kathmandu Capital stated the following regarding GigaCloud Technology Inc. (NASDAQ:GCT) in its second quarter 2025 investor letter:

“GigaCloud Technology Inc. (NASDAQ:GCT): 1Q25 results came ahead of market expectations, driven by continued momentum in the 3P marketplace, which is successfully attracting more sellers to the platform. The integration of Noble House is also progressing well with positive profitability. While we suspect some order volumes may have been pulled forward due to tariff concerns and will likely moderate in the coming quarters, we remain bullish on the long-term outlook and believe the business offers a compelling margin of safety.”

Is GigaCloud Technology Inc. (GCT) the Best Small-Cap Growth Stock to Buy Now?

A mid-sized warehouse filled with furniture and home appliances.

GigaCloud Technology Inc. (NASDAQ:GCT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held GigaCloud Technology Inc. (NASDAQ:GCT) at the end of the first quarter, which was 14 in the previous quarter. GigaCloud Technology Inc.’s (NASDAQ:GCT) second quarter revenue grew 4% to $323 million driven by increased market recognition. While we acknowledge the risk and potential of GigaCloud Technology Inc. (NASDAQ:GCT) 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 GigaCloud Technology Inc. (NASDAQ:GCT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered GigaCloud Technology Inc. (NASDAQ:GCT) and shared the list of cheap new stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 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.