Immersion Investment Partners, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Immersion Investment Partners returned 4.9% (net) in Q4 2025, compared to the Russell 2000Index’s 2.2% return and the Russell Microcap Index’s 6.3% gain. The yearly return was 45.4% compared to 12.8% and 23.0% returns for the indexes, respectively. The letter noted the massive investments being made in AI and raised concerns about energy demands and unclear monetization paths. The market is broadly penalizing tech companies whose business models aren’t adapting to AI, creating potential investment opportunities for those with innovative business models. The firm always makes careful decisions and maintains discipline when opportunities arise. Please review the Partnership’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Immersion Investment Partners highlighted stocks like Mama’s Creations, Inc. (NASDAQ:MAMA). Mama’s Creations, Inc. (NASDAQ:MAMA) is a food company that manufactures and markets fresh deli-prepared foods. On February 3, 2026, Mama’s Creations, Inc. (NASDAQ:MAMA) stock closed at $15.38 per share. Mama’s Creations, Inc. (NASDAQ:MAMA) delivered a 22.06% return in the past month, and its shares are up 97.69% over the past twelve months. Mama’s Creations, Inc. (NASDAQ:MAMA) has a market capitalization of $625.248 million.
Immersion Investment Partners stated the following regarding Mama’s Creations, Inc. (NASDAQ:MAMA) in its fourth quarter 2025 investor letter:
“After the close of the market on December 8th, Mama’s Creations, Inc. (NASDAQ:MAMA) – (Doubted Champion) reported exceptional operating results for its third fiscal quarter ending October 31. The quarter was nearly flawless, especially when one considers that the company is in the midst of integrating a large acquisition ($50 million in acquired sales vs. $140 million in LTM sales pre acquisition). Net sales grew 50% to $47.3 million, coming in ahead of consensus expectations for $43.2 million, driven by the recent acquisition of Crown, which contributed $10 million in revenue during the quarter, and 18% organic sales growth. Nearly 15 ]of the 18 percentage points was via volume growth and the remainder came from price and product mix. Performance was broad based across channels and geographies, with every area of the country growing 15% or greater. Regarding Crown, management has described the implementation as seamless. The asset is a natural fit for MAMA, seeing as its primary 45,000-square-foot processing facility is located just 10 miles from MAMA’s existing Farmingdale, NY, facility and operates a similar grill system. A smooth transition is evident in margins coming in meaningfully ahead of expectations – gross margin was 23.6% vs. consensus of 21.9% and EBITDA margin was 8% vs. 6.1% consensus. In total, the company generated $3.8 million in adjusted EBITDA vs. $1.74 million a year ago and $3.7 million in free cash flow vs. a $1.9 million outflow in the year-ago quarter, due to upgrades at the Farmingdale facility…” (Click here to read the full text)
Mama’s Creations, Inc. (NASDAQ:MAMA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 9 hedge fund portfolios held Mama’s Creations, Inc. (NASDAQ:MAMA) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Mama’s Creations, Inc. (NASDAQ:MAMA) 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 Mama’s Creations, Inc. (NASDAQ:MAMA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Mama’s Creations, Inc. (NASDAQ:MAMA) and shared the list of high growth food stocks to buy. In its Q3 2025 investor letter, Immersion Investment Partners highlighted Mama’s Creations, Inc.’s (NASDAQ:MAMA) acquisition of Crown I Enterprises. 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.
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