Sustainable Momentum Drove Sea Limited’s (SE) Performance in Q2

Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” May 2025 investor letter. A copy of the letter can be downloaded here. May proved to be a favorable month for the Fund, driven by a boost in investor sentiment and solid results from portfolio holdings. Overall, the firm remains satisfied with the strong fundamental performance and long-term growth outlook of its portfolio holdings. The Fund returned 6.1% net of fees and expenses for the month compared to 5.1% for its benchmark. Since its inception in December 2017, the Fund has returned 250.6% compared to 133.8% for its benchmark, the MSCI All Country World Index, Net Total Returns (AUD). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its May 2025 investor letter, Lakehouse Global Growth Fund highlighted stocks such as Sea Limited (NYSE:SE). Headquartered in Singapore, Sea Limited (NYSE:SE) is a consumer internet company that operates through E-commerce, Digital financial services, and Digital entertainment segments. The one-month return of Sea Limited (NYSE:SE) was -12.28%, and its shares gained 109.08% of their value over the last 52 weeks. On July 3, 2025, Sea Limited (NYSE:SE) stock closed at $149.47 per share, with a market capitalization of $88.489 billion.

Lakehouse Global Growth Fund stated the following regarding Sea Limited (NYSE:SE) in its May 2025 investor letter:

“Sea Limited (NYSE:SE) delivered another impressive result, with sustained momentum driving solid top-line growth and continued progress on profitability. Group revenue grew 30% to US$4.8 billion, driven by strong performance from the company’s e-commerce platform, Shopee, and its fintech business, Monee. Shopee further extended its market leadership across Asia and Brazil, with record GMV rising 22% to US$28.6 billion and continued improvement in its take rate, up 60 basis points to 12.3%. Monee accelerated its growth with their loan book rising 77% to US$5.8 billion, driven by a >50% increase in active borrowers to over 28 million whilst maintaining sound credit quality. Combined with strong operating leverage across all business units, this growth helped lift adjusted EBITDA 136% to US$947 million and continues to demonstrate Sea’s ability to deliver further profitable growth.”

Is Sea Limited (SE) The Best Cash App Stock To Buy According to Hedge Funds?

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Sea Limited (NYSE:SE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 84 hedge fund portfolios held Sea Limited (NYSE:SE) at the end of the first quarter compared to 86 in the previous quarter. Sea Limited’s (NYSE:SE) total revenue increased 30% year-on-year to $4.8 billion in the first quarter of 2025. While we acknowledge the potential of Sea Limited (NYSE:SE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Sea Limited (NYSE:SE) and shared Sands Capital Technology Innovators Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of SE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.