Optimist Fund, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter is available to download here. Fund performance improved significantly in Q2, achieving a return of 36.3% as tensions in Iran eased. Since inception, it has met its goal of annualized returns of 16.5%. The outlook for the next five years is optimistic, with the portfolio viewed as comprising market leaders with strong growth potential and well-aligned management teams. Additionally, reviewing the Fund’s top five holdings could help identify its best picks for 2026.
In its Q2 2026 investor letter, Optimist Fund highlighted ThredUp Inc. (NASDAQ:TDUP). ThredUp Inc. (NASDAQ:TDUP) is a resale platform that allows the users to buy and sell primarily secondhand apparel, shoes, and accessories. On August 13, 2026, ThredUp Inc. (NASDAQ:TDUP) closed at $3.17 per share. One-month return of ThredUp Inc. (NASDAQ:TDUP) was -51.97%, and its shares lost 69.84% over the past 52 weeks. ThredUp Inc. (NASDAQ:TDUP) has a market capitalization of $416.33 million.
Optimist Fund stated the following regarding ThredUp Inc. (NASDAQ:TDUP) in its Q2 2026 investor letter:
“ThredUp Inc. (NASDAQ:TDUP) — Active buyers, orders, and revenue all beat expectations, growing 25%, 19%, and 15% year-over-year, and management guided Q2 to an acceleration across every trend. The Q1 beat was flowed through to full-year guidance, which we continue to view as conservative. The quieter but potentially bigger development: the direct listing program, where sellers list their own items on ThredUp, expanded from closed to open beta. The average direct-listed item has sold at more than double the price of the average clean-out-kit item, evidence that the program is capturing supply ThredUp wasn’t seeing before. We’ve baked nothing material from direct listings into our five-year estimates meaning the program is free upside optionality.”
ThredUp Inc. (NASDAQ:TDUP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 28 hedge fund portfolios held ThredUp Inc. (NASDAQ:TDUP) at the end of the first quarter, compared to 40 in the previous quarter. While we acknowledge the risk and potential of ThredUp Inc. (NASDAQ:TDUP) 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 ThredUp Inc. (NASDAQ:TDUP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ThredUp Inc. (NASDAQ:TDUP) and shared Optimist Fund’s decision to increase the holdings citing the compelling disconnect between fundamentals and valuation. In addition, please check out our hedge fund investor letters Q2 2026 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.
