Optimist Fund, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund’s objective is to achieve capital growth at a rate in the mid-teens or higher over the course of several decades. In Q4 2025, the Fund declined 8.5%. The Fund, although not yet five years old, invests with a five-year perspective. While short-term drawdowns can be tough, the Fund is optimistic about the portfolio’s fundamental performance and confident in prospective returns over the next five years. The Fund believes that current valuations significantly underestimate the earnings and cash flow the core holdings will produce in five years. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Optimist Fund highlighted stocks like 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 February 27, 2026, ThredUp Inc. (NASDAQ:TDUP) stock closed at $4.88 per share. One-month return of ThredUp Inc. (NASDAQ:TDUP) was -2.40%, and its shares gained 118.83% over the past 52 weeks. ThredUp Inc. (NASDAQ:TDUP) has a market capitalization of $610.69 million.
Optimist Fund stated the following regarding ThredUp Inc. (NASDAQ:TDUP) in its fourth quarter 2025 investor letter:
“ThredUp Inc. (NASDAQ:TDUP) – ThredUp delivered an excellent third quarter, with revenue up approximately 34% year over year, one of the fastest growth rates in its recent history. Adjusted EBITDA improved to $3.8 million, or a 4.6% margin, from roughly breakeven last year, while active buyers increased about 26%, driven by strong new buyer acquisition. Management also raised full year revenue guidance, signaling confidence in the outlook.
Notably, management highlighted that new buyer growth accelerated to 81% year over year in October, up from 54% in Q3, following a rebrand and the launch of a new product recommendation feed in late September.
While fundamentals continue to strengthen, the stock has declined over the past five months. These dislocations between price and fundamentals are common in the types of businesses we invest in and have led us to add to the position. ThredUp remains our largest holding.”
ThredUp Inc. (NASDAQ:TDUP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 40 hedge fund portfolios held ThredUp Inc. (NASDAQ:TDUP) at the end of the fourth quarter, up from 31 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 a list of stocks on Jim Cramer’s radar. In its Q3 2025 investor letter, Optimist Fund highlighted ThredUp Inc. (NASDAQ:TDUP) as a high conviction stock stating its fastest growth in years. 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.
