Voss Capital, LLC, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd both returned -7.3% to investors net of fees and expenses respectively, in the first quarter compared to a -9.5% return for the Russell 2000 Index, -7.7% return for the Russell 2000 Value Index, and -4.3% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 162.1% and the net long exposure was 70.4% as of March 31st, 2025. The weight of the fund’s top 10 longs was 65.9% and the top 10 shorts were -36.9%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, Voss Capital highlighted stocks such as SharkNinja, Inc. (NYSE:SN). SharkNinja, Inc. (NYSE:SN) is a product design and technology company that provides cleaning, cooking, beverage, food preparation, and beauty appliances. The one-month return of SharkNinja, Inc. (NYSE:SN) was 20.99%, and its shares gained 40.54% of their value over the last 52 weeks. On July 2, 2025, SharkNinja, Inc. (NYSE:SN) stock closed at $106.36 per share, with a market capitalization of $15.001 billion.
Voss Capital stated the following regarding SharkNinja, Inc. (NYSE:SN) in its Q1 2025 investor letter:
“During the “liquidation day” tariff malaise, we significantly upsized our position in SharkNinja, Inc. (NYSE:SN). We view SN as a secularly growing category leader with a unique blend of innovation and agility, brand equity, and global expansion potential. While some competitors dismiss SN as a mere imitator—quick to reverse-engineer their products and undercut them on price—they misunderstand the company’s MO and customer value proposition entirely.
SharkNinja is not chasing cheap fads that will fizzle—it’s an innovation powerhouse that routinely generates consumer phenomena and creates and expands new categories. From the wildly successful CREAMi and Ninja Swirl appliances, to the virality of the TurboBlade fan and CryoGlow beauty devices, the company orchestrates consumer product launches that begin with deep consumer insight and a better mousetrap, followed by organically viral social media buzz, and ends with dominant shelf space at major global retailers.
We think SN is poised for margin expansion. Gross margins hover around 50%, with a narrow range across categories. The company is investing heavily in R&D (7.2% of sales vs a peer average of ~3.5%) and sales & marketing (23%), but this spend is front-loaded to support market entry and new category expansion. In mature markets like the US, marketing spend can fall to as low as 7% of revenue, while new markets begin at 25%+ as the company builds brand awareness and shelf presence. Over time, this dynamic creates meaningful operating leverage. Additionally, as the company continues to build a direct line to customers, their sales mix is shifting more to higher gross and contribution margin direct-to-consumer (“DTC”) revenue. The company has been building out its DTC team and will revamp its website and CRM later this year. We estimate DTC sales in the U.S. are only around 10% today, providing a long runway for growth…” (Click here to read the full text)
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SharkNinja, Inc. (NYSE:SN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held SharkNinja, Inc. (NYSE:SN) at the end of the first quarter, which was 63 in the previous quarter. In the first quarter, SharkNinja, Inc.’s (NYSE:SN) net sales increased 14.7% year-over-year to more than $1.2 billion. While we acknowledge the potential of SharkNinja, Inc. (NYSE:SN) 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 SharkNinja, Inc. (NYSE:SN) and shared the list of best new stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. Parnassus Growth Equity Fund added SharkNinja, Inc. (NYSE:SN) to its portfolio during Q1 2025, in anticipation of durable above-industry growth. While we acknowledge the potential of SN 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.
