13D Activist Fund is a mutual fund that focuses on companies invested in by shareholder activists. The fund released its Q3 2025 investor letter. The class I shared of the fund returned 8.88%, net of fees and expenses, in the quarter compared to 12.39% for the Russell 2000 Index. Overall, the fund was thrilled with its performance this quarter. However, on a relative basis, there is room for improvement. The Russell 2000 outperformed the S&P 500 by the largest margin in three years, with a return of 12.39% compared to the S&P 500’s 8.12%. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, 13D Activist Fund highlighted stocks such as BILL Holdings, Inc. (NYSE:BILL). BILL Holdings, Inc. (NYSE:BILL) provides cloud-based software solutions to simplify, digitize, and automate complex back-office financial operations. The one-month return of BILL Holdings, Inc. (NYSE:BILL) was 16.66%, and its shares lost 45.78% of their value over the last 52 weeks. On December 03, 2025, BILL Holdings, Inc. (NYSE:BILL) stock closed at $51.76 per share, with a market capitalization of $5.196 billion.
13D Activist Fund stated the following regarding BILL Holdings, Inc. (NYSE:BILL) in its third quarter 2025 investor letter:
“BILL Holdings, Inc. (NYSE:BILL) is a financial operations platform for small and midsize businesses (SMBs). The Company operates through a single operating segment but does disaggregate its revenue by solution. BILL Accounts Payable/Accounts Receivable covers its subscription and transaction fees for the operation of its platform which aids customers in processing invoices, streamlining approvals, making and receiving payments, and other functions. This business generated $668 million in 2025 or 46% of total revenue, of which about one-third came from subscription fees and the remainder from payment processing fees. BILL Spend and Expense covers the operation of its BILL Divvy Card, a business credit card company it acquired in 2021, expanding BILL’s reach to almost every outlet for corporate spend ($555 million of 2025 revenue, 38%). Embedded and Other Solutions covers sales of white label solutions to financial institutions and another acquired business called Invoice2go, which it has struggled to integrate ($78 million, 5%). Lastly, the Company generates meaningful revenue from interest on funds held for customers ($162 million, 11%).
BILL was founded in 2006 by CEO René Lacerte and IPO-ed in December 2019, opening at $37.25 far above its IPO price of $22. One would think that going public just months before the beginning of a global pandemic would not be accretive to shareholders, but BILL was a COVID darling. Given the global shutdown, many SMBs were forced to rapidly digitize their back-office functions, of which BILL was a provider of choice. The Company’s shares rocketed up to an all-time high of $342.26 by November 2021 and was ascribed a multiple of over 60x Price/Sales (P/S), making it one of the most expensive publicly traded tech companies at the time. BILL was rapidly growing the top line but consistently running losses as it reinvested for future and sustained growth…” (Click here to read the full text)
BILL Holdings, Inc. (NYSE:BILL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held BILL Holdings, Inc. (NYSE:BILL) at the end of the third quarter, which was 45 in the previous quarter. While we acknowledge the risk and potential of BILL Holdings, Inc. (NYSE:BILL) 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 BILL Holdings, Inc. (NYSE:BILL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered BILL Holdings, Inc. (NYSE:BILL) and shared the list of stocks defying the odds. In addition, please check out our hedge fund investor letters Q3 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.
