What Makes Circle Internet Group (CRCL) a Good Long-Term Holding?

Loomis Sayles, an investment management company, released its “Small/Mid Cap Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The quarter started with an extreme level of policy uncertainty but concluded with an all-time high for the S&P 500. In this environment, the fund lagged the Russell 2500 Growth Index benchmark in the quarter, returning 8.49% vs. 11.31% for the index. Security selection within the consumer discretionary and financials sectors led the underperformance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Loomis Sayles Small/Mid Cap Growth Fund highlighted stocks such as Circle Internet Group (NYSE:CRCL). Circle Internet Group (NYSE:CRCL) is a platform, network, and market infrastructure for stablecoin and blockchain applications. The one-month return of Circle Internet Group (NYSE:CRCL) was -11.48%, and its shares lost 17.04% of their value over the last three months. On September 12, 2025, Circle Internet Group (NYSE:CRCL) stock closed at $125.32 per share, with a market capitalization of $31.967 billion.

Loomis Sayles Small/Mid Cap Growth Fund stated the following regarding Circle Internet Group (NYSE:CRCL) in its second quarter 2025 investor letter:

“ATI, Circle Internet Group (NYSE:CRCL) and BWX Technologies were the top individual contributors to performance. Circle Internet Group is a global fintech firm that issues and manages USDC, the second largest stablecoin. Circle’s USDC is a proxy for digital cash and is widely used with cryptocurrency trading and for overseas clients that want to use USDC as a store of value for their US Dollars. We believe there are several long-term use cases such as cross-border and consumer payments that could dramatically grow Circle’s USDC market capitalization.”

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Circle Internet Group (NYSE:CRCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Circle Internet Group (NYSE:CRCL) at the end of the second quarter, which was 0 in the previous quarter. While we acknowledge the risk and potential of Circle Internet Group (NYSE:CRCL) 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 Circle Internet Group (NYSE:CRCL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Circle Internet Group (NYSE:CRCL) and shared the list of stocks investors are gobbling up. In addition, please check out our hedge fund investor letters Q2 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.