Immersion Investment Partners, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Immersion Investment Partners returned 4.9% (net) in Q4 2025, compared to the Russell 2000Index’s 2.2% return and the Russell Microcap Index’s 6.3% gain. The yearly return was 45.4% compared to 12.8% and 23.0% returns for the indexes, respectively. The letter noted the massive investments being made in AI and raised concerns about energy demands and unclear monetization paths. The market is broadly penalizing tech companies whose business models aren’t adapting to AI, creating potential investment opportunities for those with innovative business models. The firm always makes careful decisions and maintains discipline when opportunities arise. Please review the Partnership’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Immersion Investment Partners highlighted stocks like Dutch Bros Inc. (NYSE:BROS). Dutch Bros Inc. (NYSE:BROS) is a US-based drive-thru shop incorporated in 1992. On February 3, 2026, Dutch Bros Inc. (NYSE:BROS) stock closed at $53.49 per share. Dutch Bros Inc. (NYSE:BROS) delivered a -15.38% return in the past month, and its shares are down 18.58% over the past twelve months. Dutch Bros Inc. (NYSE:BROS) has a market capitalization of $8.804 billion.
Immersion Investment Partners stated the following regarding Dutch Bros Inc. (NYSE:BROS) in its fourth quarter 2025 investor letter:
“Dutch Bros Inc. (NYSE:BROS) – (Doubted Champion) is a position that we have held since May 2024 and is now a top five holding in the fund. We believe that Dutch Bros is a rare, compelling restaurant asset in the public market landscape. It shares similar favorable long-term trends to restaurant success stories like Wingstop and Domino’s but is much earlier in its growth trajectory. Even more appealing is that it carries with it a cult-like following similar to Chick-fil-A or In-N-Out Burgers.
Founded in 1992, Dutch Bros is a drive-thru quick-service restaurant concept that focuses on coffee, energy drinks, and other refreshments like teas, lemonades, and smoothies. Originally starting as a pushcart coffee stand in Grants Pass, Oregon, the concept has grown to more than 1,000 locations in 25 states. Dutch Bros sets itself apart through the intangibles that create a durable long-term growth story. Management places an obsessive focus on culture, which is evident in the way that each location interacts with and serves customers. Every team member, or ‘Broista’, is hired based on having outgoing personality traits and trained on making connections with customers. This results in rank-and-file employee turnover half that of the QSR/fast casual average, and manager turnover 80% lower than industry average… (Click here to read the full text)
Dutch Bros Inc. (NYSE:BROS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held Dutch Bros Inc. (NYSE:BROS) at the end of the third quarter, up from 44 in the previous quarter. While we acknowledge the risk and potential of Dutch Bros Inc. (NYSE:BROS) 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 Dutch Bros Inc. (NYSE:BROS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Dutch Bros Inc. (NYSE:BROS) and shared a list of high growth food stocks to buy. 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.
