White Falcon Capital Management, an investment fund manager, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The White Falcon portfolio returned 5.6% (net of fees) in Q4 2025, resulting in a yearly return of 28.4%. The year has been notable, particularly with the “tariff tantrum” in April 2025 that saw markets drop nearly 20%, now fading into the past. Overall, the portfolio performed well, with only a few companies affecting a solid majority of positive results. The White Falcon portfolio consists of 20-25 carefully selected stocks that align with its quality and valuation standards, focusing on generating positive absolute returns adjusted for risk over a full market cycle. The portfolio’s preferred metric, the rolling three-year annualized return, currently stands at 25.9% CAGR, outpacing most major indices, including the S&P 500. As a long-term compounder, the firm is optimistic about its long-term prospects. The firm anticipates a significant increase in leverage associated with AI and expects major private companies to go public through IPOs. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, White Falcon Capital Management highlighted Canadian Solar Inc. (NASDAQ:CSIQ). Canadian Solar Inc. (NASDAQ:CSIQ) is a Canadian renewable energy company incorporated in 2001. On March 05, 2026, Canadian Solar Inc. (NASDAQ:CSIQ) stock closed at $16.64 per share. One-month return of Canadian Solar Inc. (NASDAQ:CSIQ) was -16.34%, and its shares gained 62.50% over the past 52 weeks. Canadian Solar Inc. (NASDAQ:CSIQ) has a market capitalization of $1.11 billion.
White Falcon Capital Management stated the following regarding Canadian Solar Inc. (NASDAQ:CSIQ) in its fourth quarter 2025 investor letter:
“To give credit where it’s due, George has a habit of casually asking, “Have you looked at stock xyz?” More often than not, it’s not immediately obvious why anyone would bother looking at such a name. Only after digging in do you uncover the real story. One such name this year wasCanadian Solar Inc. (NASDAQ:CSIQ). Ordinarily, a solar stock wouldn’t even make our list. But as I dug deeper, a few things stood out: (1) Solar has quietly become the cheapest source of power in many places around the world (without subsidies), (2) Panel manufacturing remains brutally competitive, but the stronger players are shifting toward full systems (including batteries), (3) Canadian Solar had a JV with Blackrock to build a power company, and (4) while Canadian Solar has most of its manufacturing in China, it was founded by a Canadian engineer who understands governance and transparency.
What ultimately pushed us to take a position was the valuation: the company was trading at roughly a quarter of its sum‑of‑the‑parts (SOTP) value. Our experience with discounts to SOTP situations is mixed. Usually, one asset or another has an issue that prevents the discount from ever closing. In this case, however, sentiment was so depressed – solar wasn’t exactly in favour politically in the US – that even modestly positive news was enough to re-rate the stock. We have a cost base of under $10 per share while the stock touched a high of $30 before retrenching back to $20 per share. Today, solar stocks have become AI beneficiaries as solar plus storage is seen as a viable option to supply clean power to datacenters.”
Canadian Solar Inc. (NASDAQ:CSIQ) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 20 hedge fund portfolios held Canadian Solar Inc. (NASDAQ:CSIQ) at the end of the fourth quarter, up from 14 in the previous quarter. While we acknowledge the risk and potential of Canadian Solar Inc. (NASDAQ:CSIQ) 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 Canadian Solar Inc. (NASDAQ:CSIQ) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Canadian Solar Inc. (NASDAQ:CSIQ) and shared a list of cheap solar 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.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
