Lakehouse Capital, a Sydney-based investment manager, published its “Lakehouse Global Growth Fund” investor letter for February 2026. A copy of the letter can be downloaded here. February proved to be a tough month for the Fund, mainly because of the ongoing “AI disruption” narrative. During this period, the Fund’s net value declined by 14.6% after fees and expenses, whereas its benchmark, the MSCI All Country World Index Net Total Returns (AUD), fell by only 0.4%. The Fund’s quality-growth investment style is facing pressure, especially in enterprise software, due to concerns over AI potentially replacing traditional software. However, the Fund believes that software companies with mission-critical enterprise platforms can leverage their strengths to thrive in an AI-driven world. Consequently, the Fund increased its holdings in companies that are more resilient than the market perceives. Despite the decrease in market value of the portfolio, the Fund believes that the fundamental growth of the holdings remains healthy. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Lakehouse Global Growth Fund highlighted stocks like Workiva Inc. (NYSE:WK). Workiva Inc. (NYSE:WK) is a software company that provides cloud-based reporting solutions for financial reporting, compliance, and risk management. On April 15, 2026, Workiva Inc. (NYSE:WK) closed at $56.47 per share. One-month return of Workiva Inc. (NYSE:WK) was -6.72%, and its shares lost 15.07% over the past 52 weeks. Workiva Inc. (NYSE:WK) has a market capitalization of $3.27 billion.
Lakehouse Global Growth Fund stated the following regarding Workiva Inc. (NYSE:WK) in its Q1 2026 investor letter:
“Workiva Inc. (NYSE:WK) provides the leading cloud-based reporting and compliance platform that has become the global standard for complex corporate reporting. It is deeply embedded in 95% of the Fortune 100, shifting enterprises from siloed, manual spreadsheets to a connected, trusted data platform. Over 40% of the company’s revenue is derived from its SEC filing service, which simplifies SEC filings and other disclosures for public companies. The platform is mission-critical, with “compliance-driven” demand leading to a very sticky customer base; 97% gross- and 113% net- revenue retention.
Recent results were thesis affirming. Revenue grew 20% to $885 million, with subscription revenue outstripping the headline at 22%. The most pleasing element was the rapid margin expansion: non-GAAP operating margins more than doubled from 4.3% in 2024 to 9.9% in 2025, with a robust 19.1% margin in the final quarter. This performance was underpinned by good progress moving up-market, with customers over $300k in ACV growing 42%, and those over $500k increasing 37%. These “large land” wins are important as they indicate that Workiva is no longer just a “point solution” for SEC filings but a foundational platform for the entire office of the CFO…” (Click here to read the full text)
Workiva Inc. (NYSE:WK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 42 hedge fund portfolios held Workiva Inc. (NYSE:WK) at the end of the fourth quarter, up from 30 in the previous quarter. Workiva Inc.’s (NYSE:WK) Q4 2025 subscription revenue increased 21% year-over-year to $219 million. While we acknowledge the risk and potential of Workiva Inc. (NYSE:WK) 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 Workiva Inc. (NYSE:WK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Workiva Inc. (NYSE:WK) and shared Lakehouse Global Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 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.
