Rowan Road Capital, an funding administration firm, launched its This autumn 2025 investor letter. A replica of the letter could be downloaded right here. Rowan Road generated stable leads to 2025 however underperformed the S&P 500 Index. The Composite returned +11.1% (internet) in 2025 in comparison with +17.9% for the Index. Rowan Road delivered a cumulative internet return of +252% over the previous three years, in comparison with +78% for the Index throughout the identical interval. It’s a concentrated technique with a give attention to long-term compounding. 2025 efficiency was pushed by Tesla, its new place within the yr. Rowan Road invests in the identical set of corporations, permitting time and compounding to construct development. Please evaluate the Fund’s high 5 holdings to realize insights into their key picks for 2025.
In its fourth-quarter 2025 investor letter, Rowan Road Capital highlighted shares similar to Shopify Inc. (NASDAQ:SHOP). Shopify Inc. (NASDAQ:SHOP) is a Canada-based e-commerce know-how firm that gives a cloud-based platform for people and corporations to create and handle their operations. The one-month return for Shopify Inc. (NASDAQ:SHOP) was -29.29%, and its shares misplaced 4.20% over the past 52 weeks. On February 9, 2026, Shopify Inc. (NASDAQ:SHOP) inventory closed at $118.40 per share, with a market capitalization of $154.522 billion.
Rowan Road Capital acknowledged the next concerning Shopify Inc. (NASDAQ:SHOP) in its fourth quarter 2025 investor letter:
“We initiated our funding in Shopify Inc. (NASDAQ:SHOP) within the first quarter of 2022, after the inventory had already declined greater than 60% from its pandemic peak. Progress had slowed from extraordinary COVID-era ranges, sentiment towards know-how shares had turned sharply adverse, and valuation multiples have been compressing throughout the sector. On the time, we believed we have been paying an affordable value for a high-quality enterprise we had adopted for a few years.
Shopify Inc. (NASDAQ:SHOP) just isn’t on our checklist of 30 Most Well-liked Shares Amongst Hedge Funds. In keeping with our database, 91 hedge fund portfolios held Shopify Inc. (NASDAQ:SHOP) on the finish of the third quarter, in comparison with 69 within the earlier quarter. Whereas we acknowledge the potential of Shopify Inc. (NASDAQ:SHOP) as an funding, we imagine sure AI shares supply better upside potential and carry much less draw back danger. If you happen to’re on the lookout for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
