Wasatch Global Investors, an asset management company, published its Q3 2025 “Wasatch Micro-Cap Fund” investor letter. A copy of the letter can be downloaded here. Microcap stocks posted strong results in the quarter, due to investors’ continued risk appetite. The Investor Class fund returned 9.52% for the quarter, but lagged the 19.93% return of the benchmark Russell Microcap® Growth Index. Plus, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, Wasatch Micro-Cap Fund highlighted stocks like Vital Farms, Inc. (NASDAQ:VITL). Vital Farms, Inc. (NASDAQ:VITL) is a US-based food company that offers shell eggs, butter, and other products. Vital Farms, Inc. (NASDAQ:VITL)’s monthly performance was 2.60% and its stock lost 15.36% in the past 52 weeks. On December 17, 2025, Vital Farms, Inc. (NASDAQ:VITL) stock closed at $32.79 per share, with a market capitalization of $1.47 billion.
Wasatch Micro-Cap Fund stated the following regarding Vital Farms, Inc. (NASDAQ:VITL) in its Q3 2025 investor letter:
“Vital Farms, Inc. (NASDAQ:VITL) is a supplier of specialty eggs and butter from small farms and pasture-raised animals. Consumers are increasingly focusing on the provenance of the food they consume, both with respect to the health implications and the treatment of the animals involved. The farms Vital uses are subject to various requirements in terms of acreage per chicken and the like, and consumers can use product packaging to trace the company’s products to a specific farm. We began accumulating shares at a reasonable valuation during a period when Vital’s growth was slowing due to capacity constraints. The company has been successfully adding farms to its supplier network and the stock was supported in the quarter as Vital Farms posted earnings that beat expectations and beat guidance. The stock was one of our largest holdings at the start of the quarter, and while we have since trimmed the position, we view Vital Farms’ increasing consumer focus on ethical and sustainable food sources as a lasting trend.”
Vital Farms, Inc. (NASDAQ:VITL) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, Vital Farms, Inc. (NASDAQ:VITL) had 33 hedge fund portfolios at the end of the third quarter, up from 23 in the previous quarter. In Q3 2025, Vital Farms, Inc. (NASDAQ:VITL) reported net income of $198.9 million, up 37.2% from Q3 2024. While we recognize the potential of Vital Farms, Inc. (NASDAQ:VITL) as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.