Optimist Fund, an investment management company, published its Q4 2025 investor letter. A copy of the letter can be downloaded here. The Fund’s objective is to achieve capital growth at a rate of around 10 or more over several decades. In the fourth quarter of 2025, the Fund fell 8.5%. The Fund, although not yet five years old, invests with a five-year outlook. While near-term withdrawals may be difficult, the Fund is optimistic about the fundamental performance of the portfolio and confident in potential returns over the next five years. The Fund believes that current valuations significantly underestimate the earnings and cash flow that the core holdings will produce in five years. Also, check out the Fund’s top five holdings to learn your best picks in 2025.
In its Q4 2025 investor letter, Optimist Fund highlighted stocks like ThredUp Inc. (NASDAQ:TDUP). ThredUp Inc. (NASDAQ:TDUP) is a resale platform that allows users to buy and sell primarily second-hand clothing, shoes, and accessories. On February 27, 2026, ThredUp Inc. (NASDAQ:TDUP) stock closed at $4.88 per share. ThredUp Inc. (NASDAQ:TDUP)’s monthly performance was -2.40% and its shares gained 118.83% in the past 52 weeks. ThredUp Inc. (NASDAQ:TDUP) has a market capitalization of $610.69 million.
Optimist Fund stated the following regarding ThredUp Inc. (NASDAQ:TDUP) in its Q4 2025 investor letter:
“ThredUp Inc. (NASDAQ:TDUP) – ThredUp had a great third quarter, with revenue increasing approximately 34% year over year, one of the fastest growth rates in its recent history. Adjusted EBITDA improved to $3.8 million, or a 4.6% margin, from roughly break-even last year, while active buyers increased about 26%, driven by strong acquisition of new buyers. Management also raised full-year revenue guidance, indicating confidence in the outlook.
ThredUp Inc. (NASDAQ:TDUP) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, ThredUp Inc. (NASDAQ:TDUP) had 40 hedge fund portfolios at the end of the fourth quarter, up from 31 in the previous quarter. While we recognize the potential of ThredUp Inc. (NASDAQ:TDUP) as an investment, we believe certain AI stocks offer greater upside 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.