Rowan Street Capital released its Q4 2025 investor letter, reporting a +11.1% net return for the year, underperforming the S&P 500 Index’s +17.9%. The Composite had a cumulative net return of +252% over the past three years, with Tesla being a key driver of performance. The firm focuses on a concentrated strategy for long-term compounding and has shared its top five holdings for 2025. In the letter, Rowan Street highlighted Shopify Inc. (NASDAQ: SHOP), a Canada-based e-commerce technology company. Shopify’s stock closed at $118.40 per share on February 9, 2026, with a market cap of $154.522 billion.

Rowan Street Capital initiated its investment in Shopify Inc. (NASDAQ: SHOP) in Q1 2022, believing it was a high-quality business at a reasonable price despite a decline in the stock. While Shopify is not among the 30 most popular stocks among hedge funds, 91 hedge fund portfolios held the stock at the end of Q3 2025. Rowan Street sees potential in Shopify but believes other AI stocks offer greater upside potential with less downside risk. If seeking an undervalued AI stock benefiting from Trump-era tariffs, check out their free report on the best short-term AI stock.

Read more at Yahoo Finance: Shopify (SHOP) Stock Surge Validates Rowan Street Capital’s Thesis