In the second quarter of 2025, Prosper Stars & Stripes, a long/short equity fund, released its investor letter, reporting a net return of +9.6%. The fund underperformed compared to the Russell 2000 Index and HFRX Equity Hedge Index. Ranpak Holdings Corp. (NYSE:PACK) was a top pick, despite challenges like high leverage.

Ranpak Holdings Corp. (NYSE:PACK) experienced a one-month return of 52.16% and its shares lost 25.53% over the last 52 weeks. The company offers product protection services for e-commerce and industrial supply chains. It operates under a razor/razorblade model, selling high-margin, proprietary paper consumables. Amazon is a significant customer.

Ranpak Holdings Corp. (NYSE:PACK) was the largest detractor in Prosper Stars & Stripes’ portfolio during Q2 2025. Despite strong EBITDA margins, the company’s capital-intensive model limited free cash flow conversion. Market sentiment was pressured by tariff concerns, leading to the fund exiting its position in Ranpak.

While Ranpak Holdings Corp. (NYSE:PACK) was held in 21 hedge fund portfolios at the end of Q2 2025, Prosper Stars & Stripes believed certain AI stocks offer greater upside potential and less downside risk. The company’s performance was negatively impacted by heightened tariff concerns early in Q2, prompting the fund to exit the position.

Read more at Yahoo Finance: Here’s Why Prosper Stars & Stripes Sold Ranpak Holdings Corp. (PACK)