Rowan Street Capital’s Q4 2025 investor letter revealed solid results but underperformance compared to the S&P 500 Index. The Composite returned +11.1% (net) in 2025, with a cumulative net return of +252% over three years. Tesla was a key driver in 2025. Their strategy focuses on long-term compounding with a concentrated portfolio.

In Q4 2025, Rowan Street Capital highlighted Meta Platforms, Inc. (NASDAQ:META). The stock closed at $677.22 per share on February 9, 2026, with a one-month return of 7.31%. Meta Platforms, Inc. (NASDAQ:META) lost 5.92% of its value over the past 52 weeks and has a market cap of $1.713 trillion.

Meta Platforms, Inc. (NASDAQ:META) is Rowan Street Capital’s largest position, held for almost eight years with a 19% annual compounding rate. The stock is third on the list of 30 Most Popular Stocks Among Hedge Funds, with 273 portfolios holding it in Q3 2025. While Meta Platforms, Inc. (NASDAQ:META) has potential, other AI stocks offer greater upside with less downside risk.

Read more at Yahoo Finance: Meta Platforms (META) Illustrates the Power of Compounding