What Makes Reddit (RDDT) an Attractive Investment Bet?
NewBridge Asset Management, an investment management company, recently released its Q4 2025 letter for “NewBridge Large Cap Growth Equity Strategy”. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in the fourth quarter, driven by resilient economic growth and solid corporate returns. In the fourth quarter, large-cap growth outperformed, while in the third quarter, small-cap and value equities exceeded the growth strategy. The NewBridge Large Cap Growth Strategy generated a positive return in the quarter, but lagged behind the benchmark, the Russell 1000® Growth Index. Most portfolio companies exceeded quarterly expectations, but a few faced declines. The biggest challenge was the contrasting returns between Uber Technologies, Inc., held in significant amounts, and Tesla, Inc., which was not owned by the portfolio. The market environment was generally favorable for the portfolio in the fourth quarter. The firm remains confident in its industry-leading companies, which are poised to deliver attractive financial results despite potential market volatility. In addition, please check the Fund’s top five holdings to know its best picks in 2025. In its fourth-quarter 2025 investor letter, NewBridge Large Cap Growth Equity Strategy highlighted Reddit, Inc. (NYSE:RDDT) as a new addition. Headquartered in San Francisco, California, Reddit, Inc. (NYSE:RDDT) is a digital community platform. Reddit, Inc. (NYSE:RDDT) shares traded between $79.75 and $282.95 over the past 52 weeks. On January 26, 2026, Reddit, Inc. (NYSE:RDDT) stock closed at $213.63 per share. One-month return of Reddit, Inc. (NYSE:RDDT) was -8.45%, and its shares gained 0.31% of their value over the last three months. Reddit, Inc. (NYSE:RDDT) has a market capitalization of $40.482 billion. NewBridge Large Cap Growth Equity Strategy stated the following regarding Reddit, Inc. (NYSE:RDDT) in its fourth quarter 2025 investor letter: "Reddit, Inc. (RDDT) – Reddit is a well-established internet company and community platform. The company has a loyal user base and opportunities to expand and monetize advertising, as well as leverage its treasure trove of data for a growing number of AI-related use cases. Recent deals with high-profile leaders in the AI/LLM arena (GOOG, OpenAI) have proven successful, parlaying into a growing user base and further interest from advertisers. We see great potential for Reddit to expand its relevance due to the rapidly growing secular opportunities, paired with product growth initiatives and fundamental company strengths." VEON (VEON) Teams Up with P.I. Works to Enhance Customer Experience with AI Reddit, Inc. (NYSE:RDDT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 80 hedge fund portfolios held Reddit, Inc. (NYSE:RDDT) at the end of the third quarter, up from 74 in the previous quarter. Reddit, Inc. (NYSE:RDDT) announced third-quarter 2025 revenue of $585 million, reflecting a 68% year-over-year increase. While we acknowledge the potential of Reddit, Inc. (NYSE:RDDT) 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 also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Reddit, Inc. (NYSE:RDDT) and shared the list of best US stocks to buy and hold in 2026. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
