Optimist Fund, an investment management company, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The first quarter was characterized by significant volatility, influenced by geopolitical tensions and uncertainties in global trade policy. While these macroeconomic factors caused short-term market fluctuations, they do not alter the firm’s long-term investment strategy or expectations for returns. The fund returned -4.9% in Q1 compared to -7.5% for its benchmark. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Optimist Fund highlighted stocks such as ThredUp Inc. (NASDAQ:TDUP). ThredUp Inc. (NASDAQ:TDUP) an online resale platform that helps consumers buy and sell primarily secondhand apparel, shoes, and accessories. The one-month return of ThredUp Inc. (NASDAQ:TDUP) was 93.03%, and its shares gained 216.92% of their value over the last 52 weeks. On May 8, 2025, ThredUp Inc. (NASDAQ:TDUP) stock closed at $6.37 per share with a market capitalization of $753.233 million.

Optimist Fund stated the following regarding ThredUp Inc. (NASDAQ:TDUP) in its Q1 2025 investor letter:

"ThredUp Inc. (NASDAQ:TDUP) – As highlighted in our Q4 letter, ThredUp preannounced strong results in January, pointing to a meaningful acceleration in both revenue growth and margin expansion. In March, the company issued conservative 2025 guidance, which we believe positions it well to continue to outperform market expectations. Due to having a market cap of just $400 million, ThredUp remains largely under the radar—but we expect that to change over the next 12–18 months as its improving fundamentals attract broader investor attention. It’s currently a top three position in the portfolio, and we believe its best days remain ahead."Is ThredUp Inc. (TDUP) the Best Performing NASDAQ Stock So Far in 2025?

A satisfied customer leaving an online resale store with an armload of purchases.

ThredUp Inc. (NASDAQ:TDUP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held ThredUp Inc. (NASDAQ:TDUP) at the end of the fourth quarter which was 11 in the previous quarter. In the first quarter ThredUp Inc. (NASDAQ:TDUP) reported revenue of $71.3 million, marking a 10.5% year-over-year increase. While we acknowledge the potential of ThredUp Inc. (NASDAQ:TDUP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Story Continues

In another article, we covered ThredUp Inc. (NASDAQ:TDUP) and shared the list of best performing NASDAQ stocks so far in 2025. In its Q4 2024 investor letter Optimist Fund highlighted ThredUp Inc.'s (NASDAQ:TDUP) growth trajectory and strategic initiatives. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.

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