Browse the world's most comprehensive database of hedge fund investor letters, sorted by recent quarter. Access primary source research from leading institutional managers.
| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
|---|---|---|---|---|---|---|---|
Buyside Digest is not affiliated with, and does not endorse, Spyglass Capital Management. This analysis is provided for institutional research purposes only and is not investment advice.
"Spyglass aims to deliver long-term capital appreciation through a concentrated, low-turnover portfolio of 25 mid-cap growth stocks. Operating in secular growth industries, these leadership companies protect profitability with pricing power and fund expansion internally, positioning them to benefit from persistent inflation and higher interest rates."
Spyglass Capital Management seeks to extract alpha by paying discounted prices for high-quality, secular growth companies whose earnings power is poised to surprise the market to the upside. During the fourth quarter of 2025, the fund returned 0.53%, supported by exceptionally strong earnings growth among its portfolio companies that averaged 50% year-over-year. Key contributors included Exact Sciences, which agreed to be acquired by Abbott Laboratories, and MongoDB, which gained momentum as an AI winner. Conversely, Duolingo and Shift4 Payments lagged due to short-term monetization shifts and macroeconomic anxieties, respectively. The fund's risk profile remains anchored in secular growth leaders, though it is subject to risks from persistent above-average inflation, high interest rates, and competitive search engine changes. Maintaining a concentrated portfolio of exactly 25 holdings, Spyglass active capital deployment this quarter included introducing Carvana and Credo Technology, while completely exiting Sweetgreen and ACV Auctions.
Sign in or create a free account to unlock full commentary, extracted equity pitches, and direct outbound manager source links with your 3 quarterly credits.
Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.
Market Conviction
Spyglass exhibits high conviction, maintaining a concentrated portfolio of exactly 25 holdings. The manager demonstrates a strict 'one-in, one-out' discipline, naming specific trades, additions, and exits. Strong declarative statements support top ideas like Carvana and Credo.
Growth Outlook
The manager expresses optimism for 2026, driven by secular growth trends. However, they acknowledge persistent above-average inflation and higher interest rates, maintaining a constructive rather than unhedged bullish outlook.
Risk Appetite
Risk appetite remains elevated, with investments focused in high-beta secular growth names. This is offset slightly by a preference for established, profitable market leaders over speculative growth plays.
Capital Deployment
Capital deployment was largely balanced, matching two new stock purchases with two full exits, alongside the planned wind-down of the acquired Exact Sciences position.
Forward Guidance
The manager shows clear deployment intentions, currently winding down Exact Sciences to reallocate cash into a new position for the first quarter of 2026.
Language Signal
Language leans strongly positive with terms like 'optimistic,' 'durable advantage,' 'undervalued,' and 'significant growth story,' although balanced by mentions of 'macroeconomic anxiety' and 'intense competition.'
Perceived Risk
The manager notes structural macro risks such as inflation and rate cycles, but believes their focus on cash-generative leaders mitigates these threats effectively.
Opportunity Density
While finding compelling growth opportunities like Credo and Carvana, the manager restricts new buys to a strictly fixed 25-stock limit, implying selective rather than boundless opportunity density.
Time Horizon
The investment approach emphasizes a multi-year outlook, evaluating businesses on their growth prospects over the next decade, with minimal focus on near-term catalyst dependencies.
