Jackson Peak Capital’s Top Q4 Contributor: Confluent (CFLT)
Jackson Peak Capital, an investment management firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Jackson Peak Capital employs a concentrated long/short equity approach aimed at generating strong absolute returns across various market conditions. The firm aims to deliver returns similar to equities while reducing market risk and maintaining minimal correlation with the broader equity markets. However, its monthly and quarterly performance do not follow benchmarks closely due to low correlation with the ACWI since inception. In Q4 2025, Jackson Peak achieved a net return of +14.0%, driven by event-driven strategies, fundamental long positions, and net exposure management. During the same period, the All-Country World Index (ACWI) increased by 3.3%, and the HFRX Equity Hedge Index rose by 1.6%. The portfolio's net exposure decreased from 55% in Q3 to 25% at the end of Q4. According to the firm, the future holds strong fundamental and event-driven opportunities. In addition, please check the firm’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Jackson Peak Capital highlighted stocks like Confluent, Inc. (NASDAQ:CFLT). Confluent, Inc. (NASDAQ:CFLT) is a technology company that operates a data streaming platform. On February 20, 2026, Confluent, Inc. (NASDAQ:CFLT) stock closed at $30.70 per share. One-month return of Confluent, Inc. (NASDAQ:CFLT) was -2.76%, and its shares gained 2.83% over the past 52 weeks. Confluent, Inc. (NASDAQ:CFLT) has a market capitalization of $10.987 billion.
Jackson Peak Capital stated the following regarding Confluent, Inc. (NASDAQ:CFLT) in its fourth quarter 2025 investor letter:
"Our largest contributor in Q4 was Confluent, Inc. (NASDAQ:CFLT). Our thesis that CFLT was an attractive acquisition candidate, which we published and shared with investors in August (here), was validated when reports of a potential sale surfaced in October, culminating in IBM's announced acquisition in December."
Confluent, Inc. (NASDAQ:CFLT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 71 hedge fund portfolios held Confluent, Inc. (NASDAQ:CFLT) at the end of the fourth quarter, up from 60 in the previous quarter. While we acknowledge the potential of Confluent, Inc. (NASDAQ:CFLT) 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 thebest short-term AI stock.
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