Right Tail Capital Sold IAC Communications (IAC) Due to Concerns Over Business Viability

Right Tail Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Right Tail aims to generate high after-tax returns by investing in high-quality public companies for the long term. The letter discussed the three-year journey of Right Tail Capital since its inception. The firm has grown from approximately $3 million in AUM initially to about $27 million today. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Right Tail Capital highlighted stocks such as IAC Inc. (NASDAQ:IAC). IAC Inc. (NASDAQ:IAC) is a media and internet company. The one-month return of IAC Inc. (NASDAQ:IAC) was 9.27%, and its shares lost 0.76% of their value over the last 52 weeks. On July 9, 2025, IAC Inc. (NASDAQ:IAC) stock closed at $39.94 per share, with a market capitalization of $3.189 billion.

Right Tail Capital stated the following regarding IAC Inc. (NASDAQ:IAC) in its second quarter 2025 investor letter:

"IAC Inc. (NASDAQ:IAC) (IAC; exited late 2023). This was an investment I originally made before Right Tail. Initially impressed by Barry Diller’s capital allocation history, I later questioned the quality and competitive positioning of the underlying businesses, especially in tougher environments."

IAC Inc. (NASDAQ:IAC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held IAC Inc. (NASDAQ:IAC) at the end of the first quarter, compared to 54 in the previous quarter. While we acknowledge the potential of IAC 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 IAC Inc. (NASDAQ:IAC) and shared billionaire Glenn Russell Dubin’s stock picks with huge upside potential. In addition, please check out our hedge fund investor letters Q2 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.