Ashva Capital Management: "We See Robinhood Markets (HOOD) as a Trojan Horse in Retail Finance"

Ashva Capital Management, an investment management company, released its Q2 2025 investor letter. A copy of the letter can be downloaded here. Year-to-date (through June 30, 2025), the fund returned -1.55% compared to the S&P 500’s 5.5% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Ashva Capital Management highlighted stocks such as Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood Markets, Inc. (NASDAQ:HOOD) is a financial services platform that allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The one-month return of Robinhood Markets, Inc. (NASDAQ:HOOD) was 35.95%, and its shares gained 343.00% of their value over the last 52 weeks. On July 10, 2025, Robinhood Markets, Inc. (NASDAQ:HOOD) stock closed at $98.70 per share, with a market capitalization of $90.928 billion.

Ashva Capital Management stated the following regarding Robinhood Markets, Inc. (NASDAQ:HOOD) in its second quarter 2025 investor letter:

"Robinhood Markets, Inc. (NASDAQ:HOOD) is not just a brokerage app—it’s a disruptive financial platform rewriting the rules of consumer finance. With its $0 trading model, Robinhood forced incumbents to adapt, but now it’s doing the same to banking. The newly launched Robinhood Gold credit card offers 3% cash back—confounding traditional banks. Why? Because Robinhood doesn’t have the legacy cost structure of old-world financial institutions. This card is more than just a product; it’s one of the most brilliant customer acquisition tools we’ve seen in fintech. We see Robinhood as a Trojan horse in retail finance—nimble, bold, and rapidly expanding its ecosystem."

Robinhood Markets, Inc. (NASDAQ:HOOD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held Robinhood Markets, Inc. (NASDAQ:HOOD) at the end of the first quarter, which was 79 in the previous quarter. While we acknowledge the potential of HOOD 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 Robinhood Markets, Inc. (NASDAQ:HOOD) and shared the list of best fintech stocks to buy. Parnassus Mid Cap Growth Fund added Robinhood Markets, Inc. (NASDAQ:HOOD) to its portfolio in the previous quarter. 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.