Should You Invest in Clear Secure (YOU)?

Patient Capital Management, a value investing firm, released its “Patient Capital Opportunity Equity Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated a total return of 15.3% net of fees in the quarter compared to the strategy’s unmanaged benchmark, the S&P 500 Index’s 10.9% return. According to a three-factor performance attribution model, the selection effect contributed positively to the portfolio’s performance, which was partially offset by allocation and interaction effects. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as Clear Secure, Inc. (NYSE:YOU). Clear Secure, Inc. (NYSE:YOU) is an identity company that develops biometric identity verification technology platforms. The one-month return of Clear Secure, Inc. (NYSE:YOU) was 23.99%, and its shares gained 56.40% of their value over the last 52 weeks. On July 17, 2025, Clear Secure, Inc. (NYSE:YOU) stock closed at $31.17 per share with a market capitalization of $4.147 billion.

Patient Capital Opportunity Equity Strategy stated the following regarding Clear Secure, Inc. (NYSE:YOU) in its second quarter 2025 investor letter:

"We entered Clear Secure, Inc. (NYSE:YOU), a leading secure identity verification provider. The company is best known for helping customers bypass TSA lines at airports but they also provide similar security services at professional sports events and concerts. Their line-skipping business delivers impressive profitability with double-digit free cash flow yields and high margins. Longer-term the opportunity lies in expanding their identity verification technology into Healthcare and Financial Services. We haven’t found another company that has a 10% free cash flow yield, no debt on the balance sheet, record earnings, improving margins, excellent management, buying back stocks and is outperforming the market YTD and over 1 year."

Clear Secure, Inc. (NYSE:YOU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Clear Secure, Inc. (NYSE:YOU) at the end of the first quarter, which was 27 in the previous quarter. While we acknowledge the potential of YOU 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 Clear Secure, Inc. (NYSE:YOU) and shared the list of underperforming stocks targeted by short sellers. 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.