Laughing Water Capital's Update on Cantaloup (CTLP)

LLaughing Water Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, Class A interests in Laughing Water Capital returned approximately 13.1% net of all expenses. The SP500TR and R2000 returned 10.9% and 8.5%, respectively. 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, Laughing Water Capital highlighted stocks such as Cantaloupe, Inc. (NASDAQ:CTLP). Cantaloupe, Inc. (NASDAQ:CTLP) is a digital payments and software services company. The one-month return of Cantaloupe, Inc. (NASDAQ:CTLP) was 0.73%, and its shares gained 45.28% of their value over the last 52 weeks. On July 23, 2025, Cantaloupe, Inc. (NASDAQ:CTLP) stock closed at $11.07 per share, with a market capitalization of $810.812 million.

Laughing Water Capital stated the following regarding Cantaloupe, Inc. (NASDAQ:CTLP) in its second quarter 2025 investor letter:

"Cantaloupe, Inc. (NASDAQ:CTLP) – Cantaloupe, our vending machine software and payments company that was quickly evolving into all things unattended retail, was snatched away from us during the quarter by a private equity buyer. While we earned a solid return on our investment, I am disappointed in the price Cantaloup accepted. However, I am not totally surprised as the company’s largest shareholder – who also had a representative installed as Cantaloup’s chairman – is reportedly in wind-down mode, and thus seeking liquidity. The fact that the proxy reveals that this chairman will be rolling his equity, effectively maintaining his investment while smaller shareholders like us are shown the door, of course leaves a sour taste."

Cantaloupe, Inc. (NASDAQ:CTLP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Cantaloupe, Inc. (NASDAQ:CTLP) at the end of the first quarter, which was 19 in the previous quarter. Cantaloupe, Inc.'s (NASDAQ:CTLP) first quarter revenue increased 11% year-over-year to $75.4 million. While we acknowledge the potential of Cantaloupe, Inc. (NASDAQ:CTLP) 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 Cantaloupe, Inc. (NASDAQ:CTLP) and shared billionaire David Abrams’ 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.