Ubiquiti (UI) Rose in Q2 Despite Tarif Concerns

Kathmandu Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 17.22% gross of fees and 16.64% net of fees compared to 10.56% for the Standard & Poor’s 500 Total Return Index and 11.52% for the MSCI ACWI Total Return benchmark. The portfolio experienced a ~30% swing over the past quarter, due to heightened market volatility stemming from tariff worries. Despite these worries, the portfolio delivered positive results driven by capital flows seeking opportunities outside the U.S. and a rebound in domestic equities as tariff worries began to ease. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Kathmandu Capital highlighted stocks such as Ubiquiti Inc. (NYSE:UI). Ubiquiti Inc. (NYSE:UI) is a networking technology developer for service providers, enterprises, and consumers. The one-month return of Ubiquiti Inc. (NYSE:UI) was 12.62%, and its shares gained 172.10% of their value over the last 52 weeks. On August 12, 2025, Ubiquiti Inc. (NYSE:UI) stock closed at $475.22 per share, with a market capitalization of $28.747 billion.

Kathmandu Capital stated the following regarding Ubiquiti Inc. (NYSE:UI) in its second quarter 2025 investor letter:

"Ubiquiti Inc. (NYSE:UI): The share price has been volatile over the past quarter but has trended upward, despite ongoing concerns around tariffs. We remain confident that UI will ultimately benefit from the BEAD program, especially following the Trump administration’s announcement that the program, though delayed, will continue by adopting a more technology-agnostic approach rather than focusing exclusively on fiber. This shift could work in UI’s favor, as its equipment is better suited for fixed-wireless access deployments."

Ubiquiti Inc. (NYSE:UI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Ubiquiti Inc. (NYSE:UI) at the end of the first quarter, which was 23 in the previous quarter. While we acknowledge the potential of Ubiquiti Inc. (NYSE:UI) 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 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.