Here's Why Jackson Peak Capital Added ServiceTitan (TTAN) to Its Portfolio

Jackson Peak Capital, an investment management firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned +24.0% net compared to MSCI ACWI’s 11.3% return and HFRX Equity Hedge Index’s +4.1% return. The volatility at the end of the first quarter continued in the second quarter. In April, markets declined after the Liberation Day tariff announcement, but recovered later when the administration softened its stance and scaled back the original proposals to calm markets. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Jackson Peak Capital highlighted stocks such as ServiceTitan, Inc. (NASDAQ:TTAN). ServiceTitan, Inc. (NASDAQ:TTAN) provides an end-to-end cloud-based software platform for activities required to install, maintain, and service the infrastructure and systems. The one-month return of ServiceTitan, Inc. (NASDAQ:TTAN) was -10.54%, and YTD its shares lost 3.34% of their value. On August 12, 2025, ServiceTitan, Inc. (NASDAQ:TTAN) stock closed at $99.43 per share, with a market capitalization of $9.015 billion.

Jackson Peak Capital stated the following regarding ServiceTitan, Inc. (NASDAQ:TTAN) in its second quarter 2025 investor letter:

"Our core fundamental longs remains focused on 1) AI winners and 2) European stimulus and defense. In AI, we’ve been focusing on which companies are leveraging AI to enhance core operations, with large language models becoming enterprise-ready. As noted previously, META and BABA represent this thesis. Additionally, we have been researching which software companies could end up in the privileged position of benefitting from AI instead of being cannibalized. This led us to initiating a position in ServiceTitan, Inc. (NASDAQ:TTAN), the leading cloud-based software platform for the trades (e.g., HVAC, plumbing). TTAN has strong SaaS metrics, a large market opportunity, and lower AI displacement risk. Its valuation is reasonable, with defensibility justifying a premium among public SaaS peers. We entered post the June unlock-driven selloff."

ServiceTitan, Inc. (NASDAQ:TTAN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held ServiceTitan, Inc. (NASDAQ:TTAN) at the end of the first quarter, which was 43 in the previous quarter. While we acknowledge the potential of ServiceTitan, Inc. (NASDAQ:TTAN) 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 ServiceTitan, Inc. (NASDAQ:TTAN) and shared Baron FinTech Fund's views on the company 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.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.