What Makes Mama's Creations (MAMA) a Compelling Investment?

Immersion Investment Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. The fund gained 28.13% in the second quarter, compared to an 8.50% increase for the Russell 2000 Index and a 15.51% increase for the Russell Microcap Index. The firm focuses on the company fundamentals, not on quarterly stock price performance. The firm invested over 80% of net asset value in the top five names. 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, Immersion Investment Partners highlighted stocks such as Mama’s Creations, Inc. (NASDAQ:MAMA). Mama’s Creations, Inc. (NASDAQ:MAMA) manufactures and markets fresh deli-prepared foods. The one-month return of Mama’s Creations, Inc. (NASDAQ:MAMA) was -11.30%, and its shares lost 0.97% of their value over the last 52 weeks. On August 18, 2025, Mama’s Creations, Inc. (NASDAQ:MAMA) stock closed at $8.16 per share, with a market capitalization of $306.903 million.

Immersion Investment Partners stated the following regarding Mama’s Creations, Inc. (NASDAQ:MAMA) in its second quarter 2025 investor letter:

"Mama’s Creations, Inc. (NASDAQ:MAMA): Occasionally you run across an executive who is so outlandishly passionate about their job and the brand they represent, you can’t help but take notice. We first met Adam Michaels (CEO of MAMA) more than a year ago at an investor conference. Clad in mulberry shoes and sport coat, the exact brand colors of MAMA, he told us how he would take what was historically a subscale meatball manufacturer in suburban New Jersey and make it into one of the largest prepared foods and deli brands in the world. Frankly, we thought he had too many screws loose. Nonetheless, we were intrigued by the business and the category. Fresh and prepared foods in grocery stores has been a growing category, catalyzed by consumer demand for healthier, fast, and affordable food options. Grocery stores have been increasingly dedicating more food space to the category. Today, it is one of only a couple of categories that are seeing volume growth.

We spent the next several months meeting with Michaels before realizing that he was the real deal. He is smart, dedicated, and the right kind of passionate. More importantly, he has spent the last two and a half years (he was appointed CEO in September 2022) building a world-class team. Michaels himself is no lightweight. He spent nearly a decade in a variety of roles at Mondelez from data analytics to leading M&A in its smaller brand venture portfolio. Since Michaels joined MAMA, he has hired Lauren Sella (former Chief Marketing Officer of Tate’s Bake Shop) as CMO, Skip Tappan (former Chief Supply Chain Officer at Gordon Food Service) as COO, and Chris Darling (former Executive Vice President Sales at Boar’s Head) as Chief Commercial Officer. CFO Anthony Gruber was appointed around the same time as Michaels, but our understanding is that Michael’s was working unofficially behind the scenes at MAMA to help with senior hires up to nine months before his official start date…” (Click here to read the full text)

Mama’s Creations, Inc. (NASDAQ:MAMA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held Mama’s Creations, Inc. (NASDAQ:MAMA) at the end of the first quarter, which was 8 in the previous quarter. Mama’s Creations, Inc.'s (NASDAQ:MAMA) fiscal Q1 2026 revenue grew approximately 18% year over year, to a record $35.3 million. While we acknowledge the potential of Mama’s Creations, Inc. (NASDAQ:MAMA) 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.