WW International (WW) Declined in Q3. Here's Why

Kingdom Capital Advisors, a private investment firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the portfolio recovered from the significant drawdowns from November 2024 to June 2025. The composite returned 20.78% (net of fees) in the quarter, compared to 12.39% for the Russell 2000 TR, 8.12% for the S&P 500 TR, and 9.01% for the NASDAQ 100 TR. The portfolio compounded at 21.06% (net of fees) since its inception vs. 4.60% for the Russell 2000 TR, 11.46% for the S&P 500 TR, and 13.48% for the NASDAQ 100 TR. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Kingdom Capital Advisors highlighted stocks such as WW International, Inc. (NASDAQ:WW). WW International, Inc. (NASDAQ:WW) is a weight management products and services provider. The one-month return of WW International, Inc. (NASDAQ:WW) was -11.21%, and its shares lost 22.97% of their value over the past three months. On October 13, 2025, WW International, Inc. (NASDAQ:WW) stock closed at $26.15 per share, with a market capitalization of $261.158 million.

Kingdom Capital Advisors stated the following regarding WW International, Inc. (NASDAQ:WW) in its third quarter 2025 investor letter:

"Our biggest detractor in Q3, WW International, Inc. (NASDAQ:WW) is the successor to the old Weight Watchers entity which filed for bankruptcy earlier this year. We have found post-bankruptcy entities to be historically attractive opportunities, but this one has yet to pay off. We remain intrigued by the growth of their clinical business, though the market seems concerned they will not be able to continue their prior growth after the recent FDA curtailment of GLP-1 compounding. Recent partnerships with Eli Lilly and Novo Nordisk give us some confidence, and the company’s repaired balance sheet gives them some time to navigate the rapidly evolving GLP-1 environment. The avenues for weight loss may have increased, but no other business has a better reputation for addressing behavioral changes needed to maintain a healthy lifestyle."

WW International, Inc. (NASDAQ:WW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of WW International, Inc. (NASDAQ:WW) 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 Q3 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.