Macquarie Large Cap Growth Fund's Views on Meta Platforms (META)

Macquarie Asset Management, an investment management company, released its “Macquarie Large Cap Growth Fund” investor letter for the third quarter of 2025. A copy of the letter can be downloaded here. Equity indexes again posted record gains in the third quarter of 2025, with AI-themed stocks leading the market. AI Stocks led around 75% of the market returns in the quarter. In this environment, the fund delivered positive returns in the quarter but lagged behind the Russell 1000 Growth Index benchmark. The fund’s underperformance was driven by an unfavorable market environment and several missteps. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Macquarie Large Cap Growth Fund highlighted stocks such as Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. The one-month return of Meta Platforms, Inc. (NASDAQ:META) was -8.65%, and its shares gained 22.86% of their value over the last 52 weeks. On October 14, 2025, Meta Platforms, Inc. (NASDAQ:META) stock closed at $708.65 per share, with a market capitalization of $1.78 trillion.

Macquarie Large Cap Growth Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its third quarter 2025 investor letter:

"Contributing to relative performance were stocks in which the Fund holds an underweight position or no shares at all. Meta Platforms, Inc. (NASDAQ:META), parent company of Facebook, is a new but still underweight position in the portfolio. We recognize the company has quality characteristics – like its large user base and technology advantages – plus, not owning it presents risk management challenges relative to the benchmark given its significant benchmark weight. Nevertheless, we believe Meta still has valuation and quality hurdles to clear before becoming a full position, particularly providing more clarity on its use of capital."

Meta Platforms, Inc. (NASDAQ:META) is in the third position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 260 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the second quarter, which was 273 in the previous quarter. In the second quarter of 2025, Meta Platforms, Inc. (NASDAQ:META) reported revenue of $47.5 billion, representing a 22% increase, both in reported and constant currency. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ:META) 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 Meta Platforms, Inc. (NASDAQ:META) and shared the list of AI stocks in focus on Wall Street. In addition, please check out our hedge fund investor letters Q3 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.