Here are Rowan Street Capital's Updates on The Trade Desk (TTD)

Rowan Street Capital, an investment management company, has recently released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund remained unchanged in the third quarter (+0.22%), making the YTD returns through September 30, 2025, to +20.4% net of fees compared to the S&P 500’s +14.8% year-to-date gain. Over the past three years, the firm’s capital compounded at approximately +54.2% annually (net), delivering a +266% cumulative return — more than doubling the S&P 500’s +24.9% annualized gain over the same period. The fund’s performance was driven by its commitment to process refined through years of experience, mistakes, and reflection. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Rowan Street Capital highlighted stocks such as The Trade Desk, Inc. (NASDAQ:TTD). Headquartered in Ventura, California, The Trade Desk, Inc. (NASDAQ:TTD) is a technology company that offers a self-service cloud-based ad-buying platform. The one-month return of The Trade Desk, Inc. (NASDAQ:TTD) was 14.98%, and its shares lost 54.01% of their value over the last 52 weeks. On October 22, 2025, The Trade Desk, Inc. (NASDAQ:TTD) stock closed at $53.89 per share, with a market capitalization of $26.349 billion.

Rowan Street Capital stated the following regarding The Trade Desk, Inc. (NASDAQ:TTD) in its third quarter 2025 investor letter:

"The Trade Desk, Inc. (NASDAQ:TTD), which we first purchased in March 2020 during the depths COVID panic, has compounded at roughly 20% annually. In 2025 though it has been our weakest performer, declining more than 50% as the market questioned whether recent growth slowdown is cyclical or more structural in nature. While we continue admire the business, recent management communication has raised concerns. CEO Jeff Green’s handling of the past two earnings calls — marked by vague explanation and a lack of accountability — gave us pause. Exceptional leaders reveal their character in adversity, and this has been his first true test. The position has naturally declined to about 4.5% of the portfolio, and we’re content to let performance dictate future weight. If execution improves, it will naturally grow into a larger holding; if our low cost basis protects us."

The Trade Desk, Inc. (NASDAQ:TTD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held The Trade Desk, Inc. (NASDAQ:TTD) at the end of the second quarter, which was 61 in the previous quarter. While we acknowledge the potential of The Trade Desk, Inc. (NASDAQ:TTD) 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 The Trade Desk, Inc. (NASDAQ:TTD) and shared the list of overlooked AI stocks to buy. 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.