Kyndryl Holdings (KD) Reversed the Earlier Gains

Greenlight Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Greenlight Capital funds returned -3.6% in the quarter, net of fees and expenses, compared to 8.1% for the S&P 500 index. The fund returned 0.4% in YTD compared to 14.8% for the index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Greenlight Capital highlighted stocks such as Kyndryl Holdings, Inc. (NYSE:KD). Kyndryl Holdings, Inc. (NYSE:KD) is a technology services company and IT infrastructure services provider. The one-month return of Kyndryl Holdings, Inc. (NYSE:KD) was -3.76%, and its shares gained 19.13% of their value over the last 52 weeks. On October 27, 2025, Kyndryl Holdings, Inc. (NYSE:KD) stock closed at $28.90 per share, with a market capitalization of $6.68 billion.

Greenlight Capital stated the following regarding Kyndryl Holdings, Inc. (NYSE:KD) in its third quarter 2025 investor letter:

"In the long book, Kyndryl Holdings, Inc. (NYSE:KD) fell 28%, which reversed gains achieved earlier in the year. There was nothing terrible about the quarterly result, but it was much less impressive than previous reports."

Kyndryl Holdings, Inc. (NYSE:KD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 36 hedge fund portfolios held Kyndryl Holdings, Inc. (NYSE:KD) at the end of the second quarter, compared to 39 in the previous quarter. While we acknowledge the potential of Kyndryl Holdings, Inc. (NYSE:KD) 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 Kyndryl Holdings, Inc. (NYSE:KD) and shared the list of RAM Smid Composite's views on the company. 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.