Optimist Fund Trimmed Its Position in Fiverr International Ltd. (FVRR). Here's Why

Optimist Fund, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned +9.1% in the third quarter compared to 7.9% for the benchmark. The firm focuses on acceleration in several cyclical holdings in the portfolio that have been in multi-year downswings, while the world holds attention on the latest developments in AI. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Optimist Fund highlighted stocks such as Fiverr International Ltd. (NYSE:FVRR). Headquartered in Tel Aviv, Israel, Fiverr International Ltd. (NYSE:FVRR) is an online marketplace. The one-month return of Fiverr International Ltd. (NYSE:FVRR) was -5.50%, and its shares lost 26.53% of their value over the last 52 weeks. On October 30, 2025, Fiverr International Ltd. (NYSE:FVRR) stock closed at $22.18 per share, with a market capitalization of $819.172 million.

Optimist Fund stated the following regarding Fiverr International Ltd. (NYSE:FVRR) in its third quarter 2025 investor letter:

"Fiverr International Ltd. (NYSE:FVRR) – Fiverr’s results were fine but fell short of our expectations, leading us to trim the position to a 4% weight. Earlier this year, we doubled our position after the company launched a new AI product that we believed could meaningfully accelerate revenue growth in the near term.

Following Q2 reporting, our confidence in that acceleration materializing has moderated, prompting a reduction in position size.

We continue to view Fiverr’s risk/reward profile as attractive, but this adjustment reflects our dynamic approach to position sizing — increasing exposure when conviction rises and reducing it when near-term visibility becomes less clear."

Fiverr International Ltd. (NYSE:FVRR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 18 hedge fund portfolios held Fiverr International Ltd. (NYSE:FVRR) at the end of the second quarter, compared to 17 in the previous quarter.  While we acknowledge the potential of Fiverr International Ltd. (NYSE:FVRR) 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.

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Disclosure: None. This article is originally published at Insider Monkey.