Oddity Tech Ltd. (ODD) Slid as the Results Fell Short of Expectations

Polen Capital, an investment management company, released its “Polen U.S. Small Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the strategy returned 21.4% gross and 21.1% net of fees, respectively, compared to a 12.2% return for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Polen U.S. Small Cap Growth Strategy highlighted stocks such as Oddity Tech Ltd. (NASDAQ:ODD). Oddity Tech Ltd. (NASDAQ:ODD) is a consumer tech company that engages in building digital-first brands for the beauty and wellness industries. The one-month return of Oddity Tech Ltd. (NASDAQ:ODD) was -7.51%, and its shares gained 1.07% of their value over the last 52 weeks. On November 19, 2025, Oddity Tech Ltd. (NASDAQ:ODD) stock closed at $37.16 per share, with a market capitalization of $2.04 billion.

Polen U.S. Small Cap Growth Strategy stated the following regarding Oddity Tech Ltd. (NASDAQ:ODD) in its third quarter 2025 investor letter:

"The most significant detractors from the Portfolio’s relative performance in the quarter were Oddity Tech Ltd. (NASDAQ:ODD), Carpenter Technology, and TransMedics Group. Oddity Tech is a digital beauty and wellness platform that uses AI and data science to develop and recommend personalized products based on unique skin type and color signatures. They have been able to scale their brands more profitably going direct to-consumer and owning that consumer relationship has helped develop brand loyalty and repeat business.

Currently the company operates under two cosmetics brands—Il Makiage and SpoiledChild—and recently announced it would be launching a third brand in the medical-grade skincare business. The stock sold off in the period as results came in shy of elevated expectations."

Oddity Tech Ltd. (NASDAQ:ODD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 36 hedge fund portfolios held Oddity Tech Ltd. (NASDAQ:ODD) at the end of the second quarter, up from 23 in the previous quarter. While we acknowledge the potential of Oddity Tech Ltd. (NASDAQ:ODD) 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 Oddity Tech Ltd. (NASDAQ:ODD) and shared the list of oversold mid-cap stocks to buy according to hedge funds. 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.