SoFi Technologies (SOFI) Benefitted from a Strategic Shift

Polen Capital, an investment management company, released its “Polen U.S. SMID Cap Growth Strategy” third-quarter 2025 investor letter.  A copy of the letter can be downloaded here. The strategy returned 14.8% gross and 14.4% net of fees in the quarter, compared to the Russell 2500 Growth Index return of 10.7%. 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, Madison Small Cap Fund highlighted stocks such as SoFi Technologies, Inc. (NASDAQ:SOFI). SoFi Technologies, Inc. (NASDAQ:SOFI) offers financial services that operate through Lending, Technology Platform, and Financial Services segments. The one-month return of SoFi Technologies, Inc. (NASDAQ:SOFI) was -16.03%, and its shares gained 60.45% of their value over the last 52 weeks. On November 21, 2025, SoFi Technologies, Inc. (NASDAQ:SOFI) stock closed at $25.19 per share, with a market capitalization of $30.377 billion.

Madison Small Cap Fund stated the following regarding SoFi Technologies, Inc. (NASDAQ:SOFI) in its third quarter 2025 investor letter:

"The top contributors to the Portfolio’s relative performance in the quarter were Bloom Energy, SoFi Technologies, Inc. (NASDAQ:SOFI), and Talen Energy.

SoFi Technologies started its life in 2011 as a student loan refinancer and has rapidly evolved into a full-service digital banking platform. The company has been successful using a “land and expand” approach that both drives new customer acquisition and more dynamic relationships with those customers. This has translated into strong membership growth and in turn strong revenue growth, which has not gone unnoticed by the market this year."

SoFi Technologies, Inc. (NASDAQ:SOFI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held SoFi Technologies, Inc. (NASDAQ:SOFI) at the end of the second quarter, up from 44 in the previous quarter.  SoFi Technologies, Inc. (NASDAQ:SOFI) reported a record adjusted net revenue of $950 million in Q3 2025, up 38% year-over-year. While we acknowledge the potential of SoFi Technologies, Inc. (NASDAQ:SOFI) 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 SoFi Technologies, Inc. (NASDAQ:SOFI) and shared the list of best crypto-related stocks to invest in. 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.