Muted Quarterly Results Impacted Grindr (GRND) in Q3

Voya Investment Management, an investment management company, released its third-quarter 2025 investor letter for its “Voya MI Dynamic Small Cap Fund.” A copy of the letter can be downloaded here. It is an actively managed US Small Cap core equity strategy. Equity markets showed a strong recovery during the quarter, bouncing back from the volatility caused by tariffs in April and finishing significantly higher than mid-year levels. Growth outperformed value in the quarter, with strong results from technology and communication services, while consumer staples lagged. Against this backdrop, the fund underperformed the index in the quarter, on a NAV basis, driven by the negative impact from stock selection. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Voya MI Dynamic Small Cap Fund highlighted stocks such as Grindr Inc. (NYSE:GRND). Grindr Inc. (NYSE:GRND) is a leading social networking and dating application for LGBTQ communities. The one-month return for Grindr Inc. (NYSE:GRND) was -11.07%, and its shares lost 12.97% over the last 52 weeks. On December 05, 2025, Grindr Inc. (NYSE:GRND) stock closed at $13.49 per share, with a market capitalization of $2.59 billion.

Voya MI Dynamic Small Cap Fund stated the following regarding Grindr Inc. (NYSE:GRND) in its third quarter 2025 investor letter:

"The primary detractors from performance were Bloom Energy Corp., AvePoint, Inc., and Grindr Inc. (NYSE:GRND) The overweight to Grindr Inc. (GRND) detracted from performance during the quarter. The overweight was driven by the ML model’s relatively positive view of the stock in combination with its volatility exposure, which helped balance risk in the portfolio. GRND declined during the quarter after reporting muted 2Q25 results that deviated from previous quarters beat and raise tradition."

Grindr Inc. (NYSE:GRND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Grindr Inc. (NYSE:GRND) at the end of the third quarter, which was 32 in the previous quarter. In Q3 2025, Grindr Inc.'s (NYSE:GRND) total revenue increased 30% year-over-year to $116 million. While we acknowledge the potential of Grindr Inc. (NYSE:GRND) 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 Grindr Inc. (NYSE:GRND) and shared the list of best falling stocks to buy according to Wall Street analysts. 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.