Insiders Fund's Investment Thesis for AppFolio (APPF)

Alpha Wealth Funds, LLC, an investment management company, released its Q3 2025 letter for the “Insiders Fund”. A copy of the letter can be downloaded here. The fund returned 4.96% in September, bringing the YTD returns to 21.37%. This compares to the benchmark, S&P 500 September return of 3.65% and the year-to-date return through September 30, 2025, of 14.83%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alpha Wealth Insiders Fund highlighted stocks such as AppFolio, Inc. (NASDAQ:APPF). AppFolio, Inc. (NASDAQ:APPF) offers cloud business management solutions for the real estate industry. The one-month return of AppFolio, Inc. (NASDAQ:APPF) was 0.95%, and its shares lost 8.24% of their value over the last 52 weeks. On January 2, 2026, Applied Materials, Inc. (NASDAQ: AMAT) stock closed at $230.37 per share, with a market capitalization of $8.275 billion.

Alpha Wealth Insiders Fund stated the following regarding AppFolio, Inc. (NASDAQ:APPF) in its third quarter 2025 investor letter:

"Business: AppFolio, Inc. (NASDAQ:APPF) is a leading provider of cloud-based business management solutions tailored primarily for the real estate sector. Their platform offers property managers a comprehensive suite of tools, including tenant screening, electronic payment processing, and management services. It primarily caters to multi tenant residential properties. It is the category leader with near 20% market share.

Insider Buying/Selling: On June 5, 2025, Timothy K. Bliss (a Director) purchased 22,000 shares at about $217.18 per share (total ~ $4.78 million).

Also on June 6, 2025, Robert Donald Casey III (Director) bought 4,000 shares at around $217.73 per share (≈ $870,920) A spike in a lot of insider selling and settling.…” (Click here to read the full text)

AppFolio, Inc. (NASDAQ:APPF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 40 hedge fund portfolios held AppFolio, Inc. (NASDAQ:APPF) at the end of the third quarter, up from 36 in the previous quarter. While we acknowledge the potential of AppFolio, Inc. (NASDAQ:APPF) 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 AppFolio, Inc. (NASDAQ:APPF) and shared the list of best stocks you’ll wish you bought sooner. 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.