Do You Believe in TSS's (TSSI) Growth Potential?

Kingdom Capital Advisors, a private investment firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm started the business four years ago with a clear goal of investing in overlooked microcap companies that yield exceptional returns. Despite significant challenges in 2025, including a bankruptcy in January, a key investment losing customers in May, and a cyberattack on the largest holding in June, the firm achieved a 17.45% return net of fees, illustrating the resilience of a focused, research-intensive strategy. The composite returned 8.88% (net of fees) in the fourth quarter, compared to 2.19% for the Russell 2000 TR, 2.68% for the S&P 500 TR, and 2.47% for the NASDAQ 100 TR. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Kingdom Capital Advisors highlighted stocks such as TSS, Inc. (NASDAQ:TSSI). TSS, Inc. (NASDAQ:TSSI) is a US-based integration technology company that engages in the design, maintenance, and take-back of end-user and enterprise systems. On January 8, 2026, TSS, Inc. (NASDAQ:TSSI) stock closed at $8.58 per share. One-month return of TSS, Inc. (NASDAQ:TSSI) was 13.62%, and its shares lost 22.83% of their value over the last 52 weeks. TSS, Inc. (NASDAQ:TSSI) has a market capitalization of $248.425 million.

Kingdom Capital Advisors stated the following regarding TSS, Inc. (NASDAQ:TSSI) in its fourth quarter 2025 investor letter:

"Our largest Q4 detractors were United Natural Foods (UNFI) and TSS, Inc. (NASDAQ:TSSI). TSSI stumbled through their November earnings report, vastly underperforming expectations of a significant revenue ramp at their new Texas location. Despite the stock selling off over 50%, the only real issue appears to be a few months’ delay in ramping their operations to Dell’s standards. The company confirmed that volumes have subsequently hit record highs, and we are hopeful for an obvious rebound trade in 2026."

TSS, Inc. (NASDAQ:TSSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 7 hedge fund portfolios held TSS, Inc. (NASDAQ:TSSI) at the end of the third quarter, compared to 9 in the previous quarter. While we acknowledge the potential of TSS, Inc. (NASDAQ:TSSI) 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 TSS, Inc. (NASDAQ:TSSI) and shared the list of best performing small cap tech stocks in the past 3 years. In addition, please check out our hedge fund investor letters Q4 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.