Alphabet (GOOGL) Delivered Solid Performance in the Quarter

Bristlemoon Capital, a global equities firm, released its “Bristlemoon Global Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -6.2% in the December quarter and a 0.3% return in December. Since its inception, the fund has produced a cumulative return of 11.9%, net of fees.  In 2025, market trends intensified, with perceived AI winners rallying, while stocks considered "cheap" dropped even further if labeled as AI losers. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Bristlemoon Global Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOGL) was 6.60%, and its shares gained 72.02% over the last 52 weeks. On January 9, 2026, Alphabet Inc. (NASDAQ:GOOGL) stock closed at $328.57 per share, with a market capitalization of $3.98 trillion.

Bristlemoon Global Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its fourth quarter 2025 investor letter:

"In our September 2025 quarterly letter we explained why we had taken positions in Alphabet Inc. (NASDAQ:GOOGL) and ASML. We highlighted how ASML is a monopoly in the semiconductor industry during an AI boom. Our writeup outlined the bear case arguments and explained our reasoning for why they were misguided. Other investors began to agree with our investment thesis, sending the stock from around €600 per share to north of €900 per share in the span of a quarter. Alphabet, where investor sentiment around AI had become unduly pessimistic, has also since delivered solid performance and contributed meaningfully to the Fund’s returns."

Alphabet Inc. (NASDAQ:GOOGL) is in fourth position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 243 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the third quarter, up from 219 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ: GOOGL) achieved its first-ever $100 billion in revenue. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) 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 Alphabet Inc. (NASDAQ:GOOGL) and shared the list of best software infrastructure stocks to buy according to hedge funds. 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.