Should You Be Optimistic on PAR Technology (PAR)?

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 PAR Technology Corporation (NYSE:PAR). PAR Technology Corporation (NYSE:PAR) is a technology company that offers cloud-based hardware and software solutions to the restaurant and retail industries. The one-month return of PAR Technology Corporation (NYSE:PAR) was 4.56%, and its shares lost 44.68% of their value over the last 52 weeks. On January 9, 2026, PAR Technology Corporation (NYSE:PAR) stock closed at $37.36 per share, with a market capitalization of $1.51 billion.

Bristlemoon Global Fund stated the following regarding PAR Technology Corporation (NYSE:PAR) in its fourth quarter 2025 investor letter:

"Unfortunately, the strong contribution to the Fund from the abovementioned stocks has been offset by very weak performance in two of the Fund’s largest positions: Hemnet Group and PAR Technology Corporation (NYSE:PAR). Both positions have more than halved in value peak to trough – a disappointing outcome.

We disagree with the bearish narratives that have pushed these stocks lower and have taken the opportunity to add to the Fund’s holdings in these great businesses. Despite the weak share price performance, we are optimistic on the potential of these two stocks to deliver attractive returns over the next few years.

We have also written extensively about PAR, and we believe that the future for the business continues to brighten. Despite this, the stock’s performance during the quarter was weak, falling by -8%. PAR remains a quality business, but it is temporarily out of favour. It currently sits in a blind spot for many investors: it is a small cap, unprofitable software company working through the overhang of a prior guidance reset (a topic we addressed in our September 2025 quarterly letter as being non-structural)…” (Click here to read the full text)

PAR Technology Corporation (NYSE:PAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 24 hedge fund portfolios held PAR Technology Corporation (NYSE:PAR) at the end of the third quarter, compared to 28 in the previous quarter. PAR Technology Corporation’s (NYSE:PAR) third quarter revenue increased nearly 23% to $119 million.  While we acknowledge the potential of PAR Technology Corporation (NYSE:PAR) 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 PAR Technology Corporation (NYSE:PAR) and shared TimesSquare Capital U.S. Small Cap Growth Strategy's views on the company in the previous quarter. 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.