Will BranchOut Food (BOF) Be Able to Achieve Projected Sales of $30m in 2026?

Fairlight Capital, an investment management firm, released its Q4 2025 letter for Fairlight Alpha Fund. A copy of the letter can be downloaded here. 2025 was an exceptional year across multiple markets. In Q4 2025, Fairlight Alpha Fund returned 9.9% net of fees, compared to 2.7% for the S&P 500 Total Return Index. The Fund has delivered a return of 904.9% net of fees, since inception, and 40.1% on an annualized basis. The Fund outperformed the index in 2025. A combination of factors drove the outperformance of the Fund, including considerable gains in its junior gold and silver miner positions, effective execution of its investment thesis across several sectors, and an opportunistic short position. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Fairlight Alpha Fund highlighted BranchOut Food Inc. (NASDAQ:BOF) as a notable contributor. BranchOut Food Inc. (NASDAQ:BOF) is a packaged foods company that provides dehydrated fruit and vegetable-based snacks and industrial ingredients. On February 9, 2026, BranchOut Food Inc. (NASDAQ:BOF) stock closed at $2.94 per share. One-month return of BranchOut Food Inc. (NASDAQ:BOF) was -5.77%, and its shares are up 15.01% over the past twelve months. BranchOut Food Inc. (NASDAQ:BOF) has a market capitalization of $39.427 million.

Fairlight Alpha Fund stated the following regarding BranchOut Food Inc. (NASDAQ:BOF) in its fourth quarter 2025 investor letter:

"Finally, BranchOut Food Inc. (NASDAQ:BOF) is a very interesting situation. This company, founded by Eric Healy4, a former mechanical engineer at Boeing, is a producer of dried foods using a novel technique called GentleDryTM. This process combines a partial vacuum with gentle microwave heating to dry out and create a variety of foods such as salted bell pepper chips, crunchy strawberry halves and crunchy pineapple chips. As opposed to freeze drying, the chips retain more color, flavor and nutrients (95% of the original is preserved) and the process is lower cost.

The company is based in Oregon, but its manufacturing base is in Peru near the farms that create this produce, so shipping and production costs are reduced and food is fresh. They buy “ugly” produce that reduces costs, increases farm income, reduces waste, and has no impact on the final dried product. They have three business segments: branded retail, private label (for the largest retailer in the US and the largest warehouse club5), and ingredients. Each of these areas has been expanding rapidly. With production only starting late 2024, the company has roughly doubled sales each year since 2022. In 2024 sales were $6.5 million, estimated sales for 2025 should be in the region of $14 million, and the potential is for $30 million in 2026…” (Click here to read the full text)

BranchOut Food Inc. (NASDAQ:BOF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of BranchOut Food Inc. (NASDAQ:BOF) 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 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.