Continued Challenges in Grab Holding's (GRAB) Newer Fintech Segment Weighed on its Performance

Sustainable Growth Advisers (SGA), an investment management company, released its fourth-quarter investor letter for its “Emerging Markets Growth Strategy.” A copy of the letter can be downloaded here. The fourth quarter of 2025 marked strong divergence from the market. Market leadership by AI beneficiaries and revival of cyclical sectors dominated the market, while quality growth strategies faced challenges. In Q4 2025, the portfolio returned 0.8% (Gross) and 0.6% (Net) compared to the MSCI EM Net TR Index return of 4.7% and the MSCI EM Growth Net TR Index return of 3.3%. In 2025, the portfolio delivered strong returns of 23.8% (Gross) and 22.8% (Net) but lagged the 33.6% and 34.3% returns for the indexes, respectively. The portfolio projects 13% revenue growth and 16% earnings growth annually for the next three years. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, SGA Emerging Markets Growth Strategy highlighted Grab Holdings Limited (NASDAQ:GRAB) as a notable detractor from performance. Grab Holdings Limited (NASDAQ:GRAB) is a Singapore-based technology company operating superapps through deliveries, mobility, financial services, and other segments. On February 11, 2026, Grab Holdings Limited (NASDAQ:GRAB) stock closed at $4.23 per share. One-month return of Grab Holdings Limited (NASDAQ:GRAB) was -3.64%, and its shares are down 14.72% over the past twelve months. Grab Holdings Limited (NASDAQ:GRAB) has a market capitalization of $17.288 billion.

SGA Emerging Markets Growth Strategy stated the following regarding Grab Holdings Limited (NASDAQ:GRAB) in its fourth quarter 2025 investor letter:

"Grab Holdings Limited (NASDAQ:GRAB) was a detractor during the quarter despite delivering solid Q3 results and raising full-year revenue guidance. The results were balanced across user and transaction growth, revenues, and margins, with growth in gross merchandise value and monthly transacting users accelerating from last quarter. At the segment level growth was solid in mobility and deliveries, but challenges in its newer fintech segment persisted as operating losses increased due to higher provisions. Management guided for the fintech segment to breakeven by the second half of 2026, and although we remain uncertain about the timeline, rumors of a potential merger with competitor GoTo would expand the size of Grab’s user base and fintech opportunity. We believe Grab’s delivery and ridesharing businesses remain well positioned for predictable growth and margin expansion opportunities supported by the company’s strong brand, diversified platform, and scale advantages. We expect Grab to deliver high-teens revenue growth over the next three years as the company continues to improve efficiency and expand monetization opportunities. We added to the position during the quarter, maintaining an average weight."

Grab Holdings Limited (NASDAQ:GRAB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 59 hedge fund portfolios held Grab Holdings Limited (NASDAQ:GRAB) at the end of the third quarter, compared to 60 in the previous quarter. While we acknowledge the potential of Grab Holdings Limited (NASDAQ:GRAB) 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 Grab Holdings Limited (NASDAQ:GRAB) and shared a list of stocks with huge growth potential according to the media. 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.