Hayden Capital: "Gitlab (GTLB) is Playing Out in Real-Time"

Hayden Capital, an investment management firm, released its fourth-quarter 2025 investment letter. A copy of the letter can be downloaded here. 2025 proved how unpredictable markets can be in the short term. Markets displayed broad strength, highlighting their resilience. U.S. equities saw double-digit gains, while international markets performed even better. Remarkably, international stocks outpaced their U.S. counterparts for the first time since 2017. The firm had a productive 2025, especially as investor capital focused on anything related to AI, while other sectors were labeled as “AI losers.” In Q4 2025, the portfolio returned -12.9% compared to the S&P 500's +2.7% and MSCI World's +3.3%. The portfolio had returned +14.8% annualized after fees, since inception, compared to the S&P 500’s +13.5% and MSCI World’s +10.3% return. Approximately 42% of the portfolio is invested in Asia, ~41% in North America, ~16% in Latin America, and the rest in cash. Due to the influence of AI, the market is responding more to fear and rising uncertainty about the future rather than to facts. In addition, please check the firm’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Hayden Capital highlighted GitLab Inc. (NASDAQ:GTLB). GitLab Inc. (NASDAQ:GTLB) develops software for the software development lifecycle that offers GitLab that covers DevSecOps lifecycle stages. On February 26, 2026, GitLab Inc. (NASDAQ:GTLB) stock closed at $27.89 per share. One-month return of GitLab Inc. (NASDAQ:GTLB) was -20.27%, and its shares lost 53.68% over the past 52 weeks. GitLab Inc. (NASDAQ:GTLB) has a market capitalization of $4.697 billion.

Hayden Capital stated the following regarding GitLab Inc. (NASDAQ:GTLB) in its fourth quarter 2025 investor letter:

"GitLab Inc. (NASDAQ:GTLB) is a good example of this transition playing out in real-time. Usage is up +35 - 45% y/y, as more AI-generated code means higher volumes, which means more need for testing and continuous integration to ensure the code is safe & secure. But revenues are only up +25% y/y – highlighting a growing divide between the value they create, and the way they monetize it."

GitLab Inc. (NASDAQ:GTLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 59 hedge fund portfolios held GitLab Inc. (NASDAQ:GTLB) at the end of the fourth quarter, up from 51 in the previous quarter. While we acknowledge the potential of GitLab Inc. (NASDAQ:GTLB) 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 GitLab Inc. (NASDAQ:GTLB) and shared a list of best IPO stocks to buy. 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.