Optimist Fund's Views on Its Exited Position Fiverr International Ltd. (FVRR)

Optimist Fund, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund’s objective is to achieve capital growth at a rate in the mid-teens or higher over the course of several decades. In Q4 2025, the Fund declined 8.5%. The Fund, although not yet five years old, invests with a five-year perspective. While short-term drawdowns can be tough, the Fund is optimistic about the portfolio's fundamental performance and confident in prospective returns over the next five years. The Fund believes that current valuations significantly underestimate the earnings and cash flow the core holdings will produce in five years. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Optimist Fund highlighted stocks like Fiverr International Ltd. (NYSE:FVRR). Headquartered in Tel Aviv, Israel, Fiverr International Ltd. (NYSE:FVRR) is an online marketplace for freelance services. On February 27, 2026, Fiverr International Ltd. (NYSE:FVRR) stock closed at $10.83 per share. One-month return of Fiverr International Ltd. (NYSE:FVRR) was -35.92%, and its shares lost 56.84% over the past 52 weeks. Fiverr International Ltd. (NYSE:FVRR) has a market capitalization of $399.983 million.

Optimist Fund stated the following regarding Fiverr International Ltd. (NYSE:FVRR) in its fourth quarter 2025 investor letter:

"During the quarter, we exited our position in Fiverr International Ltd. (NYSE:FVRR), which had previously been among our top ten holdings.

Our investment in Fiverr was based on the belief that the company could reaccelerate organic revenue growth back into the mid-teens, which we believed would drive a meaningful re-rating of the shares. Under that scenario, our five-year valuation target was well over $100 per share, compared to a share price of roughly $20 as of December 31st.

In Q4, we made the decision that we would rather own Fiverr at a higher price with greater conviction that their growth will reaccelerate than own it today at a lower price with less conviction. Put differently, we would be comfortable purchasing the shares at $30 if we had stronger evidence that revenue growth is sustainably accelerating and that our longer-term ~$100+ valuation target is increasingly likely to be realized. This decision reflects our discipline around conviction and opportunity cost. While we do not own Fiverr today, it remains on our watchlist, and we would not hesitate to re establish a position should the potential accelerating operating trends, begin to materialize..." (Click here to read the full text)

Fiverr International Ltd. (NYSE:FVRR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 23 hedge fund portfolios held Fiverr International Ltd. (NYSE:FVRR) at the end of the fourth quarter, up from 20 in the previous quarter. While we acknowledge the potential of Fiverr International Ltd. (NYSE:FVRR) 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 Fiverr International Ltd. (NYSE:FVRR) and shared a list of stocks on Jim Cramer’s Radar. 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.