Tapasya Fund, an investment management company, released its fourth quarter 2025 investor letter. A copy of the letter can be downloaded here. The firm celebrated its third anniversary in August 2025 and is happy with the fund’s performance. In 2025, the fund performed well and achieved strong absolute returns, outpacing the S&P 500 and several other market indices. The year was marked by notable developments, especially related to tariffs, which led to substantial fluctuations in the market. There was a swift correction in April, followed by a robust rebound. The theme Artificial Intelligence (AI) has played a crucial role in supporting the market through times of volatility to reach new peaks, reaching over 38 new all-time highs this year. Against this backdrop, the fund returned 23.5% (net) in 2025 compared to a 17.9% return for the S&P 500 Index (with Dividends). The firm’s goal is to avoid any sector-specific bubble bursts, reducing the effect on the portfolio beyond general market downturns. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Tapasya Fund highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. On January 8, 2026, Alphabet Inc. (NASDAQ:GOOG) stock closed at $326.01 per share. One-month return of Alphabet Inc. (NASDAQ:GOOG) was 4.99%, and its shares gained 68.77% of their value over the last 52 weeks. Alphabet Inc. (NASDAQ:GOOG) has a market capitalization of $3.936 trillion.
Tapasya Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2025 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) was the initial investment when the fund was established. We believe the market has underestimated the significant competitive advantages, or “moats,” surrounding its core business. Concerns about the decline of its search business, early stumbles in AI launches, and the potential impact of the antitrust court decision were overblown and heavily discounted the stock price. Many of these perceived risks have since lessened, making it the top-performing “Mag 7” stock in 2025.
