Jackson Peak Capital’s Updates on Confluent (CFLT)

CFLT -1.71%

Jackson Peak Capital, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Q3 saw equities, especially speculative sectors, trending upward, driven by momentum rather than fundamentals or macro factors. Jackson Peak underperformed due to this dynamic and its unique positioning.  In the quarter, the fund returned -2.9%, net, compared to MSCI ACWI’s +7.5% return and HFRX Equity Hedge Index’s +3.8% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Jackson Peak Capital highlighted stocks such as Confluent, Inc. (NASDAQ:CFLT). Headquartered in Mountain View, California, Confluent, Inc. (NASDAQ:CFLT) offers a data streaming platform. The one-month return of Confluent, Inc. (NASDAQ:CFLT) was -3.53%, and its shares lost 30.64% of their value over the last 52 weeks. On December 01, 2025, Confluent, Inc. (NASDAQ:CFLT) stock closed at $21.87 per share, with a market capitalization of $7.651 billion.

Jackson Peak Capital stated the following regarding Confluent, Inc. (NASDAQ:CFLT) in its third quarter 2025 investor letter:

"As mentioned above, we have allocated a lot of exposure to a few high conviction event-driven ideas. One of these is Confluent, Inc. (NASDAQ:CFLT) – our largest position at the end of Q3. Confluent is a data infrastructure software firm. It offers a data streaming platform that helps companies stream, connect, process and govern their data. These capabilities are increasingly valuable and strategic in the age of AI. We built a position in August after the stock fell ~35% post-earnings. We shared our detailed event-driven thesis with our investors and distribution list in August (see link here for the presentation). We outlined our view that it was an asymmetric opportunity: an acquisition target with takeout indicators flashing and statistically cheap.

Confluent, Inc. (NASDAQ:CFLT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Confluent, Inc. (NASDAQ:CFLT) at the end of the third quarter, which was 50 in the previous quarter. While we acknowledge the potential of Confluent, Inc. (NASDAQ:CFLT) 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 Confluent, Inc. (NASDAQ:CFLT) and shared the list of fastest-growing AI stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.