Pelican Bay Capital's Third Quarter Performance

Third Quarter Report for Investors

Pelican Bay Capital Management has published its third quarter investor letter for 2025. The PBCM Concentrated Value Strategy provided a return of 7.8% this quarter, while the Russell 1000 Value Index achieved a return of 5.3%. Year-to-date, the fund's return stands at 11.2%, while the index remains at 11.6%. It is worth checking the fund's five largest investments for the best stock selections of 2025.

This quarter, attention was drawn to stocks such as Alphabet Inc. (NASDAQ:GOOG). As the parent company of Google, Alphabet Inc. (NASDAQ:GOOG) offers various platforms and services through its Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOG) was 20.15%, and it increased its stock value by 58.65% over the last 52 weeks. On November 6, 2025, Alphabet Inc. (NASDAQ:GOOG) shares closed at $285.34 per share, reaching a market value of $3.439 trillion.

The PBCM Concentrated Value Strategy mentioned the following about Alphabet Inc. (NASDAQ:GOOG) in its third quarter investor letter:

"Alphabet Inc. (NASDAQ:GOOG) gained 41% this quarter due to increased demand for AI services. GOOG’s Gemini AI application recently surpassed OpenAI's ChatGPT application in the Apple app store, and the company’s Tensor Processing Chips have become an important alternative to Nvidia’s GPUs in data centers dedicated to AI use. I must note that the stock price of GOOG has reached the upper limit of our intrinsic value range in our forecast, and we have largely reduced our position."

Alphabet Inc. (NASDAQ:GOOG) ranks 7th on our list of the 30 Most Popular Stocks. According to our database, at the end of the second quarter, 178 hedge fund portfolios held shares of Alphabet Inc. (NASDAQ:GOOG); this number was 164 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ:GOOG) generated $100 billion in revenue for the first time. Although Alphabet Inc. (NASDAQ:GOOG) has investment potential, we believe that some AI stocks present higher upside potential and carry less risk. If you are looking for an extremely undervalued AI stock that has significant potential to benefit from the tariffs of the Trump era and local production trends, you can check out our free report on the best short-term AI stocks.