Rowan Street Capital's Q3 2025 Report

Rowan Street Capital Announces Third Quarter Performance

Rowan Street Capital, as an investment management company, has published its third quarter investor letter for 2025. The fund showed no change during the third quarter, with a net return of 20.4% as of September 30, 2025, significantly outperforming the S&P 500's year-to-date gain of 14.8%.

Over the past three years, the company’s capital has exhibited an approximate annual compound growth rate of 54.2%, yielding a total return of 266%. This performance is over twice that of the S&P 500’s annual gain of 24.9% during the same period. The fund's success stems from a commitment to the refined process that has been honed through years of experience, mistakes, and reflection.

Tesla, Inc. (NASDAQ:TSLA) emerged as one of the highlighted stocks in the investor letter. Tesla, Inc. (NASDAQ:TSLA) is a company that designs, develops, manufactures, leases, and sells electric vehicles as well as energy production and storage systems. The stock has returned 1.82% in the last month, while it has observed a 65.51% increase in its value over the past 52 weeks. As of October 22, 2025, Tesla, Inc. (NASDAQ:TSLA) shares traded at $438.97 per share, reaching a market capitalization of $1.46 trillion.

Rowan Street Capital stated the following about Tesla, Inc. (NASDAQ:TSLA) in its third quarter investor letter: “Tesla, Inc. (NASDAQ:TSLA) is one of our new investment ideas. This position, which we initiated at the beginning of the year, has yielded a 76% value gain. We have held onto this investment for seven months, and it is still too early to determine what kind of internal rate of return (IRR) it will provide. However, Tesla represents an excellent example of a founder-led, competitively advantaged business model that we aim to hold for years.”

Tesla, Inc. (NASDAQ:TSLA) ranks 23rd on hedge funds' list of the 30 most popular stocks. According to our data, at the end of the second quarter of 2025, 115 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) shares, up from 104 in the previous quarter. Despite the potential we see in Tesla, Inc. (NASDAQ:TSLA) as an investment opportunity, we believe that some AI stocks offer greater profit potential and carry less risk. If you are looking for a highly undervalued AI stock that has significant potential to benefit from the Trump-era tariffs and reshoring trend, be sure to check out our free report on the best short-term AI stock.

In another article, we will provide details regarding Tesla, Inc. (NASDAQ:TSLA) and share the best revenue-growing stocks worth investing in. Additionally, to view the hedge fund investor letters for the Q3 2025 period, please visit our hedge fund investor letter page.