Right Tail Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Right Tail aims to generate high after-tax returns by investing in high-quality public companies for the long term. The letter discussed the three-year journey of Right Tail Capital since its inception. The firm has grown from approximately $3 million in AUM initially to about $27 million today. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its second quarter 2025 investor letter, Right Tail Capital highlighted stocks such as Insight Enterprises, Inc. (NASDAQ:NSIT). Insight Enterprises, Inc. (NASDAQ:NSIT) offers information technology, hardware, software, and services. The one-month return of Insight Enterprises, Inc. (NASDAQ:NSIT) was 9.07%, and its shares lost 25.97% of their value over the last 52 weeks. On July 9, 2025, Insight Enterprises, Inc. (NASDAQ:NSIT) stock closed at $145.44 per share, with a market capitalization of $4.644 billion.
Right Tail Capital stated the following regarding Insight Enterprises, Inc. (NASDAQ:NSIT) in its second quarter 2025 investor letter:
“Insight Enterprises, Inc. (NASDAQ:NSIT) (NSIT; exited mid 2025). I discussed NSIT in our Q3 2024 shareholder letter. I considered this part of an investment alongside CDW. For our 2+ year holding period, NSIT was a pretty good investment with the stock arguably performing better than the business. With murky company fundamentals and potential positive change agent ValueAct selling some of their position, I thought it was best to move on from this small position.”
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Insight Enterprises, Inc. (NASDAQ:NSIT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Insight Enterprises, Inc. (NASDAQ:NSIT) at the end of the first quarter, which was 26 in the previous quarter. Insight Enterprises, Inc. (NASDAQ:NSIT) generated net revenue of $2.1 billion in the first quarter of 2025, marking a 12% decline from Q1 2024. While we acknowledge the potential of NSIT 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 Insight Enterprises, Inc. (NASDAQ:NSIT) and shared Prosper Stars & Stripes Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
