Sands Capital, an investment management company, recently released its Q3 2025 investor letter for the “Sands Capital Technology Innovators Fund.” The fund focuses on pioneering businesses worldwide that are key drivers or beneficiaries of significant, long-term technological changes. In the third quarter, the fund returned 8.4% (net), slightly underperforming the benchmark, MSCI ACWI Info Tech and Communication Services Index, which saw a 12.5% return.
Despite the concentrated leadership, global equities appreciated in the third quarter, with the United States accounting for almost 70 percent of the index’s increase. Developed markets outside the U.S. and emerging markets also provided positive returns. For more insights into the fund’s top holdings and best picks for 2025, interested individuals can refer to the investor letter available for download.
One of the highlighted stocks in the letter is Klaviyo, Inc. (NYSE:KVYO), a technology company that provides a software-as-a-service platform. Klaviyo, Inc. (NYSE:KVYO) experienced a one-month return of 7.65%, although its shares lost 23.39% of their value over the last 52 weeks. As of November 28, 2025, Klaviyo, Inc. (NYSE:KVYO) stock closed at $28.56 per share, with a market capitalization of $8.624 billion.
In the investor letter, Sands Capital Technology Innovators Fund expressed optimism about Klaviyo, Inc. (NYSE:KVYO) despite muted sentiment in the market. The company is praised for its innovative business-to-consumer (B2C) marketing technology, strong second-quarter performance, record customer additions, and guidance raise. Sands Capital expects investor sentiment to improve over time as Klaviyo continues its strong execution, potential platform business evolution, and steady pipeline of new product launches.
While Klaviyo, Inc. (NYSE:KVYO) is not among the 30 Most Popular Stocks Among Hedge Funds, it is held in 48 hedge fund portfolios as of the end of the third quarter. The company reported revenue of $311 million in Q3 2025, reflecting a 32% year-over-year increase. While Klaviyo shows promise as an investment, some AI stocks may offer greater upside potential and less downside risk. Investors seeking undervalued AI stocks that stand to benefit from current economic trends can explore the free report on the best short-term AI stock for further insights.
