NewBridge Asset Management, an investment management company, recently shared its insights in the Q4 2025 letter for the “NewBridge Large Cap Growth Equity Strategy”. The letter highlights the performance of the equity markets in the fourth quarter, showcasing the continued upward momentum driven by resilient economic growth and solid corporate returns. In this quarter, large-cap growth outperformed, whereas in the previous quarter, small-cap and value equities surpassed the growth strategy. The NewBridge Large Cap Growth Strategy managed to generate a positive return in the quarter, although it lagged behind the benchmark, the Russell 1000® Growth Index.
Most portfolio companies exceeded their quarterly expectations, although there were a few that faced declines. One of the significant challenges mentioned in the letter was the contrasting returns between Uber Technologies, Inc., a significant holding in the portfolio, and Tesla, Inc., which was not owned by the portfolio. Despite these challenges, the market environment was generally favorable for the portfolio in the fourth quarter. The firm remains confident in its industry-leading companies, which are expected to deliver attractive financial results despite potential market volatility.
In the fourth quarter of 2025, NewBridge Large Cap Growth Equity Strategy highlighted Celsius Holdings, Inc. (NASDAQ:CELH) as one of the stocks of interest. Celsius Holdings, Inc. develops, markets, and distributes functional drinks and liquid supplements. The stock of Celsius Holdings, Inc. traded between $21.10 and $66.74 over the past 52 weeks, closing at $54.54 per share on January 26, 2026. The one-month return for Celsius Holdings, Inc. was 18.21%, with a 11.89% decline over the last three months. The company boasts a market capitalization of $14.06 billion.
Regarding Celsius Holdings, Inc. (NASDAQ:CELH), the letter stated that the stock has faced challenges since June, with sales growth in the energy drink industry slowing down and brands resorting to promotional tactics to boost demand, especially in the convenience store channel. Despite still growing faster than the category, Celsius Holdings, Inc. experienced a significant year-over-year growth slowdown. Additionally, estimates for the company’s sales and earnings were impacted by inventory optimization initiatives by its largest North American distributor, PepsiCo. The uncertainty surrounding the amount of product PepsiCo would take in each quarter led to a decision to exit the portfolio’s small position in CELH.
Celsius Holdings, Inc. (NASDAQ:CELH) is not among the 30 Most Popular Stocks Among Hedge Funds, with 58 hedge fund portfolios holding the stock at the end of the third quarter of 2025. While the company reported impressive revenue growth in Q3 2025, there are other AI stocks that offer greater upside potential with less downside risk. For investors seeking undervalued AI stocks, it is recommended to explore other options that align with their investment goals.
In conclusion, the Q4 2025 investor letter from NewBridge Asset Management provides valuable insights into the performance of the NewBridge Large Cap Growth Equity Strategy and its assessment of Celsius Holdings, Inc. as a troubled stock. Investors are encouraged to stay informed about market trends and explore potential investment opportunities based on their risk tolerance and financial objectives.
