Immersion Investment Partners, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Immersion Investment Partners returned 4.9% (net) in Q4 2025, compared to the Russell 2000Index’s 2.2% return and the Russell Microcap Index’s 6.3% gain. The yearly return was 45.4% compared to 12.8% and 23.0% returns for the indexes, respectively. The letter noted the massive investments being made in AI and raised concerns about energy demands and unclear monetization paths. The market is broadly penalizing tech companies whose business models aren’t adapting to AI, creating potential investment opportunities for those with innovative business models. The firm always makes careful decisions and maintains discipline when opportunities arise. Please review the Partnership’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Immersion Investment Partners highlighted stocks like Dutch Bros Inc. (NYSE:BROS). Dutch Bros Inc. (NYSE:BROS) is a US-based drive-thru shop incorporated in 1992. On February 3, 2026, Dutch Bros Inc. (NYSE:BROS) stock closed at $53.49 per share. Dutch Bros Inc. (NYSE:BROS) delivered a -15.38% return in the past month, and its shares are down 18.58% over the past twelve months. Dutch Bros Inc. (NYSE:BROS) has a market capitalization of $8.804 billion.
Immersion Investment Partners stated the following regarding Dutch Bros Inc. (NYSE:BROS) in its fourth quarter 2025 investor letter:
“Dutch Bros Inc. (NYSE:BROS) – (Doubted Champion) is a position that we have held since May 2024 and is now a top five holding in the fund. We believe that Dutch Bros is a rare, compelling restaurant asset in the public market landscape. It shares similar favorable long-term trends to restaurant success stories like Wingstop and Domino’s but is much earlier in its growth trajectory. Even more appealing is that it carries with it a cult-like following similar to Chick-fil-A or In-N-Out Burgers.
