2025 Mid Year Report

PayPal, Inc. (PYPL) 

In June PYPL was sold from the portfolio at a realized loss of -0.18%. The decision was driven by evolving competitive dynamic and a shift in portfolio strategy. While the original investment thesis remains largely intact—centered around the company’s ability to generate strong free cash flow at a compelling valuation—long-term prospects have become increasingly uncertain. Competitive pressures from Apple Pay and Google Pay, and the broader adoption of treasury backed cryptocurrencies as alternative payments methods constrain transaction volume growth and compress margins. PYPL has failed to pace with innovation in the payments space, choosing instead to reposition itself as a broader commerce platform. Despite its attractive valuation, the company’s weakening growth outlook no longer aligns with my investment philosophy.

 Hims & Hers Health, Inc. (HIMS) 

HIMS remains a core holding, averaging 57% of the portfolio over the last six months. While volatility remained high amid evolving growth outlooks, the company continues to expand its product lineup and enter new markets—enhancing diversification and reducing exposure to idiosyncratic product risk. Key growth drivers include increasing adoption of personalized, compounded weight loss treatments, hair loss medications, and sexual health products. HIMS maintains a string long-term potential as it expands into new markets. At a forward price-to-sales multiple of approximately 5x and projected revenue growth exceeding 50% this year, the stock remains attractive.

Separately, since initiating my position last year, HIMS has attracted greater attention from retail investors and short sellers. While I do not engage in short-term trading, I’ve monitored this position more closely others and will consider trimming or exiting if the market begins to fully price the fundamental asymmetry I originally identified.

 Reddit, Inc (RDDT) 

 his year RDDT became the most recent addition to the portfolio. While is has already contributed positive to returns, I believe it has long-term potential as a core holding.  

RDDT offers a differentiated model in the social media space by enabling users to join interest-based communities moderated by other users, all while preserving anonymity. Its organic, word-of-mouth-driven growth underscores the platform’s authenticity and global appeal. As user engagement and retention increase, RDDT is well-positioned to scale its targeted advertising business. Despite trading at a forward price-to-sales ratio of 10x, the company’s combination of growth and a clear path to profitability supports an attractive long-term investment case.

Portfolio Analysis 

Additional capital was contributed to the portfolio to seize opportunities in the market during elevated volatility. The capital infusion—made on April 22nd, which coincided with the market’s low for the year—effectively doubled the portfolio’s size on that day. In time-weighted return terms, this contribution functioned as a rebalancing event, reducing the relative weight of existing holdings. As the market rebounded, I was slow to fully deploy the new capital, which limited the portfolio’s recovery from the trough. While I do not attempt to time the market, I recognize that the timing of capital flows can meaningfully influence performance.