Kerrisdale Capital Delivers 11.2% Return In Q4 And 2025 Return Of 26.1%; Highlights These Three Shorts In AI & Crypto

Kerrisdale Capital, in its latest Q4 2025 investor letter disclosed a 11.2% quarterly return. The gains were divided between October, November, and December to 2.5%, 4.7%, and 3.6%. These figures show that the portfolio significantly outperformed the S&P 500, which generated 2.7% for the quarter.

The CIO Sahm Adrangi analyzed key positions in the semiconductor and industrial sectors. He also highlighted several high-conviction shorts in the digital asset and AI infrastructure space. The letter was reviewed by Hedge Fund Alpha.

Long Book Analysis

Aixtron SE

Also see: Kerrisdale’s August Gains Push Fund to +15.4% YTD; Short Bet Against Pure Storage Highlights Strategy

Coming from the compound-semiconductor sector, AIXTRON represents a long position in Kerrisdale's portfolio. The manager’s opinion is that it is an unappreciated asset that is a crucial element in the semiconductor industry. It has a capitalisation of $2.2 billion and has drawn limited attention from investors. A dominant position in the metal-organic chemical vapor deposition tool sector serves as a core strength. These tools are essential for the production of compound semiconductors that allow increased performances including power, efficiency, and thermal tolerance.

With a 70%-90% market share comes from decades of understanding of the processes, unique tool design, and close cooperation with the scientific community. Factoring these down makes Aixtron tools almost impossible to duplicate.