Lakehouse Capital, a Sydney-based investment manager, released its “Lakehouse Global Growth Fund” March 2025 investor letter. A copy of the letter can be downloaded here. March saw a spike in equity market volatility due to uncertainty surrounding Trump’s trade policy. The growth-focused strategy had a difficult month since markets despise uncertainty, and current events caused a widespread selloff. Against this backdrop, the Fund returned -7.4% net of fees and expenses for the month compared to -4.2% for its benchmark. Since its inception in December 2017, the Fund has returned 224.5% compared to 126.3% for its benchmark, the MSCI All Country World Index, Net Total Returns (AUD). In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its March quarter 2025 investor letter, Lakehouse Global Growth Fund emphasized stocks such as Sea Limited (NYSE:SE). Sea Limited (NYSE:SE) engages in the digital entertainment, e-commerce, and digital financial service businesses. The one-month return of Sea Limited (NYSE:SE) was -17.34%, and its shares gained 85.15% of their value over the last 52 weeks. On April 8, 2025, Sea Limited (NYSE:SE) stock closed at $105.57 per share with a market capitalization of $60.633 billion.
Lakehouse Global Growth Fund stated the following regarding Sea Limited (NYSE:SE) in its March 2025 investor letter:
“Sea Limited (NYSE:SE) delivered an impressive result with a healthy combination of strong growth and improving profitability. Revenue grew 37% to $5.0 billion – the fastest growth in nearly three years – and adjusted EBITDA grew 366% to $591 million. The company’s core e-commerce business, Shopee, continued to extend its leadership across key markets, namely Indonesia and Thailand, with overall Gross Merchandise Volume (GMV) increasing 28% to $28.6 billion. Shopee’s marketplace take rate also improved 160 bps year on-year to 12.8%, driven by higher commissions and increased ad adoption. Importantly, recent fee hikes haven’t slowed GMV growth, which is a testament to Shopee’s pricing power driven by the value it creates for sellers.”
An e-commerce platform displaying a wide range of products to customers online.
Sea Limited (NYSE:SE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 86 hedge fund portfolios held Sea Limited (NYSE:SE) at the end of the fourth quarter compared to 58 in the third quarter. Sea Limited’s (NYSE:SE) total GAAP revenue increased 37% year-on-year to $5 billion in the fourth quarter of 2024 and 29% year-on-year to $16.8 billion for the full year of 2024. While we acknowledge the potential of Sea Limited (NYSE:SE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We covered Sea Limited (NYSE:SE) in another article, where we shared the list of top stocks to buy according to Think Investments. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.