Prosper Stars & Stripes Closed Its Short Position in Grid Dynamics Holdings (GDYN) in Q3

3 days ago 6

Soumya Eswaran

Thu, November 27, 2025 astatine 8:21 AM CST 3 min read

Prosper Stars & Stripes, a long/short equity fund, precocious released its third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. In the 3rd 4th of 2025, Prosper Stars & Stripes achieved a nett instrumentality of +9.8%. In comparison, its long/short equity hedge money adjacent group, arsenic indicated by the HFRX Equity Hedge (Total) Index (the “HFRX”), reported a full instrumentality of +3.8%. Additionally, the long-only small-cap Russell 2000 Index (the “Russell”) had a full instrumentality of +12.4%. Year to date, the money returned +8.6% compared to a full instrumentality of +13.6% for the HFRI and +10.4% for the Russell. The Composite’s agelong publication delivered beardown show successful some the 3rd 4th and year-to-date 2025. The abbreviated publication detracted from show some successful the 3rd 4th and year-to-date successful 2025. In addition, delight cheque the fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Prosper Stars & Stripes highlighted stocks specified arsenic Grid Dynamics Holdings, Inc. (NASDAQ:GDYN). Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) is simply a exertion institution that provides exertion consulting, level and merchandise engineering, and analytics services. The one-month instrumentality of Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) was 7.04%, and its shares mislaid 54.39% of their worth implicit the past 52 weeks. On November 26, 2025, Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) banal closed astatine $8.67 per share, with a marketplace capitalization of $735.261 million.

Prosper Stars & Stripes stated the pursuing regarding Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) successful its 3rd 4th 2025 capitalist letter:

"Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) was the second-best contributor successful the abbreviated publication during Q3 2025. The institution provides IT consulting, level and merchandise engineering, and precocious analytics to Fortune 500 companies, supporting their integer transformations. Unsurprisingly, IT consulting has historically been a unchangeable maturation industry, with Consulting Quest estimating 5-8% CAGR pre-COVID. However, the advent of ChatGPT successful precocious 2022 introduced a disruptive adaptable to this consistency. As portion of our process, we look for structural changes successful industries to place abbreviated opportunities. We viewed Grid Dynamics arsenic susceptible to disruption – it was besides trading astatine astir 16x FY24 EBITDA. During the quarter, we judge respective factors contributed to the stock’s weakness, including lawsuit spending apprehension amid tariff uncertainty and broader macro challenges. The astir important headwind successful our presumption was the interaction of Generative AI connected lawsuit demand. Combined with lawsuit attraction (top 10 customers relationship for 56% of revenue), these pressures drove a crisp diminution successful the banal price. We closed the presumption soon aft quarter-end."