Sands Capital Technology Innovators Fund liquidated its position in Okta (OKTA) in the third quarter
Sands Capital, an investment management firm, has released its Q3 2025 investor letter for the Sands Capital Technology Innovators Fund. A copy of the letter can be downloaded here. Technology innovators focus on pioneering companies around the world that are the primary drivers or beneficiaries of significant long-term technological change. The fund returned 8.4% (net) in the third quarter, compared to a return of 12.5% for the benchmark, the MSCI ACWI Info Tech and Communication Services Index. Despite concentrated leadership, global stocks appreciated in the third quarter, according to the MSCI ACWI index. The United States was responsible for almost 70 percent of the index’s rise, while developed markets outside the United States and emerging markets also generated positive returns. You can check out the fund’s top 5 holdings to learn more about its top picks for 2025.
In its third quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as Okta, Inc. (NASDAQ: OKTA). Okta, Inc. (NASDAQ: OKTA) is an identity partner that provides products and services to manage and secure identities. Okta, Inc. (NASDAQ:OKTA)’s one-month return was -11.80% and its shares lost 0.64% of their value over the past 52 weeks. On November 28, 2025, Okta, Inc. (NASDAQ: OKTA) stock closed at $80.33 per share, with a market cap of $14.161 billion.
Sands Capital Technology Innovators Fund stated the following regarding Okta, Inc. (NASDAQ: OKTA) in its Q3 2025 Investor Letter:
“Finally, we liquidated our investment in Okta, Inc. (NASDAQ: OKTA) to reallocate capital to higher-conviction opportunities. Since our initial investment in March 2020, Okta has faced challenges, including security breaches and a smaller addressable market than expected, in part due to Microsoft’s bundling. These issues contributed to a faster-than-expected deceleration in revenue growth. Although we remained patient, waiting for improved execution, broader product adoption, and agentic AI tailwinds, we lost confidence in management’s ability to make Okta the leader in identity. After a prolonged downturn in the software industry, we no longer view Okta as offering a compelling balance of risk and opportunity compared to other companies in which we are more confident. »
Okta, Inc. (NASDAQ:OKTA) is not on our list of the 30 most popular stocks among hedge funds. According to our database, 55 hedge fund portfolios held Okta, Inc. (NASDAQ: OKTA) at the end of the third quarter, up from 57 in the previous quarter. While we recognize the potential of Okta, Inc. (NASDAQ:OKTA) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for a hugely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the reshoring trend, check out our free report on the best AI stock in the short term.
