Here’s Why Sands Capital Technology Innovators Fund Sold CrowdStrike Holdings (CRWD)

• StockStory Top Pick CRWD +1.52%

Sands Capital, an investment management company, 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 businesses worldwide that serve as key drivers or beneficiaries of significant, long-term technological changes. The fund returned 8.4% (net) in the third quarter compared to a 12.5% return for the benchmark, MSCI ACWI Info Tech and Communication Services Index. Despite concentrated leadership, global equities appreciated in the third quarter, as measured by the MSCI ACWI. The United States accounted for almost 70 percent of the index's increase, while developed markets outside the U.S. and emerging markets also provided positive returns. You can check the fund’s top 5 holdings to know more about its best picks for 2025.

In its third-quarter 2025 investor letter, Sands Capital Technology Innovators Fund highlighted stocks such as CrowdStrike Holdings, Inc. (NASDAQ:CRWD). CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a global cybersecurity solutions provider. The one-month return of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) was -7.75%, and its shares gained 46.82% of their value over the last 52 weeks. On November 28, 2025, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) stock closed at $509.16 per share, with a market capitalization of $127.776 billion.

Sands Capital Technology Innovators Fund stated the following regarding CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its third quarter 2025 investor letter:

"We exited our position in CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to fund additions to other high-growth, high-valuation businesses that we estimate offer greater return potential. While we continue to view CrowdStrike as one of the leading cybersecurity companies, strong share price appreciation since our initial investment increased its valuation and lowered our expected returns. We redeployed the capital into Figma and Duolingo, which we believe present a more attractive balance of growth and valuation."

CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held CrowdStrike Holdings, Inc. (NASDAQ:CRWD) at the end of the third quarter, the same as in the previous quarter. While we acknowledge the potential of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered CrowdStrike Holdings, Inc. (NASDAQ:CRWD) and shared the list of best performing AI stocks heading into 2026. In addition, please check out our hedge fund investor letters Q3 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.