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

Core Insights - Prosper Stars & Stripes achieved a net return of +9.8% in Q3 2025, outperforming its peer group which returned +3.8% and the Russell 2000 Index which returned +12.4% [1] - Year-to-date, the fund returned +8.6%, lagging behind the HFRI's +13.6% and the Russell's +10.4% [1] - The fund's long book performed well, while the short book negatively impacted overall performance [1] Company Insights - Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) was highlighted as a significant stock in the fund's portfolio, with a one-month return of 7.04% but a 52-week loss of 54.39% [2] - As of November 26, 2025, Grid Dynamics had a market capitalization of $735.261 million, with shares closing at $8.67 [2] - The company is involved in IT consulting and advanced analytics, serving Fortune 500 clients, but faces challenges due to client spending apprehension and the impact of Generative AI on demand [3] - Grid Dynamics was identified as vulnerable to disruption, trading at approximately 16x FY24 EBITDA, and the fund closed its position shortly after Q3 due to these pressures [3]