Multiple Contraction Hit Atlassian Corp. (TEAM) in Q3

Core Insights - Hardman Johnston Global Advisors reported that its "Global Equity Strategy" portfolio underperformed in Q3 2025, returning 5.02% net of fees compared to 7.62% for the MSCI AC World Net Index [1] Company Performance - Atlassian Corporation (NASDAQ:TEAM) is highlighted as a key stock in the investor letter, with a one-month return of -8.84% and a 52-week loss of 37.43%, closing at $161.12 per share on December 24, 2025, with a market capitalization of $42.412 billion [2] - The company exceeded expectations in its FY4Q results and provided a conservative FY25 guidance, indicating confidence in sustaining over 20% topline growth despite recent stock performance challenges [3] Sector Analysis - The Information Technology sector, particularly Atlassian, was a top detractor from relative performance in Q3 2025 due to multiple contraction, influenced by the release of OpenAI's GPT-5 and its implications for the SaaS sector [3] - The valuation derating of Atlassian reflects uncertainty regarding the role of application software in the generative AI era, especially in DevOps where AI-assisted coding is gaining traction [3] Hedge Fund Interest - Atlassian Corporation was held by 64 hedge fund portfolios at the end of Q2 2025, a decrease from 82 in the previous quarter, indicating a decline in hedge fund interest [4] - Despite its potential, the company is viewed as having less upside compared to certain AI stocks, which are perceived to carry lower downside risk [4]