Here’s Why Hayden Capital Sold Its Position in New Oriental Education (EDU)

Core Insights - Hayden Capital's fourth-quarter 2025 investment letter emphasizes the unpredictability of markets, showcasing broad strength and resilience, with U.S. equities achieving double-digit gains and international markets outperforming U.S. stocks for the first time since 2017 [1] Investment Performance - In Q4 2025, Hayden Capital's portfolio returned -12.9%, while the S&P 500 and MSCI World returned +2.7% and +3.3% respectively [1] - Since inception, the portfolio has delivered an annualized return of +14.8% after fees, outperforming the S&P 500's +13.5% and MSCI World's +10.3% [1] Portfolio Composition - The portfolio allocation includes approximately 42% in Asia, ~41% in North America, ~16% in Latin America, and the remainder in cash [1] Market Sentiment - The influence of AI has led to market responses driven more by fear and rising uncertainty rather than factual data [1] Company Focus: New Oriental Education & Technology Group Inc. - New Oriental Education & Technology Group Inc. (NYSE:EDU) is highlighted as a significant stock, with a market capitalization of $9.12 billion [2] - As of February 26, 2026, New Oriental's stock closed at $55.74, with a one-month return of -7.68% and a 52-week gain of 15.93% [2] - Hayden Capital sold its remaining position in New Oriental during Q4 2025, noting that the opportunity arose after a severe decline in the company's stock due to regulatory crackdowns and market conditions [3]