Here’s What Made Atai Capital Management Sell AstroNova (ALOT)

Atai Capital Management, an investment management firm, recently released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 32.8% in the second quarter, net of all fees, bringing the YTD returns to 29.4% net of all fees. This is compared to a 10.9% total return for the S&P 500, an 8.5% total return for the Russell 2000, and a 15.5% total return for the Russell Microcap for the quarter and 6.2%, -1.8% and -1.1%, respectively, for YTD. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Atai Capital Management highlighted stocks such as AstroNova, Inc. (NASDAQ:ALOT). AstroNova, Inc. (NASDAQ:ALOT) develops and manufactures specialty printers and data acquisition and analysis systems. The one-month return of AstroNova, Inc. (NASDAQ:ALOT) was -0.27%, and its shares lost 22.17% of their value over the last 52 weeks. On August 15, 2025, AstroNova, Inc. (NASDAQ:ALOT) stock closed at $11.27 per share with a market capitalization of $85.61 million.

Atai Capital Management stated the following regarding AstroNova, Inc. (NASDAQ:ALOT) in its second quarter 2025 investor letter:

"We first detailed our thesis on AstroNova, Inc. (NASDAQ:ALOT) in our Q1-2023 letter and have provided numerous updates in subsequent letters. In short, our investment was predicated on the view that AstroNova was a low-risk "under-earner" with an obvious path for earnings to normalize significantly higher.

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AstroNova, Inc. (NASDAQ:ALOT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held AstroNova, Inc. (NASDAQ:ALOT) at the end of the first quarter, which was 3 in the previous quarter. In the fiscal first quarter of 2026, AstroNova, Inc.'s (NASDAQ:ALOT) reported revenue of $37.7 million, grew 14.4% year over year and 0.9% sequentially. While we acknowledge the potential of AstroNova, Inc. (NASDAQ:ALOT) 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 AstroNova, Inc. (NASDAQ:ALOT) and shared Atai Capital Management's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.

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