Alphabet (GOOG) Crowned Top Performer for Outperforming Value Fund
In a world where investors often chase the latest speculative fad, one prominent fund has proven that a value-oriented, long-term approach can still deliver blockbuster results. Alphabet, the parent company of Google, has just been named the top performer for the Tapasya Investment Fund I, leading the concentrated portfolio to a period of massive outperformance against the broader market.
The Texas-based Tapasya Investment Fund I, launched in August 2022 by Founder and Managing Partner Pratik Kodial, recently celebrated its success in its 2026 Annual Letter. The fund has generated an impressive 26.1% gross Compound Annual Growth Rate (CAGR) since its inception, a rate that has “materially outperformed” the S&P 500’s 16.6% CAGR over the same period. The key to this success, according to the letter, lies in a strategic, high-conviction bet on Alphabet (GOOG).
The Thesis: Betting Against the Fear
Alphabet was a foundational holding for the fund, and its initial purchase was rooted in a classic value investment principle: buying a great business when its stock is discounted due to temporary, overblown fears. The fund’s thesis was that the market was “heavily discounting” the stock because of three primary concerns: anxiety over the long-term dominance of its core search business, the perception of “early stumbles” in its artificial intelligence (AI) efforts, and the ever-present shadow of a potential antitrust breakup.
Mr. Kodial and his team believed the market was “underestimating the significant competitive advantages, or ‘moats,'” surrounding the core Google business. That conviction paid off handsomely throughout 2025.
Alphabet’s AI Boom Pays Off
Alphabet’s stock performance in 2025 was nothing short of spectacular, vindicating the long-term holders. The company’s shares soared by 65% for the year, earning it the title of the best-performing stock among the vaunted “Magnificent Seven” group of tech giants.
This massive rally was fueled by a significant reversal in the narrative surrounding its AI strategy. Investor confidence surged following the successful launch of its advanced Gemini 3 AI model in November, which was seen by many as a clear differentiator against its rivals. The company’s in-house custom TPU chips for AI workloads also proved the strength of its technological foundation. These advancements allowed the company to move beyond its early 2025 slump and rapidly regain investor enthusiasm.
Furthermore, an easing of regulatory fears provided a critical boost. The U.S. antitrust ruling over its Search business helped lift the regulatory “overhang” by avoiding structural remedies, such as the forced divestiture of Chrome or Android. By preserving its core assets, the ruling allowed the company to pivot its focus entirely to its AI-driven transformation.
Alphabet’s impressive run led it to a major valuation milestone on the global stage. Its market capitalization recently surpassed Apple’s for the first time since 2019, putting it just shy of a $4 trillion valuation and cementing its status as one of the world’s most valuable companies. This massive growth is precisely why Tapasya Fund’s management, which still holds the stock as a long-term position, believes their strategy of patience and conviction remains a powerful market force.
