Here’s Why Optimist Fund Trimmed Latham Group’s (SWIM) Position from 6% to 3%

Optimist Fund, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund’s objective is to achieve capital growth at a rate in the mid-teens or higher over the course of several decades. In Q4 2025, the Fund declined 8.5%. The Fund, although not yet five years old, invests with a five-year perspective. While short-term drawdowns can be tough, the Fund is optimistic about the portfolio’s fundamental performance and confident in prospective returns over the next five years. The Fund believes that current valuations significantly underestimate the earnings and cash flow the core holdings will produce in five years. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Optimist Fund highlighted stocks like Latham Group, Inc. (NASDAQ:SWIM). Latham Group, Inc. (NASDAQ:SWIM) is an in-ground residential swimming pool manufacturer operating across North America, Australia, and New Zealand. On February 27, 2026, Latham Group, Inc. (NASDAQ:SWIM) stock closed at $6.71 per share. One-month return of Latham Group, Inc. (NASDAQ:SWIM) was 5.84%, and its shares gained 21.78% over the past 52 weeks. Latham Group, Inc. (NASDAQ:SWIM) has a market capitalization of $782.76 million.

Optimist Fund stated the following regarding Latham Group, Inc. (NASDAQ:SWIM) in its fourth quarter 2025 investor letter:

“Latham Group, Inc. (NASDAQ:SWIM) – Latham delivered a solid third quarter, with net sales of approximately $162 million, up ~7.6% year-over-year, outperforming a generally flat U.S. in-ground pool market and reflecting continued traction across key product lines, including pool covers, liners, and fiberglass pools. Adjusted EBITDA itself grew roughly 28.5% to about $38.3 million. Latham also narrowed and modestly raised its full-year guidance, signaling confidence in its outlook despite broader industry headwinds, with net sales now expected in the ~$540–$550 million range and adjusted EBITDA of ~$92 $98 million. Overall, the quarter demonstrated a business that continues to grow revenue, expand profitability, and execute on strategic priorities even in challenging end-market conditions. We are pleased with results.