On October 17, 2025, hedge fund TB Alternative Assets Ltd. disclosed a new position in Robinhood (HOOD -1.16%), acquiring 241,680 shares for an estimated $34.6 million based on the stock's average price for the third quarter of 2025.
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What happened
According to a filing with the Securities and Exchange Commission dated October 17, 2025, TB Alternative Assets reported a new position in Robinhood, acquiring 241,680 shares. The estimated transaction value for the third quarter of 2025 is $34.6 million. This stake brings the fund’s total reportable 13F assets to $668.39 million across 48 positions as of September 30, 2025.
What else to know
This new position in Robinhood now represents 5.2% of TB Alternative Assets' reportable U.S. equity holdings.
The fund's top holdings after the filing are:
- META: $76.97 million (11.5% of AUM)
- GOOG: $58.56 million (8.8% of AUM)
- INTC: $51.26 million (7.7% of AUM)
- PDD: $45.72 million (6.8% of AUM)
- MSTR: $40.60 million (6.1% of AUM)
As of October 16, 2025, shares of Robinhood were priced at $131.44, up 381.68% over the past year and outperforming the S&P 500 by 374.73 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.57 billion |
| Net income (TTM) | $1.79 billion |
| Price (as of market close October 16, 2025) | $131.44 |
| One-year price change | 381.7% |
Company snapshot
Robinhood operates at scale within the U.S. financial services sector, offering a digital-first platform that lowers barriers to entry for retail investing and trading.
The company provides a digital financial services platform for trading stocks, exchange-traded funds (ETFs), options, gold, and cryptocurrencies. It operates a commission-free, technology-driven business model focused on retail investors.
Robinhood serves a broad U.S. customer base seeking accessible, low-cost investment opportunities.
Foolish take
TB Alternative Assets made a noteworthy move by initiating a position in Robinhood shares, and it was a significant purchase. Robinhood stock is now the hedge fund's seventh largest holding as of Q3.
Robinhood is a compelling stock to own, considering the company is on a roll. Its second quarter sales of $989 million represented impressive 45% year-over-year growth. Its Q2 net income rose 105% to $386 million.
The company's Robinhood Gold subscription service added 1.5 million subscribers in Q2, a 76% year-over-year increase to 3.5 million. This demonstrates its strong ability to attract customers.
Robinhood's success also means its shares are not cheap. The stock sports a sky-high price-to-earnings (P/E) ratio exceeding 65. Contrast this to competitor Morgan Stanley's P/E multiple of 16. This makes TB Alternative Assets' big stake in Robinhood a curious move at this time.
Robinhood's diversification of revenue streams, such as from its Gold subscription fees, is perhaps one factor in the hedge fund's investment. But given the stock's high valuation, now is not the time to buy Robinhood shares.
Glossary
Position: A holding or investment in a particular security or asset by an individual or institution.
13F reportable portfolio: The collection of U.S. equity holdings that institutional investment managers must disclose quarterly to the Securities and Exchange Commission (SEC) via Form 13F.
AUM (Assets under management): The total market value of investments managed on behalf of clients by a fund or institution.
Stake: The amount of ownership or investment held in a company by an individual or institution.
Outperforming: Achieving a higher return or better performance compared to a specific benchmark or index.
TTM (Trailing twelve months): The 12-month period ending with the most recent quarterly report.
Equity holdings: Investments in shares of ownership in companies, typically publicly traded stocks.
Filing: An official document submitted to a regulatory authority, such as the SEC, often disclosing financial or investment information.
Retail investing: The act of individuals, rather than institutions, buying and selling securities for personal accounts.
Options: Financial contracts giving the right, but not the obligation, to buy or sell an asset at a set price before a certain date.
ETF (Exchange-traded fund): An investment fund traded on stock exchanges, holding a diversified portfolio of assets.
Cash management solutions: Financial services designed to help individuals or businesses manage cash flow, payments, and short-term investments efficiently.
