In Q3 2026, Meditation Capital reports a favorable period for its software holdings, driven by Salesforce’s acquisition of Braze, a positive rerating for Atlassian, and strong gains across Dynatrace and Workiva. The letter can be downloaded here. These successes validate the firm’s core investment philosophy: identifying companies with exceptional products, high growth, and low valuations that deliver tangible value to customers and society. Additionally, the discussion contrasts “AI trade” with “AI capex trade,” advocating caution with the latter due to its cyclicality, volatile revenues, and dependency on AI usage forecasts. Looking ahead, Meditation Capital remains disciplined in its search for high-quality compounders, tuning out near-term market momentum to compound capital safely over time. Also, check the Fund’s top five holdings to see its best picks for 2026.
In its Q3 2026 investor letter, Meditation Capital highlighted Klaviyo, Inc. (NYSE:KVYO). Klaviyo, Inc. (NYSE:KVYO) is a technology company that focuses on intelligent marketing automation and CRM software. On October 27, 2026, Klaviyo, Inc. (NYSE:KVYO) closed at $20.18 per share with a market capitalization of $5.75 billion. Klaviyo, Inc. (NYSE: KVYO) rose 28.29% over the past month but remains down 20.52% over the trailing 52 weeks.
Meditation Capital stated the following regarding Klaviyo, Inc. (NYSE:KVYO) in its Q3 2026 investor letter:
“We mentioned Klaviyo, Inc. (NYSE:KVYO) briefly in our last letter. Klaviyo is a very similar business to Braze, just attacking a different customer size (Klaviyo is SMB to mid-market, Braze is much higher upmarket in enterprise) and a more specialized sector (Klaviyo is focused on Shopify ecommerce merchants, Braze is for app centric direct-to-consumer companies across sectors).
Klaviyo is the dominant retention marketing platform for Shopify ecommerce brands (tracking indicates >50% market share in Shopify Plus brands). Retention marketing is the other side of the coin from acquisition marketing, e.g., spending to acquire customers on Facebook or Instagram. Retention marketing involves sending emails and texts to existing customers to try to get them to purchase again. Both sides are needed for a successful business, but retention marketing is near-free and thus far higher ROI than acquisition marketing. Retention marketing is also a key input in improving the ROI of acquisition marketing, by using automated and targeted engagement flows to further convert customers who clicked an ad (very expensive) and thus expressed interest but didn’t initially purchase (in other words, for the same ad dollar spend, a company with a better retention marketing program can meaningfully lower its cost per acquired customer). For many of Klaviyo’s customers, retention marketing through Klaviyo drives ~30% of their sales, making Klaviyo a key revenue contributor rather than just a cost line…” (Click here to read the full text)
