Why One Fund Added 415,000 Shares of a Software Stock Last Year That’s Down 26%

• Connecticut-based Manatuck Hill Partners bought 415,000 shares of Zeta Global in the third quarter.

• The value of the total stake increased by approximately $9.5 million during the period.

• The fund now owns 705,000 Zeta shares worth $14 million, accounting for approximately 4.6% of the fund’s assets, making it the largest publicly disclosed holding.

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On November 14, Connecticut-based Manatuck Hill Partners announced the acquisition of an additional 415,000 shares of Zeta Global (NYSE:ZETA)increasing the total position value by approximately $9.5 million.

Manatuck Hill Partners holds its position, according to a Nov. 14 filing with the Securities and Exchange Commission Zeta Global (NYSE:ZETA) with 415,000 shares compared to the previous quarter. The expanded stake brought the fund’s total Zeta Global holdings to 705,000 shares worth $14.0 million as of September 30.

Zeta Global now accounts for 4.6% of Manatuck Hill Partners’ reportable 13F assets under management.

Top positions after filing:

• NYSE: ZETA: $14 million (4.6% of assets under management)

• NASDAQ: REAL: $13.6 million (4.6% of assets under management)

• NYSE: IMAX: $11.1 million (3.8% of assets under management)

• NASDAQ: OPRX: $9.7 million (3.3% of assets under management)

• NYSE: HLF: $8.4 million (2.9% of assets under management)

On Friday, shares were trading at $19.05, down 26% over the past year and well underperforming the S&P 500, which rose 13% over the same period.

• Zeta Global offers an omnichannel cloud-based marketing platform, including consumer intelligence, marketing automation and customer data solutions.

• The company generates revenue through subscriptions to enterprise software and data analytics services, using machine learning and proprietary, opt-in data sets.

• It serves large enterprises and organizations looking for advanced marketing, customer engagement and data-driven decision-making capabilities.

Zeta Global operates extensively in the technology sector, providing data-driven marketing software and analytics to enterprise clients. The company differentiates itself through robust machine learning algorithms and a significant proprietary data set, allowing clients to predict consumer intent and optimize marketing strategies. With a focus on omnichannel engagement, Zeta Global is positioned to support organizations looking to consolidate and leverage consumer data for competitive advantage.

The move appears to be a vote of confidence in Zeta’s ability to translate product momentum into sustainable financial performance – despite the stock’s sharp decline since last year’s peak. The company just completed its 17th consecutive beat-and-raise quarter, with revenue growth of 26% to $337 million, expansion of adjusted EBITDA margins and free cash flow of $47 million, up 83% year over year. That consistency stands out in a volatile software environment and helps explain why an investor would add exposure at a time when sentiment toward adtech and martech names has cooled.

Manatuck Hill Partners’ larger position also fits the pattern of capital concentration in mid-cap names with accelerating fundamentals. At 4.6% of reportable assets, Zeta now sits next to the fund’s significant holdings in The RealReal and IMAX, which is a sign of conviction rather than opportunistic trading.

For long-term investors, Zeta’s improved cash generation, rising number of “super-scaled” customers and 2026 guidance calling for another year of revenue growth above 20% create a clearer path to sustainable profitability. The risk is that the stock remains strongly sentiment-driven, but the fundamentals now provide a stronger bottom than a year ago.