Arquitos Capital Management’s Updates on Liquidia Corporation (LQDA)

Arquitos Capital Management, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the third quarter, the fund delivered a net return of 29.6% bringing year-to-date gains to an impressive 66.8%. Arquitos Capital Management is an unconventional hedge fund that focuses on a select group of companies. They are also prepared to hold these companies for many years, sometimes even decades, as their businesses grow and the market eventually realizes their worth. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Arquitos Capital Management highlighted stocks such as Liquidia Corporation (NASDAQ:LQDA). Liquidia Corporation (NASDAQ:LQDA) is a biopharmaceutical company that develops, manufactures, and commercializes various products for unmet patient needs in the United States. The one-month return for Liquidia Corporation (NASDAQ:LQDA) was 21.31%, and its shares gained 196.82% over the last 52 weeks. On December 10, 2025, Liquidia Corporation (NASDAQ:LQDA) stock closed at $32.68 per share, with a market capitalization of $2.843 billion.

Arquitos Capital Management stated the following regarding Liquidia Corporation (NASDAQ:LQDA) in its third quarter 2025 investor letter:

“Liquidia Corporation’s (NASDAQ:LQDA) share price rose to $22.74 at the end of the third quarter, up from $11.76 at the start of the year. Our exposure is primarily through long-dated call options, reflecting my conviction in the company’s long-term potential.

In May, Liquidia received FDA approval for its flagship product, Yutrepia, an inhaled formulation of generic treprostinil used to treat Pulmonary Arterial Hypertension (PAH) and Pulmonary Hypertension associated with Interstitial Lung Disease (PH-ILD). Yutrepia utilizes Liquidia’s patented PRINT® production technology, which creates precise, uniform drug particles. Clinical studies and now real world experience show that PRINT improves treatment efficacy by delivering treprostinil more effectively to the deep lung with less patient effort and fewer side effects.

Yutrepia’s commercial launch has been exceptional. FDA approval came in late May 2025, and Liquidia’s Q2 2025 corporate update reported more than 900 unique patient prescriptions and more than 550 patient starts within the first 11 weeks. CEO Roger Jeffs, who has previously stated that he believes Liquidia could capture 80% to 90% of the market, said that “initial demand has exceeded even [his] own high expectations.”..” (Click here to read full text)

In another article, we covered Liquidia Corporation (NASDAQ:LQDA) and shared the list of best small-cap biotech stocks to buy according to analysts. In the previous quarter investor letter, Arquitos Capital Management associated with the Liquidia Corporation (NASDAQ:LQDA) case expressed that short-term uncertainty is not just a survival issue; it can also create opportunities. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.