Here’s What Hit Delcath Systems (DCTH) in Q3

Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported solid absolute returns in the quarter but lagged the benchmark as it did not keep pace with the strong rally. The strategy continues to focus on quality companies in the volatile environment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Riverwater Partners Micro Opportunities Strategy highlighted stocks such as Delcath Systems, Inc. (NASDAQ:DCTH). Delcath Systems, Inc. (NASDAQ:DCTH) is an interventional oncology company. The one-month return for Delcath Systems, Inc. (NASDAQ:DCTH) was 15.14%, and its shares lost 16.58% over the last 52 weeks. On December 15, 2025, Delcath Systems, Inc. (NASDAQ:DCTH) stock closed at $10.08 per share, with a market capitalization of $352.961 million.

Riverwater Partners Micro Opportunities Strategy stated the following regarding Delcath Systems, Inc. (NASDAQ:DCTH) in its third quarter 2025 investor letter:

“Delcath Systems, Inc. (NASDAQ:DCTH) is a commercial-stage oncology company focused on liver-directed cancer therapies. Its proprietary Hepzato Kit delivers high-dose chemotherapy directly to the liver while minimizing systemic exposure, allowing for targeted treatment of metastatic cancers that primarily affect the liver. The therapy is currently approved for ocular melanoma with liver metastases, with ongoing trials such as CHOPIN including first-line use, and exploring its potential in broader indications.

DCTH underperformed in the third quarter after a strong start to the year that saw the stock rally sharply on optimism surrounding its commercial launch and expectations for the upcoming CHOPIN trial results. Shares have since come off their highs as investors digested near-term headwinds, including pricing pressure tied to a higher mix of Medicaid patients and a slower-than-expected pace of site activations—though management remains on track with its rollout goals. Sentiment was further weighed down by uncertainty ahead of the CHOPIN data expected in October and by some market noise related to potential readouts from a competing therapy. Despite the recent volatility, we continue to like the name given its growing procedural volumes, improving revenue visibility, and the potential for strong CHOPIN results to expand use into first-line metastatic liver-directed therapy. With a clear clinical catalyst ahead and a differentiated treatment platform, Delcath remains one of the more compelling small-cap biotech stories heading into year-end.”

In another article, we covered Delcath Systems, Inc. (NASDAQ:DCTH) and shared the list of fast-growing small cap stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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