Illustrating Minot Light Capital Partners’ Investment Process: Stran & Company (SWAG) in Focus

Minot Light Capital Partners, an investment management company, released its Q3 2025 investment letter. A copy of the letter can be downloaded here. In the quarter, Minot Light generated solid returns for limited partners, with a net of 7.6%. However, on a net basis, the performance underperformed the benchmarks, particularly the micro-cap benchmark’s 17.1% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Minot Light Capital Partners highlighted stocks such as Stran & Company, Inc. (NASDAQ:SWAG). Stran & Company, Inc. (NASDAQ:SWAG) is an outsourced marketing solutions company. The one-month return for Stran & Company, Inc. (NASDAQ:SWAG) was -19.42%, and its shares gained 64.37% over the last 52 weeks. On December 23, 2025, Stran & Company, Inc. (NASDAQ:SWAG) stock closed at $1.66 per share, with a market capitalization of $30.802 million.

Minot Light Capital Partners stated the following regarding Stran & Company, Inc. (NASDAQ:SWAG) in its third quarter 2025 investor letter:

“As in each quarterly letter, we will highlight a current holding to illustrate our investment process. This quarter, we feature Stran & Company, Inc. (NASDAQ:SWAG) – a $33M market cap promotional products company based in Quincy, MA that we have closely followed since its 2021 IPO. Because the company is headquartered in our backyard, we have been able to meet with management a number of times and attended the company’s most recent open house, where we were able to speak with many of Stran’s customers. With no sell-side coverage and daily volume of ~$160K, Stran exemplifies the type of overlooked small-cap opportunity we seek out.

Stran designs and sources custom branded merchandise, which is an effective and low-cost marketing channel for its clients. We were initially drawn to the company’s overcapitalized balance sheet, increasingly strong position in the highly fragmented promotional products industry, and emerging scale advantages as Stran’s revenues have grown from $30M in FY19 to over $100M today. For example, many companies in the promotional products industry use wholesalers to purchase promotional products – with growing scale and purchasing power, Stran now has direct relationships with manufacturing facilities in the U.S. and overseas, allowing it to be more competitive on pricing to win new customers. We anticipate this scale dynamic to improve as the company grows, providing further opportunities for organic revenue expansion. The company is also pursuing an acquisition strategy to expand into new industry verticals, thereby growing its customer base and increasing cross sell opportunities. In our view, Stran’s expanding scale and customer base are strengthening its competitive advantage. This scale-begets-scale dynamic is one that we always look for in any micro cap stock, particularly one that is profitable.…” (Click here to read the full text)

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.