Is BioHarvest Sciences (BHST) a Long-Term Compounder?

Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. The Strategy underperformed the Russell 2000 Index during the fourth quarter as well as in FY2025. The stock selection drove the underperformance of the Strategy in the quarter. The strategy’s emphasis on high-quality stocks lagged behind broader market trends. However, the firm expects the environment to be more favorable for high-quality businesses in 2026. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Riverwater Partners Small Cap Strategy highlighted stocks like BioHarvest Sciences Inc. (NASDAQ:BHST). BioHarvest Sciences Inc. (NASDAQ:BHST) is a biotechnology company that engages in the development of a technology that enables plant cells to generate higher concentrations of active ingredients. BioHarvest Sciences Inc. (NASDAQ:BHST) shares traded between $4.72 and $12.80 over the past 52 weeks. On January 22, 2026, BioHarvest Sciences Inc. (NASDAQ:BHST) stock closed at $5.77 per share. One-month return of BioHarvest Sciences Inc. (NASDAQ:BHST) was 8.26%, and its shares lost 49.87% of their value over the last three months. BioHarvest Sciences Inc. (NASDAQ:BHST) has a market capitalization of $130.788 million.

Riverwater Partners Small Cap Strategy stated the following regarding BioHarvest Sciences Inc. (NASDAQ:BHST) in its fourth quarter 2025 investor letter:

“We initiated positions in several companies during the quarter that align with our focus on quality businesses trading at attractive valuations. BioHarvest Sciences Inc. (NASDAQ:BHST): During the fourth quarter, the team initiated a position in BioHarvest Sciences Inc. The BHST story has been on our radar for approximately 18 months, with multiple meetings with the CEO both in person and virtually. The firm participated in the company’s recent secondary offering at a discount to its recent trading valuation. BHST’s Botanical Synthesis platform is particularly compelling—it grows plant cells in a proprietary BioHarvester for use in food, beverage, pharma, and cosmetics products. This technology enables the mass production of plant phytochemicals without the need for a vast environmental footprint—a compelling sustainability story. BHST currently generates revenue from its VINIA nutraceuticals franchise, which uses resveratrol derived from grapes to promote strong circulation and other health benefits. We initiated a small initial position and intend to increase it over the next 6–12 months as we see the company execute on its plan. We believe BHST can be a long-term compounder over time.”

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BioHarvest Sciences Inc. (NASDAQ:BHST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. Q3 2025 results show BioHarvest Sciences Inc. (NASDAQ:BHST) generated $9.1 million in revenue, representing 39% growth year over year. While we acknowledge the risk and potential of BioHarvest Sciences Inc. (NASDAQ:BHST) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BioHarvest Sciences Inc. (NASDAQ:BHST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered BioHarvest Sciences Inc. (NASDAQ:BHST) and shared the list of consumer defensive stocks with more than 50% upside. In addition, please check out our hedge fund investor letters Q4 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.