iTeos Therapeutics (ITOS): An Example of Biotech Liquidations

LVS Advisory, a New York City-based full-service investment firm, recently released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first half of 2025, the LVS Event-Driven portfolio returned 3.6% (net of fees), and the LVS Growth Portfolio delivered 15.8% net of all fees and expenses. This compares to a 4.8% return for the high-yield bond index and a 6.2% gain for the S&P 500 index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, LVS Advisory highlighted stocks such as iTeos Therapeutics, Inc. (NASDAQ:ITOS). iTeos Therapeutics, Inc. (NASDAQ:ITOS) is a clinical-stage biopharmaceutical company. The one-month return of iTeos Therapeutics, Inc. (NASDAQ:ITOS) was -0.40%, and its shares lost 33.36% of their value over the last 52 weeks. On July 7, 2025, iTeos Therapeutics, Inc. (NASDAQ:ITOS) stock closed at $10.07 per share, with a market capitalization of $385.417 million.

LVS Advisory stated the following regarding iTeos Therapeutics, Inc. (NASDAQ:ITOS) in its second quarter 2025 investor letter:

“On May 13, 2025, iTeos Therapeutics, Inc. (NASDAQ:ITOS) announced poor results from its Clinical Phase 2 study for its leading drug candidate. The Company announced it would terminate the program and initiate a review of “strategic alternatives to maximize shareholder value”. At the time of that announcement, ITOS stock traded for $7.60 per share and had $12 per share of cash on its balance sheet (net of liabilities). On the heels of this news, we purchased shares for ~$7.71 on average.

Just two weeks later ITOS announced it would liquidate its assets and return all remaining cash to shareholders. The stock popped by 30% to over $10 per share. We continue to hold the stock as we believe there is incremental value to be gained but expect the situation to be resolved by the end of the year.…” (Click here to read the full text)

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A medical professional demonstrating a drug delivery process with the help of animated graphics, highlighting the ADCC activity of the company.

ITeos Therapeutics, Inc. (NASDAQ:iTOS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held iTeos Therapeutics, Inc. (NASDAQ:ITOS) at the end of the first quarter, compared to 31 in the previous quarter. While we acknowledge the potential of iTeos Therapeutics, Inc. (NASDAQ:ITOS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ITOS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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