Rogue Funds, an investment management company, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund depreciated 12.4% net of fees in the quarter. The firm anticipates significant volatility in the near future. Because of the Fund’s concentration, significant declines as well as significant rises in the total returns throughout the course of the year are not unusual. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first quarter 2025 investor letter, Rogue Funds highlighted stocks such as Biotricity, Inc. (OTC:BTCY). Biotricity, Inc. (OTC:BTCY) is a medical technology company. The one-month return of Biotricity, Inc. (OTC:BTCY) was -19.98%, and its shares lost 45.13% of their value over the last 52 weeks. On July 3, 2025, Biotricity, Inc. (OTC:BTCY) stock closed at $0.42 per share, with a market capitalization of $10.465 million.
Rogue Funds stated the following regarding Biotricity, Inc. (OTC:BTCY) in its first quarter 2025 investor letter:
“Biotricity, Inc. (OTC:BTCY): This isn’t a particularly new holding for the company, but it has been one that we have slowly built a position in since August/September. The company manufactures and sells a three-lead heart monitor and supplies technology that helps in predictability of heart related issues. It can be worn for 30 days and they maintain a 99% retention rate. The device is the best in its class, and they have grown at a solid 25%+ clip to $13mm in revenue that is likely to increase in the near future. In the fall of 2023/early 2024 they began switching their company to focus on providing AI benefits for their device and allowing for a TAAS/SAAS conversion which slowed down sales initially but has led to a large amount of pilot studies taking place. This SAAS conversion has allowed the gross margin to expand significantly, which I expect to continue through the year.
They have a large debt load with a lot of convertibles and preferred stock but seem to have avoided bankruptcy. The pilot studies are key to the thesis and will allow for rapid revenue expansion, leading to highly accretive cash flow since their operating model has become extremely fixed. they are able to target their relatively toxic preferreds. I believe there is a high chance by this time next year the company will be producing $25mm-$30mm in ARR with $6mm+ in FCF. Although there will definitely be dilution, if we assume a safe bet of 80% dilution (which I actually believe is much higher than what’s realistic) we end up with a company trading at $20mm fully diluted ($40mm EV, not including paying off preferreds and debt) growing at 30%+ per year (and most likely even faster once they win these pilot studies) with a highly accretive FCF model, most likely newly refinanced debt, and the ability to pay down their term loans.
The good news is that these pilot studies beginning full ramp are weeks away not months away and they are in an extreme inflection point. The company could begin to experience growth well beyond 30% and this would push the valuation to insane heights as a company like this should be trading at 8x revenue once they show an ability to produce consistent cash flow. We never take on companies this small, but the opportunity is too good to pass up and could lead to a 10x-20x in the next 18-24 months.”
A medical professional wearing a lab coat using an advanced ECG device.
Biotricity, Inc. (OTC:BTCY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Biotricity, Inc. (OTC:BTCY) 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 Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of BTCY 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.
