Summers Value Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Summers Value Fund LP returned a net return of -1.8% net in Q2 2025, trailing the 8.5% return of the Russell 2000 Index ETF (IWM) and the 4.9% return for the Russell 2000 Value Index ETF (IWN). Year-to-date, the fund is down 12.8% net compared to (-1.8%) and (-3.2%) returns for the indexes, respectively. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its second-quarter 2025 investor letter, Summers Value Fund highlighted stocks such as Journey Medical Corporation (NASDAQ:DERM). Journey Medical Corporation (NASDAQ:DERM) engages in the development and commercialization of pharmaceutical products for the treatment of dermatological conditions. The one-month return of Journey Medical Corporation (NASDAQ:DERM) was -1.35%, and its shares gained 41.47% of their value over the last 52 weeks. On September 19, 2025, Journey Medical Corporation (NASDAQ:DERM) stock closed at $7.30 per share, with a market capitalization of $192.062 million.
Summers Value Fund stated the following regarding Journey Medical Corporation (NASDAQ:DERM) in its second quarter 2025 investor letter:
“We began building a position in Journey Medical Corporation (NASDAQ:DERM) in February. Journey is a dermatology-focused pharmaceutical company with products including Accutane for the treatment of acne and Qbrexza for excessive underarm sweating (hyperhidrosis). The company generated $55 million in revenue in 2024, with a modest operating loss. Journey is led by CEO Claude Marauoi, along with several senior members who previously worked at Medicis, a dermatology company acquired by Bausch Health for $2.6 billion in 2012. This group brings deep sector experience and holds a significant equity stake in the business.
We were attracted to Journey ahead of the launch of Emrosi, a new oral treatment for rosacea approved by the FDA in November 2024. In Phase 3 trials, Emrosi was tested head-to-head against Oracea, the prior standard of care (with peak sales of over $300 million before going generic) and showed superior efficacy with a similar safety profile. With patent protection through 2039, we believe Emrosi is well positioned to become the new standard of care among oral rosacea therapies.
Emrosi launched in April, and early prescription demand has been strong, with sales already annualizing over $15 million. Journey’s cost structure — including thirty-five sales reps — is already in place, so revenue growth should scale efficiently. We believe Emrosi could reach $100 million in sales within a few years, making the company profitable and cash flow positive. We forecast untaxed earnings per share of $1.50 by 2027 and assign a price target of $20 per share.”
Journey Medical Corporation (NASDAQ:DERM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 4 hedge fund portfolios held Journey Medical Corporation (NASDAQ:DERM) at the end of the second quarter, compared to 6 in the previous quarter. Journey Medical Corporation’s (NASDAQ:DERM) revenue for the second quarter of 2025 was $15 million compared to $14.9 million in Q2 2024. While we acknowledge the risk and potential of Journey Medical Corporation (NASDAQ:DERM) 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 Journey Medical Corporation (NASDAQ:DERM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Journey Medical Corporation (NASDAQ:DERM) and shared the list of healthcare stocks are surging in 2025. In addition, please check out our hedge fund investor letters Q2 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.
