Laughing Water Capital, an investment management company, released its fourth-quarter 2025 investor letter. In the quarter, Laughing Water Capital returned ~6.8%, bringing the full-year returns to ~3.9% net of fees and expenses. In comparison, the SP500TR and R2000 returned approximately 2.7% and 2.2%, respectively, in the quarter, and finished the year up by 17.9% and 12.8%, respectively. A copy of the letter can be downloaded here. The Fund outperformed the indexes last year, but it has lagged behind them in the current year. However, what really matters is the cumulative returns over the long run, as volatility tends to smooth out over time. The Portfolio is well-positioned in this regard, delivering strong results on a cumulative basis since inception and returned about 400%, vs ~332% for the SP500TR and ~175% for our most relevant benchmark, the R2000. In addition, you can check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Laughing Water Capital highlighted stocks such as Lifecore Biomedical, Inc. (NASDAQ:LFCR). Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. On January 15, 2026, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $8.10 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was 0.75%, and its shares gained 25.00% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $303.477 million.
Laughing Water Capital stated the following regarding Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its fourth quarter 2025 investor letter:
“Lifecore Biomedical, Inc. (NASDAQ:LFCR) – Lifecore, also discussed above, appreciated ~10% on the year despite fantastic execution toward the only thing that matters: increasing capacity utilization. Importantly for us, it seems as if the necessary elements of earnings power improvement and a re rating are already in place. On slide 11 of the company’s investor presentation, the company lays out a bridge for how they expect to fill their capacity in the years to come. This slide was first presented at the company’s Investor Day in November of 2024, and has not yet been updated. In this bridge, the “New Business” piece for the Mid Term and Long-Term are approximately $11M and $34M respectively. The $34M of Long-Term new business represents approximately 11% of total capacity.
However, on the company’s Q3’25 earnings call, when commenting on a business win from a commercial tech transfer from a large multinational pharmaceutical company, management indicated that they expect that this new customer will be a top 5 customer, and use “material capacity within the facility… between 5% and 10%.” In mid December, the company announced another commercial tech transfer from a different large multinational pharmaceutical company, which was also described as a potential “top 5 customer.” Further, back in August the company announced they won a late-stage GLP-1 product, which they indicated could/should be commercialized by 2029-2030. This product could also conceivably be a top 5 customer.
In sum, these customer wins should allow LifeCore to blow their previous “new business” estimates out of the water, even before considering that they have several other additional wins under their belt…” (Click here to reach the full text)
Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 17 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of the third quarter, up from 15 in the previous quarter. While we acknowledge the risk and potential of Lifecore Biomedical, Inc. (NASDAQ:LFCR) 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 Lifecore Biomedical, Inc. (NASDAQ:LFCR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Lifecore Biomedical, Inc. (NASDAQ:LFCR) and shared Greenhaven Road Capital’s views on the company in the previous quarter. Laughing Water Capital noted in the previous quarter investor letter that Lifecore Biomedical, Inc. (NASDAQ:LFCR) declined 22% in the quarter following investors misinterpreted a routine S‑3 shelf filing as dilution risk. 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.
