| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 17.7% | -4.5% | -4.5% |
Laughing Water Capital returned -4.5% net in Q1 2026 versus -4.3% for the S&P 500, as the fund marked its tenth anniversary with 17.7% annualized returns since inception. Manager Matthew Sweeney has increased portfolio concentration based on higher conviction in several holdings with near-term catalysts. The portfolio has evolved toward shorter timeline special situations with stronger balance sheets and more predictable event paths, moving away from multi-year thesis investments. Key positions include Theravance Biopharma, a biotech royalty stream for sale following failed Phase III trial, and Stride Inc, a virtual school operator recovering from software implementation issues. Sweeney believes small cap stocks may be poised for outperformance after a decade of large cap dominance, noting record valuation spreads despite expected small cap earnings growth. The manager maintains that bearing near-term volatility will reward patient capital as individual company value creation unfolds regardless of macro conditions.
Concentrated small cap value investing focused on special situations with shorter timelines, strong balance sheets, and limited event path risk.
Manager expects the next ten years for Laughing Water Capital can be as successful as the last ten years. Believes bearing immediate term volatility will be worth it for intermediate term reward. Hopeful that a return to small cap prominence will provide significant tailwind over the next 10 years.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 20 2026 | 2026 Q1 | LFCR, LQDA, LRN, NN, PAR, SES.TO, TBPH, VTY.L | Biotechnology, Concentration, small cap, special situations, value | - | Laughing Water Capital's concentrated small cap portfolio has shifted toward shorter timeline special situations with strong balance sheets. Key holdings include biotech royalty plays and recovery stories trading at attractive valuations. After ten years of large cap dominance, manager sees potential reversal favoring small caps given record valuation spreads and expected earnings outperformance. |
| Jan 13 2026 | 2025 Q4 | LFCR, LQDA, NN, PAR, SES.TO, THRY, UTHR, VTY.L, WCN | Biotechnology, contrarian, defense, Factor Investing, small caps, value |
LFCR LQDA NN SES CN VTY LN |
Laughing Water Capital's value-oriented small cap strategy faced factor headwinds in 2025, returning 3.9% versus 17.9% for S&P 500. Manager maintains conviction in fundamental approach despite market preference for size, growth, and momentum. Key positions in biotech, defense spectrum, and waste management show strong operational progress. Expects eventual factor rotation and fundamental recognition to drive outperformance. |
| Oct 16 2025 | 2025 Q3 | CLAR, DISH, LFCR, NN, PAR, T, THRY, VTY.L | concentrated, fundamentals, Patience, Private Market, small caps, undervalued, value |
CLAR US LFCR US NN US PAR US THRY US VTY LN |
Laughing Water Capital's concentrated value strategy underperformed in Q3 despite thesis-validating developments across portfolio companies. Holdings like Clarus, Lifecore, NextNav, PAR, Thryv, and Vistry all showed fundamental progress but were punished by short-term focused markets. Manager increases personal investment, confident that patient capital will be rewarded as earnings power and sentiment improve. |
| Jul 21 2025 | 2025 Q2 | CDMO, CLAR, CTLP, GFL, HUBS, LFCR, NN, PAR, PLYA, SES.TO, THRY, VTY.L, WCN | Biotech, Buybacks, Canada, Oil Services, small caps, value, Waste management |
CLAR SES CN LFCR NN PAR VTY LN THRY CLAR SES.TO LFCR NN PAR VTY.L |
Laughing Water delivered 13.1% in Q2 despite tariff noise, adding Clarus and SECURE at attractive valuations. The quantitative-dominated market creates opportunities in transitioning businesses that screen poorly but offer fundamental value. Recent buyouts validate the strategy while small cap discount provides future tailwind. Focus remains on aligned management teams executing during uncertainty. |
| Apr 24 2025 | 2025 Q1 | CTLP, HGV, LFCR, NN, PAR, PLYA, THRY, VTY.L, XPOF | Biotechnology, Buybacks, Resilience, small caps, software, Spectrum, tariffs, value |
XPOF CDMO LFCR NN VTY.L PAR |
Laughing Water Capital's -13% Q1 return was driven by NextNav weakness despite positive regulatory progress on spectrum monetization. Manager views Trump tariff uncertainty as largely posturing, maintains double-digit cash position while selectively adding to recession-resilient holdings in biotechnology CDMOs, enterprise software, and wireless spectrum. Portfolio positioned for earnings power growth over intermediate term despite near-term macro noise. |
| Jan 16 2025 | 2024 Q4 | CDMO, CTLP, HUBS, LFCR, NN, PAR, THRY, TTAN, VTY.L, VZ | Biotech, Concentration, small caps, software, Spectrum, technology, value | - | Laughing Water Capital's concentrated small-cap strategy delivered 39.5% returns in 2024, driven by five key positions including spectrum play NextNav and CDMO Lifecore Biomedical. The manager sees rich opportunities ahead in off-the-beaten-path equities, with underperforming holdings executing well and positioned for recognition as temporary issues resolve. Strong alignment with permanent capital structure supports patient value realization. |
| Jul 17 2022 | 2024 Q2 | APG, CDMO, CTLP, ERIC, HALO, HGV, LFCR, LMB, NN, THRY, VTY.L, XPOF | Biotechnology, contrarian, Franchising, momentum, quantitative, small caps, value |
CTLP XPOF |
Laughing Water Capital delivered 11.1% year-to-date returns through contrarian small cap investing during a period when the strategy is deeply out of favor. The manager targets businesses trading at single digit free cash flow multiples with temporary problems, adding Cantaloupe and Xponential Fitness while maintaining conviction in CDMO holdings positioned for earnings inflection points. |
| May 3 2024 | 2024 Q1 | CDMO, CTLT, HALO, LFCR, NN, NVDA, PAR, TACT, THRY | Biotechnology, Capacity, CDMO, long-term, Manufacturing, small caps, value | - | Small cap value fund with concentrated CDMO exposure betting on industry consolidation and capacity utilization. Portfolio companies trading below intrinsic value due to temporary transitions, positioned for earnings growth and multiple expansion. Manager sees opportunity in record small cap discount while large caps become overextended safety trade. |
| Jan 25 2024 | 2023 Q4 | ALC, APG, BVH, CDMO, DGX, ENZ, HGV, LFCR, LH, LMB, NN, RCL, THRY, VNDA, VTY.L, VZ | Buybacks, concentrated, long-term, small caps, value | ANNX | Laughing Water Capital's concentrated small-cap value strategy delivered 11.8% returns in 2023 despite trailing large-cap indices. Manager sees significant opportunity as portfolio companies demonstrated strong fundamental improvements without corresponding stock price appreciation. Holdings like Thryv, HGV, and new position Nextnav offer compelling risk-adjusted returns as short-term headwinds resolve and normalized earnings power emerges. |
| Oct 19 2023 | 2023 Q3 | APLS, CDMO, HGV, LFCR, THRY | Biotechnology, Cloud, Macro, small caps, value, volatility |
CDMO THRY |
Laughing Water Capital's Q3 decline reflects macro-driven market volatility rather than fundamental deterioration in portfolio companies. The manager sees compelling value in small caps trading at Financial Crisis-level multiples, particularly in holdings like Avid Bioservices and Thryv that offer clear paths to earnings power improvement despite near-term uncertainty around timing. |
| Jul 17 2023 | 2023 Q2 | APG, CDMO, CTLT, DGX, ENZ, HGV, LFCR, LH, NVR, TACT, THRY, VTY.L | Biotech, Buybacks, Homebuilders, small caps, software, value | - | Small cap value fund outperforming major indices by focusing on undervalued businesses with solvable operational problems while mega-cap tech dominates markets. Portfolio companies executing buybacks and improving fundamentals despite macro headwinds. Manager sees exceptional opportunity set in small caps left behind by AI mania, positioned for eventual market breadth expansion. |
| Oct 5 2023 | 2023 Q1 | BAX, CDMO, LFCR, SCTL, WST | Biotechnology, CDMO, distressed, M&A, small cap, value | - | Small-cap value manager substantially increased position in distressed CDMO Lifecore Biomedical after 66% decline from loan covenant default. Views this as balance sheet problem, not business problem, with secular biologics tailwinds intact. Expects strategic sale at premium multiple given asset scarcity and Morgan Stanley advisory process, targeting 5x upside potential. |
| Jan 31 2023 | 2022 Q4 | AIM CN, APG, CDMO, HGV, LDE GR, THRY, VTY LN | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
BiotechnologyManager has significant exposure to biotech through Theravance Biopharma and Liquidia Corp. Theravance represents a special situation following failed Phase III trial, now essentially a royalty stream for sale. Liquidia continues strong drug launch performance despite ongoing patent litigation. |
Biotech Royalties Patent FDA Drug Launch |
Special SituationsPortfolio increasingly focused on shorter timeline special situations with limited event path risk. Examples include Theravance's strategic review process and SECURE's acquisition by GFL Environmental. Manager emphasizes rock solid balance sheets and near-term cash flows. |
Activism M&A Strategic Review Event Driven | |
Small CapsManager notes small cap stocks have been out of favor during fund's first ten years while large caps dominated. Believes historical relationship may be reversing, with small cap valuations at record spreads to large caps despite expected earnings outperformance. |
Small Cap Valuations Outperformance Spreads | |
Education SoftwareNew position in Stride Inc, the largest K-12 virtual school operator. Company faced software implementation issues causing enrollment problems and 50% stock decline. Manager believes problems are fixable and shares will re-rate as fixes take hold. |
Virtual Schools Software Enrollment Recovery | |
| 2025 Q4 |
AIManager believes market's assessment of AI risk differs from their own, with approximately 60% of underperformance attributed to positions where AI impact concerns drove stock declines. Portfolio companies deemed AI-losers declined 15% despite 10% revenue growth and 15% EPS growth, representing valuation compression rather than fundamental deterioration. |
Artificial Intelligence Disruption Valuation Technology Software |
QualityFund exclusively invests in businesses with superior characteristics including high barriers to entry, sustainable competitive advantages, and durable growth prospects. Manager emphasizes that Earnings Quality factor performance was in 100th percentile, demonstrating the portfolio's high-quality nature despite recent underperformance. |
Quality Investing Competitive Advantages Earnings Quality Sustainable Growth | |
Small CapsStrategy of owning competitively advantaged small and medium-sized businesses remained out of favor for most of the quarter. Fund focuses on businesses that were small-cap at time of purchase and have grown through stock appreciation, with weighted average holding period of 18.6 years. |
Small Cap Growth Long Term Compounding | |
| 2025 Q3 |
ValueManager focuses on businesses trading below private market value with clear catalysts for value realization. Multiple portfolio companies are undergoing strategic reviews or have management incentivized to maximize shareholder value through potential sales. |
Private Market Value Strategic Review Undervalued Value Realization Asset Sales |
BiotechnologyPortfolio includes fill-finish CDMO Lifecore with excess capacity in high-demand industry. FDA prioritizing domestically manufactured drugs and potential tariffs on foreign production create favorable regulatory tailwinds for domestic capacity. |
CDMO Fill-Finish Domestic Manufacturing FDA Priority Operating Leverage | |
Enterprise SoftwareHoldings include PAR Technology for restaurant software and Thryv for small business software. Both companies serve markets transitioning from manual processes to software-driven operations with strong recurring revenue models. |
Restaurant Software Small Business SaaS Digital Transformation Recurring Revenue | |
HomebuildersVistry Group is the largest affordable housing provider in the UK by a factor of 5. New £39B government funding program over ten years creates significant growth opportunity in capital-light partnerships model. |
Affordable Housing UK Housing Government Funding Partnerships Model Housing Shortage | |
DefenseNextNav provides wireless spectrum and alternative GPS capabilities that address critical national security needs. FCC Chairman has highlighted the urgent need for terrestrial GPS backup systems. |
GPS Backup National Security Wireless Spectrum FCC Approval Critical Infrastructure | |
| 2025 Q2 |
Waste ManagementSECURE Waste Infrastructure represents a transformation from cyclical oil services to recurring waste management with 80% of cash flows now recurring versus 60% previously cyclical. The company benefits from regulatory moats, geographic advantages, and stable demand from Western Canadian oil production. Management is aggressively repurchasing shares at attractive valuations. |
Waste Management Oil Services Recurring Revenue Western Canada Share Buybacks |
BuybacksMultiple portfolio companies are executing aggressive share repurchase programs. SECURE repurchased 19% of shares in 2024 and continues aggressive buybacks in 2025. Management teams are properly incentivized to shrink share counts when trading below intrinsic value, creating value for remaining shareholders through capital allocation discipline. |
Share Repurchases Capital Allocation Management Incentives Value Creation Float Reduction | |
ValueThe strategy focuses on identifying good businesses led by properly incentivized people during periods of uncertainty when attractive purchase prices emerge. Recent buyouts of portfolio companies at significant premiums validate the approach of buying undervalued assets that eventually get recognized by public or private markets. |
Undervalued Assets Uncertainty Management Quality Private Market Recognition Intrinsic Value | |
Small CapsSmall cap stocks remain approximately 30% cheaper than their larger peers, creating a persistent headwind that should eventually become a tailwind based on historical patterns. The portfolio benefits from this valuation discount while waiting for mean reversion in relative valuations. |
Small Cap Discount Relative Valuation Mean Reversion Historical Patterns Valuation Gap | |
| 2025 Q1 |
Trade PolicyManager discusses Trump administration's tariff plans and their potential economic impact, noting uncertainty around implementation and suggesting much may be posturing. Believes Trump will likely declare victory on tariffs with minimal actual changes to avoid losing midterm elections. |
Tariffs Trump Policy Uncertainty Negotiation |
BiotechnologyPortfolio includes multiple biotech-related investments including Lifecore Biomedical (fill-finish CDMO) and previously owned Avid Bioservices (acquired by private equity). Manager sees strong demand acceleration in pharmaceutical manufacturing and expects significant operating leverage as capacity utilization improves. |
CDMO Pharmaceuticals Capacity Operating Leverage Demand | |
Enterprise SoftwareHoldings include PAR Technology (restaurant software with 20% organic growth expected) and Thryv (SMB software achieving rule of 40 status). Manager sees strong tailwinds from digital transformation, particularly as baby boomer business owners retire and next generation embraces software solutions. |
SaaS Digital Transformation SMB Restaurant Growth | |
Wireless TelecomNextNav represents largest position focused on next-generation GPS and wireless spectrum. Recent positive regulatory developments with FCC Chairman Carr's support for GPS alternatives and 911 improvements. Company refinanced debt and added strategic investors including Michael Milken's family office. |
GPS Spectrum FCC Regulation Infrastructure | |
| 2024 Q4 |
Wireless TelecomNextNav represents a next-generation GPS and wireless spectrum investment with significant upside potential. The company is awaiting FCC approval for its petition to update 900 MHz spectrum band rules, which would enable terrestrial GPS and 5G spectrum creation. Recent valuation markers suggest the spectrum could be worth approximately $40 per share if approved. |
Spectrum GPS FCC 5G Terrestrial |
CRO & CDMOLifecore Biomedical is positioned as the last remaining small public CDMO focused on injectable drugs. Under new management, the company is targeting $300M annual revenue with tremendous operating leverage on fixed costs. Management internally believes there is an 80% chance of a change of control event by 2028, with comparable transaction multiples suggesting over 100% upside potential. |
Injectable Manufacturing Biomedical Leverage Acquisition | |
Enterprise SoftwarePAR Technology continues its evolution toward being the best-in-class technology partner for enterprise scale restaurants. Following the sale of its Defense business, PAR is now a pure play with expectations for continued 25% growth while operating expenses have remained flat for two years, creating substantial free cash flow potential. |
Restaurant Technology Software Growth Cashflow | |
HomebuildersVistry Group is transitioning from traditional homebuilding to an asset-light Partnerships model. Despite recent accounting issues and credibility damage, shares trade below tangible book value while historically UK homebuilders traded at 1.5x book value. The company expects finite legacy business problems to resolve by 2026. |
UK Partnerships Transition Valuation Recovery | |
Small CapsThe manager focuses on smaller, off-the-beaten-path equities where the opportunity set remains rich. The portfolio typically owns around 15 stocks, with success coming from concentrated positions in businesses dealing with temporary problems that are not readily apparent to the market. |
Concentration Mispriced Temporary Opportunity Undervalued | |
| 2024 Q2 |
ValueManager focuses on contrarian investing in businesses trading at single digit multiples of free cash flow, believing good businesses led by incentivized people will not trade at these levels forever. The strategy targets hidden corners of the market with optical, operational, or structural problems that are likely temporary. |
Contrarian Free Cash Flow Multiples Hidden Value Undervalued |
Small CapsPortfolio concentrated in small cap stocks that are wildly out of favor. Manager notes small caps have not been this undervalued relative to large caps since the dot-com bubble, with the R2000 having its worst first half relative to the SP500 in history. |
R2000 Undervalued Out of Favor Relative Performance Dot-com | |
CRO & CDMOTwo Contract Drug Manufacturing Organizations in portfolio tied to biologic drugs. Avid Bioservices has newly added capacity not yet generating revenue but favorable industry dynamics and competitive advantages. Lifecore focuses on filling vials and syringes with injectable drugs, benefiting from GLP-1 demand explosion. |
Biologics Capacity FDA GLP-1 Biotech | |
FitnessXponential Fitness is a franchisor of boutique fitness concepts including Club Pilates and Pure Barre. The business model benefits from guaranteed future growth as global licenses sold far exceed currently open studios, providing cushion during economic downturns. |
Franchising Boutique Licenses Studios Growth | |
| 2024 Q1 |
CRO & CDMOLarge portion of portfolio invested in Contract Drug Manufacturing Organizations focused on biologics. Both Lifecore and Avid positioned to benefit from industry consolidation as Catalent is acquired by Novo Holdings and Chinese CDMOs face regulatory restrictions. Companies have available capacity during industry shortage and should benefit from tremendous operating leverage as capacity fills. |
Biologics Manufacturing Capacity FDA Biosecure |
BiotechnologyCDMO investments tied to biologic pharmaceutical development where more than half of drugs in development are large molecule. Industry benefits from recession-resistant late-stage business and extremely sticky customer relationships due to FDA review requirements for manufacturer changes. |
Large Molecule Drug Development FDA Approval Sticky Customers | |
Small CapsPortfolio focused on small cap investments trading at attractive valuations while large caps have become the flight to safety trade. Manager notes small caps outperformed in 1970s inflationary environment and believes current spread between large and small caps is at record levels, creating opportunity for pendulum to swing. |
Valuation Multiple Expansion Flight to Safety Record Spreads | |
ValueInvestments in businesses going through transitions that prevent true economics from being reflected in trailing GAAP earnings. Portfolio companies not operating at full power by design, available at attractive prices with expectation of dual forces of earnings growth and multiple expansion over time. |
Intrinsic Value Earnings Power Transition GAAP Earnings | |
| 2023 Q4 |
Small CapsManager focuses on small and very small cap stocks despite recent underperformance. Notes that small caps have significantly underperformed large caps, with micro cap ETF returning only 8% in 2023. Believes this creates opportunity as small caps are only 4% expensive vs 20-year average while large caps are 88% expensive. |
Small Cap Micro Cap Valuation Outperformance |
ValueManager emphasizes buying businesses at attractive valuations relative to normalized future earnings power. Focuses on identifying companies where market has not recognized fundamental improvements due to short-term concerns. Believes current holdings are very cheap and will rapidly make up for lost returns. |
Valuation Normalized Earnings Fundamental Value | |
BuybacksMultiple portfolio companies engaged in aggressive share repurchase programs. Vistry aims to return 1 billion GBP over three years, HGV targets $100M per quarter in buybacks (9% of company annually). Manager views buybacks as key driver of long-term compounding returns. |
Share Repurchases Capital Return Compounding | |
| 2023 Q3 |
BiotechnologyManager discusses Avid Bioservices as a biologic contract drug manufacturer facing near-term headwinds from biotech spending slowdown but positioned to benefit from favorable industry dynamics including patent cliff, outsourcing trends, and supply-demand imbalance. Expects significant cash flow generation as new capacity gets filled over 4-5 years. |
CDMO Biologics Outsourcing Capacity Patent Cliff |
CloudThryv represents the global trend of small and medium businesses moving operations from manual systems to cloud-based software. Manager sees this as inevitable modernization with Thryv having competitive advantages through low customer acquisition costs and superior product offering at attractive pricing. |
SMB Software Modernization SaaS Digital Transformation Referrals | |
Small CapsManager notes small caps are trending toward third consecutive year of underperformance versus large caps, representing the worst three-year stretch since tech bubble. P/E multiples have compressed to Financial Crisis levels, creating attractive opportunities for patient investors. |
Underperformance Valuation Compression Opportunity R2000 | |
| 2023 Q2 |
Small CapsManager believes small cap stocks have been left behind by a market focused on mega-cap tech and AI exposure, creating an attractive opportunity set. The fund does not own any mega-cap tech stocks and has benefited from focusing on individual small businesses with idiosyncratic problems that management teams can solve over 3-5 years. |
Small Cap Value Opportunity |
BuybacksMultiple portfolio companies are executing or planning aggressive share repurchase programs. HGV authorized a new $500M repurchase plan, and Vistry is expected to move toward aggressive share repurchases following a capital allocation review and the addition of a board member from NVR, a company known for combining high returns with share buybacks. |
Share Repurchases Capital Allocation Value Creation | |
CRO & CDMOThe fund owns two contract development and manufacturing organizations (CDMOs) - Avid Bioservices and Lifecore Biomedical. Despite near-term headwinds from reduced early-stage biotech spending, the manager sees long-term value from capacity shortages in the industry and CDMO's track record with late-stage projects that can quickly move to commercial production. |
Contract Manufacturing Biotech Capacity | |
| 2023 Q1 |
CRO & CDMOManager has significant exposure to the CDMO space through both Lifecore Biomedical and Avid Bioservices, viewing the sector as benefiting from massive secular tailwinds including the growth of biologics from 43% of US pharma sales to 55% of drugs in development. The CDMO business model offers high normalized margins, low normalized capex, high switching costs, and predictable long-term cash flows despite quarterly lumpiness. |
Biologics Fill-finish Manufacturing Outsourcing Pharmaceuticals |
BiotechnologyThe manager emphasizes the explosive growth in biologic drugs, noting that 55% of all drugs in development are now biologics compared to just 43% of current US pharmaceutical sales being biologics. This structural shift creates sustained demand for specialized manufacturing capabilities, particularly for injectable biologics and prefilled syringes which are growing faster than the broader injectables market. |
Biologics Drug Development Injectables Pharmaceuticals | |
DistressedManager significantly increased position in Lifecore Biomedical after a 66% single-day decline due to technical default on loan covenants. Views this as a balance sheet problem rather than business problem, with equity recovery likely even in bankruptcy scenarios. The distressed situation creates asymmetric risk-reward with potential 5x upside despite the technical default. |
Bankruptcy Covenant Default Balance Sheet Restructuring | |
Biopharma M&AManager expects strong M&A activity for high-quality CDMO assets, citing recent transactions at premium multiples including potential 20x EBITDA valuations. Notes that Lifecore has hired Morgan Stanley for strategic review and believes the company will attract multiple bidders given the scarcity of specialized fill-finish assets and 3-4 year replacement timeline. |
M&A Strategic Review Valuations CDMO |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 13, 2026 | Fund Letters | Matthew Sweeney | VTY LN | Vistry Group PLC | Consumer Discretionary | Homebuilding | Bull | New York Stock Exchange | buybacks, homebuilding, Housing, recovery, valuation | Login |
| Jan 13, 2026 | Fund Letters | Matthew Sweeney | LFCR | Lifecore Biomedical, Inc. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Capacity, CDMO, Injectables, Margins, Utilization | Login |
| Jan 13, 2026 | Fund Letters | Matthew Sweeney | LQDA | Liquidia Corporation | Health Care | Biotechnology | Bull | NASDAQ | Adoption, Approvals, Biotech, litigation, Pah | Login |
| Jan 13, 2026 | Fund Letters | Matthew Sweeney | NN | NextNav Inc. | Communication Services | Wireless Telecommunications | Bull | NASDAQ | Gps, Nationalsecurity, Optionality, Regulation, Spectrum | Login |
| Jan 13, 2026 | Fund Letters | Matthew Sweeney | SES CN | Secure Waste Infrastructure Corp. | Industrials | Environmental Services | Bull | New York Stock Exchange | buybacks, cashflow, energy, mispricing, waste | Login |
| Oct 16, 2025 | Fund Letters | Matthew Sweeney | NN US | NextNav, Inc. | Information Technology | Telecommunications | Bull | NASDAQ | 5G, Fcc, Gps, growth, Regulation, Spectrum, Telecom, U.s. | Login |
| Oct 16, 2025 | Fund Letters | Matthew Sweeney | PAR US | PAR Technology Corp. | Information Technology | Application Software | Bull | NYSE | enterprise, growth, Margins, pipeline, Restaurants, SaaS, Software | Login |
| Oct 16, 2025 | Fund Letters | Matthew Sweeney | THRY US | Thryv Holdings, Inc. | Communication Services | Application Software | Bull | NASDAQ | growth, Margins, SaaS, SMB, Software, turnaround, valuation | Login |
| Oct 16, 2025 | Fund Letters | Matthew Sweeney | VTY LN | Vistry Group plc | Consumer Discretionary | Homebuilding | Bull | NYSE | Affordable, construction, growth, Housing, insider buying, Policy, UK, valuation | Login |
| Oct 16, 2025 | Fund Letters | Matthew Sweeney | CLAR US | Clarus Corporation | Consumer Discretionary | Sporting Goods | Bull | NASDAQ | Insiders, M&A, Margins, retail, Sporting goods, turnaround, Value | Login |
| Oct 16, 2025 | Fund Letters | Matthew Sweeney | LFCR US | Lifecore Biomedical, Inc. | Health Care | Biotechnology & Life Sciences Tools | Bull | NASDAQ | Biotech, CDMO, GLP-1, growth, manufacturing, pharma, Regulation, U.s. | Login |
| Jul 21, 2025 | Fund Letters | Matthew Sweeney | LFCR | Lifecore Biomedical Inc. | Health Care | Pharmaceuticals | Bull | NASDAQ | acquisition, CDMO, Injectables, Reshoring, tariffs | Login |
| Jul 21, 2025 | Fund Letters | Matthew Sweeney | NN | NextNav Inc. | Information Technology | Communications Equipment | Bull | NASDAQ | Gps, Nationalsecurity, Optionality, Regulation, Spectrum | Login |
| Jul 21, 2025 | Fund Letters | Matthew Sweeney | PAR | PAR Technology Corp. | Information Technology | Application Software | Bull | New York Stock Exchange | Operatingleverage, pipeline, POS, Restaurants, SaaS | Login |
| Jul 21, 2025 | Fund Letters | Matthew Sweeney | VTY LN | Vistry Group PLC | Consumer Discretionary | Homebuilding | Bull | New York Stock Exchange | Bookvalue, Grants, Housing, Partnerships, recovery | Login |
| Jul 21, 2025 | Fund Letters | Matthew Sweeney | THRY | Thryv Holdings Inc. | Information Technology | Application Software | Bull | NASDAQ | Optimism, SaaS, SMB, Transition, valuation | Login |
| Jul 21, 2025 | Fund Letters | Matthew Sweeney | CLAR | Clarus Corp. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | brands, Options, Outdoor, restructuring, sale | Login |
| Jul 21, 2025 | Fund Letters | Matthew Sweeney | SES CN | SECURE Waste Infrastructure Corp. | Industrials | Environmental & Facilities Services | Bull | Toronto Stock Exchange | buybacks, infrastructure, Margins, rerating, waste | Login |
| Jul 16, 2025 | Fund Letters | Laughing Water Capital | NN | NextNav Inc. | Communication Services | Wireless Telecommunication Services | Bull | NASDAQ | 5G, Fcc, Gps, Mobile Networks, national security, regulatory catalyst, Spectrum | Login |
| Jul 16, 2025 | Fund Letters | Laughing Water Capital | CLAR | Clarus Corp. | Consumer Discretionary | Leisure Products | Bull | NASDAQ | Asset Sale, brand value, Chairman Alignment, Consumer products, Outdoor Gear, turnaround, Value | Login |
| Jul 16, 2025 | Fund Letters | Laughing Water Capital | VTY.L | Vistry Group PLC | Consumer Discretionary | Homebuilding | Bull | LSE | affordable housing, asset-light, Discount to book, government funding, recovery, UK housing | Login |
| Jul 16, 2025 | Fund Letters | Laughing Water Capital | LFCR | Lifecore Biomedical Inc. | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Biosecure Act, Biotech, CDMO, Fill-Finish, M&A Target, Re-shoring, tariffs | Login |
| Jul 16, 2025 | Fund Letters | Laughing Water Capital | SES.TO | SECURE Waste Infrastructure Corp | Industrials | Environmental & Facilities Services | Bull | TSX | Canada, EBITDA margins, multiple expansion, Oil Services, recurring revenue, Share Buybacks, waste management | Login |
| Jul 16, 2025 | Fund Letters | Laughing Water Capital | PAR | PAR Technology Corp | Information Technology | Technology Hardware, Storage & Peripherals | Bull | NYSE | Burger King, M&A, Multi-product, Pipeline Growth, Restaurant technology, SaaS | Login |
| Apr 16, 2025 | Fund Letters | Laughing Water Capital | NN | NextNav Inc | Communication Services | Wireless Telecommunication Services | Bull | NASDAQ | 900 MHz, 911 System, FCC Rulemaking, GPS alternative, national security, regulatory catalyst, Wireless Spectrum | Login |
| Apr 16, 2025 | Fund Letters | Laughing Water Capital | VTY.L | Vistry Group PLC | Consumer Discretionary | Homebuilding | Bull | LSE | affordable housing, asset-light, government investment, insider buying, Partnerships Business, turnaround, UK Homebuilder | Login |
| Apr 16, 2025 | Fund Letters | Laughing Water Capital | CDMO | Avid Bioservices | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Bioprocessing, Capacity utilization, CDMO, NOLs, operating leverage, Pharmaceutical, Private Equity Buyout | Login |
| Apr 16, 2025 | Fund Letters | Laughing Water Capital | PAR | PAR Technology Corp | Information Technology | Application Software | Bull | NYSE | ARR growth, M&A Pipeline, operating leverage, Point of Sale, restaurant software, SaaS, TAM expansion | Login |
| Apr 16, 2025 | Fund Letters | Laughing Water Capital | LFCR | Lifecore Biomedical Inc | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Capacity utilization, CDMO, Fill-Finish, operating leverage, sale process, Tariff Beneficiary, turnaround | Login |
| Apr 16, 2025 | Fund Letters | Laughing Water Capital | XPOF | Xponential Fitness | Consumer Discretionary | Leisure Facilities | Bull | NASDAQ | Boutique Fitness, Club Pilates, franchise development, Franchisor, Management Transition, Regulatory Overhang, Sum-of-parts | Login |
| Jul 1, 2024 | Fund Letters | Laughing Water Capital | XPOF | Xponential Fitness | Consumer Discretionary | Leisure Facilities | Bull | NYSE | Boutique, contrarian, EBITDA multiple, Fitness, franchise, growth, Short squeeze, turnaround, Value | Login |
| Jul 1, 2024 | Fund Letters | Laughing Water Capital | CTLP | Cantaloupe Inc. | Information Technology | Application Software | Bull | NASDAQ | EBITDA growth, operating leverage, Payments, recurring revenue, Self-Service Retail, Software, Technology Solutions, Value, Vending | Login |
| Jan 1, 2024 | Fund Letters | Laughing Water Capital | ANNX | Nextnav Inc. | Communication Services | Wireless Telecommunication Services | Bull | NASDAQ | 5G, broadband, Fcc, Gps, infrastructure, SPAC, Spectrum, telecommunications, Value, Wireless | Login |
| Oct 1, 2023 | Fund Letters | Laughing Water Capital | CDMO | Avid Bioservices | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Biologic Manufacturing, Biosimilars, biotechnology, capacity expansion, CDMO, contract manufacturing, Free Cash Flow, operating leverage, Outsourcing, Patent cliff, pharmaceuticals | Login |
| Oct 1, 2023 | Fund Letters | Laughing Water Capital | THRY | Thryv Inc. | Information Technology | Application Software | Bull | NASDAQ | cloud migration, Customer Acquisition, Digital transformation, operating leverage, recurring revenue, Referral Business, SaaS, small business, SMB software, Yellow Pages | Login |
| TICKER | COMMENTARY |
|---|---|
| LRN | Stride entered our portfolio as a mid-sized position. The company is the largest operator of virtual schools for grades K-12 in the U.S., serving more than 240,000 students across 30 states. The company had been growing at mid to low teens percent for several years and traded at ~14x EBIT when they guided to 10-15% growth in enrollment for fiscal '26. However, prior to the 2025-2026 school year the company attempted to upgrade the software that governs their enrollment process as well as their learning management software. The implementation did not go smoothly, and in late October of 2025 management announced they would be cutting guidance. This cost the company upwards of 10,000 enrollments and led to a more than 50% decline in share price, where we began to buy stock. At present, the company is valued below 7.5x EBIT, which seems to imply either 1) that the company will not be able to fix their software or 2) that the market does not have the patience to wait for the company to fix their software. I am of the view that given enough time, the problems will be fixed, and in fact early indications from both the company and various open market sources are that the company is well on its way down this path. |
| TBPH | Following a failed Phase III FDA trial the company is a pile of cash and similar attached to a royalty stream that should generate ~$65M per year for the Company, as well as $2.6B in tax assets. The company has announced that they have accelerated the work of a strategic review committee, essentially saying that the royalty stream is for sale. We bought our shares below $14, and in my view, the downside protection and range of upside outcomes is such that we should go for the end zone in terms of position sizing. Theravance is thus a top 5 position for us. I expect this situation to resolve itself within the next 0-6 months. |
| NN | I have written about Nextnav, our wireless spectrum / 5G terrestrial backup to GPS investment, several times in the past. This investment remains an outsized position, and it remains subject to wild swings every month around the timing of the release of each month's Federal Communications Commission (FCC) agenda. In my view, the investment has been largely de-risked as the FCC submitted a draft Notice of Proposed Rule Making (NPRM) to the White House Office of Information and Regulatory Affairs (OIRA). The timing here has admittedly stretched a few months longer than I hoped for, but I think we are almost there, and I expect to see an NPRM shortly. Recent transactions suggest something north of $50 (vs. month end price of ~$15) is well within range. |
| LQDA | Liquidia is our maker of a drug called YUTREPIA that combats Pulmonary Arterial Hypertension (PAH) and Pulmonary Hypertension Interstitial Lung Disease (PH-ILD). The sales launch of this drug continues to exceed all expectations, and the stock has appreciated nicely. However, I believe shares would be much higher if not for an on-going patent battle with United Therapeutics (UTHR). My work around the opinions of legal experts and past rulings in similar cases by this judge suggest a favorable outcome is on the way. If the ruling is favorable and the launch of YUTREPIA continues unimpeded, even a material slow down in the rate of adoption since inception could lead to a revenue run rate north of $1.2B by the end of the year. |
| SES.TO | SECURE was introduced in our 1H'25 letter as a business that had transitioned from oil services to waste services tied to the Canadian oil industry. We purchased our shares just after an undersubscribed tender offer was completed for around C$14.50. As I was about to hit send on this letter, news surfaced that GFL Environmental Inc. (GFL), a Canadian-American waste player that is ~6x larger than SECURE, would be purchasing SECURE for C$24.75 per share in a stock and cash deal. My initial reaction is to not be thrilled with this price. |
| LFCR | Lifecore, our fill finish CDMO that puts drugs into syringes and vials, continues to win new business at an impressive rate. However, the time from winning new business to generating meaningful cash flows from that business is measured in years in the CDMO world. Additionally, Lifecore recently announced that much of their pipeline is moving to the right as customer timing has shifted. As a result, the stock has been severely punished. In my view, the gap between the public market value of LFCR stock and the private market value of Lifecore's assets has never been wider. |
| PAR | PAR was our restaurant software business. I continue to believe that PAR will win their category, but I was never completely comfortable with valuation, which for PAR and other software companies has been measured as a multiple of annual recurring revenue, or ARR over the last several years. This concept has gone out of favor due to the rise of AI, and it is not clear to me when it will come back in favor. I believe that PAR will win their category, but it will be some time before customer wins translate into real earnings, and with ARR out of favor the downside protection to me in this investment was not clear. I exited our position prior to PAR raising a new convert at significantly lower conversion prices than the previous instrument. |
| VTY.L | Vistry was our UK homebuilder that was transitioning away from traditional home building and toward an asset light partnerships model focused on low-income housing. A year ago Vistry announced they had found accounting missteps tied to their legacy business, which led to a selloff in the shares. Nevertheless, I did not sell at that time because the key elements of the thesis were that Vistry had best in class management and would be returning a lot of capital to shareholders via share repurchases. However, on their most recent earnings call Vistry announced that CEO Greg Fitzgerald would be retiring, and that they will continue to consider future buybacks. Clearly, these developments impaired the thesis. |
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