| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 20.3% | 17.1% |
Minot Light Capital Appreciation Fund returned 20.3% net in Q2 2026, bringing year-to-date net returns to 17.1% and cumulative returns since October 2024 inception to 40.9% net. The fund focuses on small and micro-cap companies with sustainable business models, strong balance sheets, and profitability, maintaining a diversified portfolio of approximately 60 holdings with minimal leverage. The managers emphasize risk-adjusted returns, demonstrating a beta of 0.91 and favorable upside/downside capture ratios relative to the Russell 2000. The portfolio has a contrarian anti-momentum bias, avoiding speculative sectors like semiconductors and AI infrastructure while capitalizing on market inefficiencies. Key themes include busted non-tech IPOs where high-quality companies fall after listing due to short-term hedge fund allocations, senior care operators positioned for a multi-year upcycle as baby boomers age, and illiquid micro-caps transitioning to institutional small-cap status through mergers or uplisting. Featured holdings include Sonida Senior Living, Xtract One Technologies, and Rockwell Medical. The managers believe their contrarian positioning will benefit as momentum trends moderate, expressing strong optimism about future performance potential as their process continues to improve.
Minot Light Capital focuses on small and micro-cap companies with sustainable business models, profitability, and strong balance sheets, emphasizing risk-adjusted returns and downside protection while capitalizing on market inefficiencies such as busted IPOs and illiquid micro-caps transitioning to institutional small-cap status.
The managers are quite excited about prospects for the remainder of 2026 and beyond, believing their contrarian positioning should perform well as momentum trends moderate or reverse. They continue to believe their process is improving every single day, which further strengthens their optimism about the partnership's future performance potential. They expect there will come a time when market conditions lead Minot Light to become heavily overweight emerging technology stocks while finding fewer compelling opportunities elsewhere, as these things always cycle.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 15 2026 | 2026 Q2 | BOBS, CHWY, CYRX, EVLV, HTFL, ICCC, KRUS, LGCY, MOBI, MXCT, OFRM, OM, RMTI, SNDA, SOPH, SUJA, SWAG, TDUP, TOST, XTRAF | downside protection, growth, IPOs, Microcap, risk management, Senior Care, small caps, value |
SNDA XTRAF RMTI |
Minot Light returned 20.3% net in Q2 2026, demonstrating strong risk-adjusted performance through contrarian positioning in small and micro-cap companies with sustainable business models. The fund is capitalizing on busted IPOs, senior care demographics, and illiquid micro-caps transitioning to institutional status while avoiding speculative AI and semiconductor momentum. Managers expect their anti-momentum positioning to benefit as current trends moderate, with optimism about future performance. |
| Apr 29 2026 | 2026 Q1 | BOBS, FARM, HTLD, ICCC, IDXX, KIDS, LGCY, MCW, MMM, MXCT, NEOG, NRXS, OLPX, OM, OWLT, RAVE, TDUP | consumer, growth, healthcare, Micro-Cap, small caps, value, volatility |
BOBS ICCC |
Minot Light delivered -2.7% in Q1 2026 amid macro volatility and adverse sector rotation away from healthcare and consumer discretionary holdings. Despite near-term headwinds, managers express increased confidence in their small/micro-cap strategy, highlighting strong fundamentals in names like Bob's Discount Furniture and ImmuCell. They expect sector rotations to eventually mean-revert, creating strong tailwinds for current out-of-favor positions. |
| Jan 18 2026 | 2025 Q4 | ARQ, CBLL, CLPT, CURV, KRMD, LAKE, LUCD, MAMA, MRVI, NEOG, OM, OWLT, REAL, RXST, RZLT, SWAG, XOMA | Biotech, growth, momentum, Process, small caps, value, volatility |
XOMA RZLT ARQ OM |
Minot Light delivered solid 2025 returns while navigating unprecedented small-cap volatility. The managers embrace market inefficiencies created by momentum-driven trading, believing fundamental analysis provides significant alpha opportunities. They strengthened their process around downside protection and position sizing, positioning to capitalize on violent stock dislocations while building larger positions in de-risking growth stories. |
| Oct 19 2025 | 2025 Q3 | ARQ, CLPT, CURV, LGCY, LUCD, PAVM, QURE, REAL, SWAG | Beta-sliding, growth, healthcare, Micro-Cap, small caps, value |
REAL CLPT ARQ CURV LUCD SWAG |
Minot Light posted 7.6% net returns in Q3 but lagged benchmarks due to healthcare sector positioning in a momentum market. The fund is beta-sliding into undervalued opportunities while trimming winners near fair value. Strong gross performance since inception validates the process, with managers confident in long-term alpha generation despite near-term relative underperformance in small/micro-cap inefficiencies. |
| Jul 31 2025 | 2025 Q2 | ACOG, APG, ARQ, CURV, CWAN, CYRX, DERM, LAKE, LGCY, LMB, LQDT, MCW, NEOG, NPKI, OM, REAL, RXST, TDUP, TTGT, XPOF | alpha, dislocations, growth, liquidity, Microcap, small caps, value |
TDUP LGCY OM TDUP LGCY OM LAKE TTGT RXST CURV |
Minot Light Capital delivered 18.1% net returns in Q2 2025, outperforming benchmarks through micro-cap investing in companies below $100mm market cap. The fund capitalizes on technical dislocations and early-stage growth opportunities unavailable to larger investors, with winners including ThredUp and Legacy Education offset by challenges at Lakeland Industries and TechTarget. |
| Apr 30 2025 | 2025 Q1 | CYRX, DAVE, DERM, GRPN, MRVI, OM, REAL, RPID, TDUP, W | Biotechnology, consumer, growth, healthcare, Microcap, small caps, value, volatility | CYRX | Minot Light Capital lost 11.5% in Q1 2025 but outperformed microcap benchmarks in an extremely volatile environment. The fund remains fully invested in high-beta small/microcap growth stocks, focusing on secular growers, consolidators, consumer survivors, and discounted healthcare companies. Managers are increasingly bullish long-term, viewing current volatility as an opportunity to concentrate into best ideas at attractive valuations. |
| Dec 31 2024 | 2024 Q4 | BYON, CFR.SW, DERM, MYTE, REAL, TDUP, TMDX | Dermatology, E-Commerce, growth, Luxury, Microcap, small caps, Specialty Pharma, value |
MYTE DERM |
Minot Light Capital's inaugural quarter delivered 5.2% net returns versus 2.4% for the S&P 500, validating their small/microcap strategy. The diversified 100+ position portfolio targets overlooked companies with 115-120% projected upside and 30% downside. Key holdings include luxury marketplace MyTheresa following its YOOX acquisition and specialty pharma Journey Medical with newly approved Rosacea treatment launching in 2025. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
Small CapsThe fund focuses on small and micro-cap companies with sustainable business models, profitability, and strong balance sheets. The portfolio is diversified across approximately 60 holdings with little leverage. The managers emphasize risk-adjusted returns and downside protection while participating in the small-cap bull market. |
MicroCap Risk Management Diversification Balance Sheets |
IPOsThe fund is capitalizing on an inefficiency in non-tech IPOs where high-quality companies underwritten by blue-chip banks are falling after listing due to short-term hedge fund allocations. Examples include Bob's Discount Furniture, Once Upon a Farm, Suja Life, and Mobia Medical, which the fund bought at attractive valuations after post-IPO collapses. |
Busted IPOs Supply Demand Underwriters Valuation | |
Senior CareThe fund is bullish on private pay senior care operators over the next 5+ years as baby boomers move past 80 years old, driving demand acceleration. Limited new construction will lead to higher occupancy rates, strong pricing power, and operating leverage. Sonida Senior Living is highlighted as a key position benefiting from this trend. |
Demographics Occupancy Pricing Power Operating Leverage | |
AIThe fund was not early to the AI buildout theme and views most small and micro-cap beneficiaries as cyclical and over-earning with premium multiples. However, they own companies incorporating AI into core products for long-term growth, such as Sophia Genetics, Heartflow, Toast, and Samsara, which offer sustainable business models at attractive valuations. |
Cyclical Valuations Product Integration Sustainable Growth | |
SecurityThe fund owns Xtract One Technologies and Evolv Technologies, providers of automated weapons detection systems for venues, schools, and facilities. The market opportunity is sized in tens of billions with strong demand growth. Xtract One is transitioning to recurring revenue and positioned to uplist to a major US exchange within 12-18 months. |
Weapons Detection Recurring Revenue Market Opportunity Uplisting | |
DialysisRockwell Medical operates a duopoly in US hemodialysis bicarbonate concentrates with a recurring business model. The company is now cash flow positive after margin expansion under CEO Dr. Mark Strobeck. The fund increased its position after a reverse stock split announcement triggered selling, viewing the stock as trading below net cash with attractive upside. |
Duopoly Cash Flow Reverse Split Net Cash | |
| 2026 Q1 |
Small CapsFund focuses exclusively on small and micro-cap opportunities, believing this volatility provides great long-term opportunities to buy excellent companies at attractive valuations. The managers view the current environment as ideal for building muscle memory around capital preservation while positioning to capitalize on future dislocations. |
Small Cap Micro Cap Volatility Dislocations Value |
HealthcareFund has disproportionate exposure to healthcare sector, which has been a headwind due to sector rotation. However, they highlight strong performers like Legacy Education benefiting from healthcare worker shortages and medical device companies like Neuraxis gaining from industry guidelines and reimbursement progress. |
Healthcare Medical Devices Biotech Sector Rotation | |
ConsumerConsumer discretionary has been challenging due to war-related sector rotation and concerns about rising interest rates impacting the US consumer. The fund owns Bob's Discount Furniture as an example of a strong business model in an out-of-favor sector, positioned to gain market share during downturns. |
Consumer Discretionary Retail Interest Rates Market Share | |
| 2025 Q4 |
Small CapsThe fund focuses exclusively on small and micro-cap investing, believing there is compelling opportunity for meaningful long-term capital appreciation in this space. They view their process as sound, sustainable, and scalable for generating alpha in small/micro-cap markets. |
Small Cap Micro Cap Alpha Generation |
VolatilityThe managers describe unprecedented volatility in small/micro-cap space that creates both great opportunities and serious risks. They embrace this volatility as it allows buying below fair value and selling above, but note it can lead to violent declines that breach traditional valuation support levels. |
Market Volatility Price Discovery Risk Management | |
MomentumThe fund believes momentum as a factor has become over-owned, with too many investors avoiding declining stocks. They see taking the other side of downward momentum as extremely profitable, provided proper positioning to ride through volatility. |
Momentum Factor Contrarian Investing Factor Investing | |
ValueTraditional valuation metrics and multiple bands are less reliable as downside support in current markets. The fund is adapting by requiring greater stringency around secondary lines of defense like cash, liquidation value, and minimal debt when buying out-of-favor stocks. |
Valuation Metrics Downside Protection Value Investing | |
| 2025 Q3 |
HealthcareThe fund is heavily positioned in out-of-favor healthcare stocks with strong business models, high growth potential, and substantial embedded optionality. ClearPoint Neuro provides hardware and consumables for precise drug delivery to brain and spine, particularly for cell and gene therapies. Lucid Diagnostics markets an FDA-approved DNA test for early detection of esophageal precancer with multi-billion dollar market opportunity pending Medicare reimbursement approval. |
Biotechnology Medical Devices Diagnostics Gene Therapy Healthcare IT |
E-commerceThe RealReal is positioned as the leader in online consignment of second-hand luxury goods, capitalizing on secular growth trends within the expanding resale and circular economy. The company benefits from network effects with 1M+ active buyers and proprietary AI tools like Athena for authentication and item processing. Strong operating leverage demonstrated with 42.5% incremental EBITDA margin on 14% revenue growth. |
Marketplaces Luxury AI Circular Economy | |
WaterArq is the only domestic activated carbon producer with fully vertically integrated supply chain, well-positioned for GAC market growth driven by EPA PFAS regulations in municipal drinking water. The company expects GAC demand could increase 3-5x for the water market as institutions prepare for regulatory compliance, with minimal new capacity entering the market due to long lead times. |
Water Treatment Environmental Services Regulatory Compliance | |
Small CapsThe fund focuses exclusively on small and micro-cap stocks where the managers believe their process can generate significant alpha in highly inefficient market segments. The strategy involves finding overlooked opportunities with strong competitive advantages and sustainable growth profiles, often in companies transitioning from micro-cap to small-cap sweet spot as they gain institutional recognition. |
MicroCap Value Growth Market Inefficiency | |
| 2025 Q2 |
Small CapsThe fund focuses exclusively on small and micro-cap companies, targeting market capitalizations well below $100mm and in some cases below $50mm and $25mm. This represents an area where the vast majority of institutional small-cap investors are either unable or unwilling to explore. The strategy seeks to capitalize on inefficiencies in the most illiquid segment of the domestic public equity markets. |
MicroCap SmallCap Liquidity Inefficiencies Alpha |
GrowthThe fund seeks emerging high-growth companies at their earliest possible stage and builds a roster of longer-term core growth holdings with attractive business models. The strategy focuses on finding growth at the absolute earliest possible stage for publicly-traded companies, where the highest potential return is achieved when right on a long-duration growth story. |
Growth Emerging Long-duration Business Models Returns | |
ValueThe fund holds names with reasonably good business models that have experienced violent declines due to one-off issues and lack of liquidity. The strategy looks for true dislocations that drive stock prices significantly below assessment of intrinsic value, not just small pullbacks but liquidity-based violent dislocations. |
Value Dislocations Intrinsic Value Pullbacks Liquidity | |
| 2025 Q1 |
Small CapsThe fund focuses on small and microcap growth stocks with high-beta characteristics. Market corrections provide opportunities to purchase premier growers at reasonable valuations when they become expensive during benign environments. |
Growth Microcap High-beta Volatility Secular |
BiotechnologyThe fund has been accumulating small-cap healthcare and life sciences companies in this out-of-favor sector. Despite legitimate concerns about biotech capital markets downturn and funding issues, much of this is discounted in valuations. |
Life Sciences Biotech Healthcare Capital Markets Funding | |
E-commerceThe fund owns high-growth consumer companies that can survive and gain market share during downturns. These consumer survivors/thrivers are positioned to benefit from consolidation as smaller competitors may lack financial wherewithal. |
Consumer Market Share Consolidation Recession Survivors | |
| 2024 Q4 |
LuxuryThe fund's largest holding MyTheresa operates in the high-end luxury fashion space and recently acquired YOOX NET-A-PORTER from Richemont. The transaction creates substantial synergies and establishes MyTheresa as a leading curated digital platform for luxury fashion. Management expects the combined legacy MYTE and Mr. Porter brands to generate around $2.2 billion in revenues in 2025. |
Luxury Fashion Digital Marketplace Synergies |
E-commerceThree of the quarter's biggest contributors were online marketplaces: The RealReal focused on second-hand luxury, ThredUp focused on second-hand apparel, and MyTheresa focused on brand-name luxury. These platforms represent different approaches to digital commerce with varying long-term performance drivers despite some correlation due to online retail sentiment. |
Marketplaces Digital Online Retail Commerce | |
Specialty PharmaJourney Medical represents the fund's third largest position in the specialty pharmaceutical space focused on dermatology. The company received FDA approval for Emrosi for Rosacea treatment, which demonstrated superiority over the current standard of care Oracea. Management expects this product launch to drive massive increases in earnings and free cash flow beginning in the second half of 2025. |
Dermatology FDA Approval Rosacea Commercial | |
Small CapsThe fund's small asset base provides competitive advantages in the small and microcap space, allowing investment in names below $100 million, $50 million, and even $25 million market capitalization. The manager notes that micro and nano-cap stocks have actually muted near-term downside volatility because many are not in major indices and don't move as much on index-driven sell-offs. |
Microcap Liquidity Volatility Index Diversification |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 15, 2026 | Fund Letters | Minot Light Capital Partners | SNDA | Sonida Senior Living | Medical Care Facilities | Health Care REITs | Bull | NASDAQ | Assisted Living, Baby Boomers, deleveraging, Demographic Tailwinds, Healthcare Real Estate, merger, Micro-cap, operating leverage, REIT, Senior Living | Login |
| Jul 15, 2026 | Fund Letters | Minot Light Capital Partners | XTRAF | Xtract One Technologies | Software - Application | Electronic Equipment & Instruments | Bull | - | AI-powered, Canada, growth, Micro-cap, Physical Security, recurring revenue, SaaS, Security Technology, uplisting, weapons detection | Login |
| Jul 15, 2026 | Fund Letters | Minot Light Capital Partners | RMTI | Rockwell Medical | Drug Manufacturers - Specialty & Generic | Health Care Supplies | Bull | NASDAQ | deep value, Dialysis, duopoly, Free Cash Flow, Healthcare Supplies, Micro-cap, net cash, recurring revenue, Reverse Stock Split, turnaround | Login |
| Apr 29, 2026 | Fund Letters | Minot Light Capital Partners | BOBS | Bob's Discount Furniture | Specialty Retail | Specialty Retail | Bull | NASDAQ | Consumer Discretionary, contrarian, furniture retailer, housing market, IPO, market share gains, strong balance sheet, Unit growth | Login |
| Apr 29, 2026 | Fund Letters | Minot Light Capital Partners | ICCC | ImmuCell | Biotechnology | Pharmaceuticals | Bull | NASDAQ | Animal Health, capacity expansion, Corporate Governance, Management Change, market share gains, Micro-cap, turnaround, Veterinary Products | Login |
| Jan 18, 2026 | Fund Letters | Eddie Reilly | XOMA | XOMA Royalty Corporation | Health Care | Biotechnology | Bull | NASDAQ | Biotech, Optionality, platform, royalties, Volatility | Login |
| Jan 18, 2026 | Fund Letters | Eddie Reilly | RZLT | Rezolute, Inc. | Health Care | Biotechnology | Bull | NASDAQ | Biotech, Dislocation, Netcash, pipeline, Rebound | Login |
| Jan 18, 2026 | Fund Letters | Eddie Reilly | ARQ | Arq, Inc. | Industrials | Chemicals | Bear | NASDAQ | Balance_Sheet, Capacity, cashflow, Delays, Executionrisk | Login |
| Jan 18, 2026 | Fund Letters | Eddie Reilly | OM | Outset Medical, Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Medical devices, Netcash, recurring revenue, Tax-loss, turnaround | Login |
| Oct 19, 2025 | Fund Letters | Eddie Reilly | REAL | The RealReal, Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | AI, Authentication, Consignors, network effects, operating leverage, profitability, Resale | Login |
| Oct 19, 2025 | Fund Letters | Eddie Reilly | CLPT | ClearPoint Neuro, Inc. | Health Care | Health Care Equipment & Supplies | Bull | NASDAQ | Cell and gene therapy, Disposables, Installed base, Neurosurgery, pipeline, Reimbursement, switching costs | Login |
| Oct 19, 2025 | Fund Letters | Eddie Reilly | ARQ | Arq, Inc. | Industrials | Specialty Chemicals | Bull | NASDAQ | Activated-carbon, Capacity, Margins, Pfas, Pricing, Ramp, vertical integration | Login |
| Oct 19, 2025 | Fund Letters | Eddie Reilly | CURV | Torrid Holdings Inc. | Consumer Discretionary | Apparel Retail | Bull | NYSE | Apparel, deleveraging, Free Cash Flow, Margins, Omnichannel, Store-closures, tariffs | Login |
| Oct 19, 2025 | Fund Letters | Eddie Reilly | LUCD | Lucid Diagnostics Inc. | Health Care | Health Care Equipment & Supplies | Bull | NASDAQ | Catalysts, Clinical-utility, diagnostics, Dilution, Governance, Reimbursement, TAM | Login |
| Oct 19, 2025 | Fund Letters | Eddie Reilly | SWAG | Stran & Company, Inc. | Communication Services | Specialty Business Services | Bull | NASDAQ | Acquisitions, FCF, Integration, Ncav, Pricing, Promotional-products, scale | Login |
| Jul 31, 2025 | Fund Letters | Eddie Reilly | TDUP | ThredUp Inc. | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Apparel, Logistics, Margins, Resale, scale, Sustainability | Login |
| Jul 31, 2025 | Fund Letters | Eddie Reilly | LGCY | Legacy Education Alliance, Inc. | Consumer Discretionary | Diversified Consumer Services | Bull | Dubai Financial Market | Demand, Education, Margins, restructuring, Scalability, turnaround | Login |
| Jul 31, 2025 | Fund Letters | Eddie Reilly | OM | Outset Medical, Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Adoption, Consumables, Devices, Dialysis, innovation, Reimbursement | Login |
| Jul 1, 2025 | Fund Letters | Minot Light Capital Partners | TDUP | ThredUp Inc | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NASDAQ | Artificial Intelligence, e-commerce, Free Cash Flow, Micro-cap, online marketplace, Secondhand Clothing, Technical Dislocation, turnaround | Login |
| Jul 1, 2025 | Fund Letters | Minot Light Capital Partners | LGCY | Legacy Education Alliance Inc | Consumer Discretionary | Diversified Consumer Services | Bull | NASDAQ | Campus Expansion, For-Profit Education, growth, Healthcare education, Healthcare Workers, Regulatory Moat, small-cap, Supply Demand Gap | Login |
| Jul 1, 2025 | Fund Letters | Minot Light Capital Partners | OM | Outset Medical Inc | Health Care | Health Care Equipment & Supplies | Bull | NASDAQ | Dialysis Equipment, healthcare, Home Healthcare, Medical devices, Micro-cap, recurring revenue, Reverse Stock Split, Technical Dislocation | Login |
| Jul 1, 2025 | Fund Letters | Minot Light Capital Partners | LAKE | Lakeland Industries Inc | Industrials | Textiles, Apparel & Luxury Goods | Bull | NASDAQ | CEO transition, Fire Protection, Industrial Safety, M&A strategy, margin expansion, Protective Clothing, Scale Building, turnaround | Login |
| Jul 1, 2025 | Fund Letters | Minot Light Capital Partners | TTGT | TechTarget Inc | Communication Services | Interactive Media & Services | Bear | NASDAQ | AI disruption, B2B Marketing, Capital Redeployment, cyclical downturn, exit strategy, Merger Integration, Technology Media, Thesis Breakdown | Login |
| Jul 1, 2025 | Fund Letters | Minot Light Capital Partners | RXST | RxSight Inc | Health Care | Health Care Equipment & Supplies | Bull | NASDAQ | Cataract Surgery, international expansion, Light Adjustable Lenses, medical technology, net cash, Premium iols, Razor-Blade Model, strategic value | Login |
| Jul 1, 2025 | Fund Letters | Minot Light Capital Partners | CURV | Torrid Holdings Inc | Consumer Discretionary | Specialty Retail | Bull | NYSE | Customer loyalty, deleveraging, margin expansion, Plus-sized Apparel, Private-label, Secondary Offering, Store Optimization, Technical Dislocation | Login |
| Apr 1, 2025 | Fund Letters | Minot Light Capital Partners | CYRX | CryoPort | Health Care | Life Sciences Tools & Services | Bull | NASDAQ | Biotech, cell therapy, Cold Chain Logistics, gene therapy, high switching costs, life sciences, net cash, recurring revenue, supply chain, Temperature Control, Value | Login |
| Jan 1, 2025 | Fund Letters | Minot Light Capital Partners | MYTE | MyTheresa | Consumer Discretionary | Internet & Direct Marketing Retail | Bull | NYSE | European, fashion, Luxury E-commerce, M&A, marketplace, synergies, turnaround | Login |
| Jan 1, 2025 | Fund Letters | Minot Light Capital Partners | DERM | Journey Medical | Health Care | Pharmaceuticals | Bull | NASDAQ | Commercial Infrastructure, dermatology, FDA approval, Market Share Gain, product launch, rosacea treatment, Specialty pharma | Login |
| TICKER | COMMENTARY |
|---|---|
| SNDA | Sonida Senior Living represents the convergence of a micro-cap company trading at a discounted valuation with very little liquidity initiating a merger to eject itself out of what we often refer to as 'micro-cap hell' into a much more investable small-cap status amid a very positive senior care industry backdrop. Sonida announced its intention to merge with CNL Healthcare Properties in November, 2025. The merger made tremendous sense, as it brought together two highly illiquid sub-scale micro-cap companies, deleveraged the combined balance sheet, resulted in significant pro-forma profitability improvements due to synergies, and dramatically increased the float and market cap of RemainCo. Sonida went from a $500M market cap with a $180M free float to a $1.4B market cap with a $1B free float. The combined company became immediately investable to traditional institutional small-cap investors, whereas the two prior entities were not. The combined company also screened very well from a valuation perspective relative to the larger senior care REITs. The timing on the merger was ideal, as the new entity was created on the cusp of a major industry upcycle. The combination of deleveraging, improved cashflows and greater liquidity also served to lower the cost of capital to Sonida on both the debt and equity sides of its ledger. Minot Light purchased shares of Sonida soon after the merger was announced. Since then, our confidence in this thesis has only increased after several positive channel checks on the company, some interaction with management, and continued confidence in this upcycle. We are also beginning to see the expected increase in stock liquidity, growing sell-side and buy-side interest in the combined company, and strong share price appreciation - this in turn lowers the company's cost of capital, which should help future deals become even more accretive. We remain bullish on the outlook for Sonida and other senior care operators over the next several years. |
| XTRAF | Xtract One Technologies is one of the leading providers of automated weapons detection systems for sports and entertainment venues, schools, hospitals, manufacturing facilities, and offices. Xtract's business model is moving towards a majority of revenues being recurring. Currently, the split between system sales being cash upfront vs subscription is about even, depending on the quarter. However, over time, the company will look to shift the majority of sales to a multi-year recurring revenue model, which has historically demonstrated very little churn. After numerous conversations with the company's CEO Peter Evans and CFO Karen Hersh over the past year and watching them execute consistently, we do think highly of Xtract One's management and how efficiently they have managed the business while growing at very high rates. The company is now essentially cashflow positive with a net cash balance sheet. Following the release of Xtract One's newest product (Xtract One Gateway), which is seeing great traction in the marketplace, we believe it is very well positioned to be a leading competitor to Evolv. Xtract One now has a revenue run-rate of about $35M and is certainly a top-three competitor in an underpenetrated market that is projected to be worth tens of billions of dollars going forward. Though the Xtract One story is only getting better in many regards, it still trades at a meaningful discount to both Evolv and our assessment of long-term fair value. This is because it is a micro-cap company that trades primarily in Canada with a small revenue base that is just turning profitable. Management's goal is to put up a few more quarters of profitability and steady growth, as well as shift the revenue mix more heavily towards recurring revenue via subscription sales. At that point, we believe the company will look to uplist onto a major US exchange. When we look out several years, we can easily envision a company trading on a major US exchange, doing at least $100M in revenues (the majority of which is recurring), with gross margins of 65% and EBITDA margins greater than 20%. If this scenario comes to fruition, we believe the company would be worth at least US$500M vs the current mkt cap of CA$143M (~US$100M). |
| EVLV | Evolv Technologies is a leading competitor to Xtract One in automated weapons detection systems. Evolv has already accomplished the transition to recurring revenue and the vast majority of its sales are now recurring. This is not a winner take all market and there is more than enough business to go around for multiple leading competitors. |
| RMTI | Rockwell Medical is a company we have followed since the fund's inception and have had many conversations with management during this period of time. The reason we have kept a close eye on the company is due to the generally recurring nature of the core business in hemodialysis bicarbonate concentrates, where it essentially has a duopoly in the US. In addition, we have been impressed by how CEO Dr. Mark Strobeck has guided the company through several challenging periods since joining in 2022, emerging from each in a stronger position, while steadily expanding margins. These efforts have brought Rockwell to the point where it should now be generating positive cash flow. We have been slowly increasing our position in Rockwell this year, as the company has been executing well while the stock has been falling. Shares of Rockwell had fallen under $1.00/share and it seemed inevitable that the company would have to initiate a reverse stock split to avoid being de-listed. On June 29, 2026, Rockwell announced a reverse split that would be executed on July 1, 2026. The stock fell about 24% from a high of $6.80 on 6/26 to a low of $5.19 on 7/1 (post-split prices). We have been meaningfully increasing our position in RMTI during the past few weeks to take advantage of what we believe is a classic inefficiency around the announcement of a reverse-stock split. If Rockwell continues to execute according to plan, it could take revenues from the current run-rate of around $70M to $100M by 2030 and generate $5-$10M of free cash flow. The company is now trading around $5.50/share with 4.6M fully diluted shares outstanding with $15M of net cash on its balance sheet. This equates to a market cap of $25M, an enterprise value of only $10M, and an EV/Sales ratio of 0.14x. Net cash and investments per share total approximately $3.50. |
| OM | Outset Medical was a company where we were able to purchase shares below net cash on the balance sheet, despite core businesses with several attractive characteristics. These can be some of the most frustrating stocks to own in the near-term, but over time, as we have been able to lower our average cost, they have made us money and eventually contributed nicely to partnership returns. |
| MXCT | MaxCyte was a company where we were able to purchase shares below net cash on the balance sheet, despite core businesses with several attractive characteristics. These can be some of the most frustrating stocks to own in the near-term, but over time, as we have been able to lower our average cost, they have made us money and eventually contributed nicely to partnership returns. MaxCyte was the top contributor to performance in Q2 2026. |
| SWAG | Stran & Company was the second largest contributor to performance in Q2 2026. |
| CYRX | CryoPort was the third largest contributor to performance in Q2 2026. |
| TDUP | ThredUp was the fourth largest contributor to performance in Q2 2026. |
| ICCC | ImmuCell was the fifth largest contributor to performance in Q2 2026. |
| SUJA | Suja Life was one of several non-tech IPOs underwritten by blue-chip underwriters that barely moved or fell on day one and then subsequently collapsed in the following month. After reading their S1 Offering Documents and watching their roadshows, we were excited about the company and bought shares on the first day of trading or soon after. We fully expected the stock to rise 20% or more soon after trading commenced. Much to our surprise, after a very short-lived pop, the stock essentially collapsed very soon after the IPO and/or in conjunction with their first reported quarter, bringing the stock down to what we believe are very attractive levels from a valuation standpoint. We meaningfully increased our position as the shares went into freefall. Since then, the stock has recovered to varying degrees and we are making good money on this theme so far and expect to make more going forward. Suja Life was the largest detractor to performance in Q2 2026. |
| LGCY | Legacy Education was the second largest detractor to performance in Q2 2026. |
| KRUS | Kura Sushi was the third largest detractor to performance in Q2 2026. |
| CHWY | Chewy was the fourth largest detractor to performance in Q2 2026. |
| BOBS | Bob's Discount Furniture was one of several non-tech IPOs underwritten by blue-chip underwriters that barely moved or fell on day one and then subsequently collapsed in the following month. After reading their S1 Offering Documents and watching their roadshows, we were excited about the company and bought shares on the first day of trading or soon after. We fully expected the stock to rise 20% or more soon after trading commenced. Much to our surprise, after a very short-lived pop, the stock essentially collapsed very soon after the IPO and/or in conjunction with their first reported quarter, bringing the stock down to what we believe are very attractive levels from a valuation standpoint. We meaningfully increased our position as the shares went into freefall. Since then, the stock has recovered to varying degrees and we are making good money on this theme so far and expect to make more going forward. |
| OFRM | Once Upon a Farm was one of several non-tech IPOs underwritten by blue-chip underwriters that barely moved or fell on day one and then subsequently collapsed in the following month. After reading their S1 Offering Documents and watching their roadshows, we were excited about the company and bought shares on the first day of trading or soon after. We fully expected the stock to rise 20% or more soon after trading commenced. Much to our surprise, after a very short-lived pop, the stock essentially collapsed very soon after the IPO and/or in conjunction with their first reported quarter, bringing the stock down to what we believe are very attractive levels from a valuation standpoint. We meaningfully increased our position as the shares went into freefall. Since then, the stock has recovered to varying degrees and we are making good money on this theme so far and expect to make more going forward. |
| MOBI | Mobia Medical was one of several non-tech IPOs underwritten by blue-chip underwriters that barely moved or fell on day one. After reading their S1 Offering Documents and watching their roadshows, we were excited about the company and bought shares on the first day of trading or soon after. We fully expected the stock to rise 20% or more soon after trading commenced. Much to our surprise, after a very short-lived pop, the stock was flattish or fell. |
| SOPH | Sophia Genetics is a company with a very strong business model where the incorporation of AI into their core products will drive substantial incremental long-term growth and earnings power. We require our aggressive growth holdings to demonstrate sustainable business models, trade at attractive valuations based on our estimates of out-year earnings power and offer a favorable risk-reward profile. |
| HTFL | Heartflow is a company with a very strong business model where the incorporation of AI into their core products will drive substantial incremental long-term growth and earnings power. We require our aggressive growth holdings to demonstrate sustainable business models, trade at attractive valuations based on our estimates of out-year earnings power and offer a favorable risk-reward profile. |
| TOST | Toast is a company with a very strong business model where the incorporation of AI into their core products will drive substantial incremental long-term growth and earnings power. We require our aggressive growth holdings to demonstrate sustainable business models, trade at attractive valuations based on our estimates of out-year earnings power and offer a favorable risk-reward profile. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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