Arquitos Capital Partners, an investment management firm, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. Arquitos Capital Management reported a standout year in which the fund returned 82.1% net of fees in 2025, significantly outperforming the Russell 2000’s 12.8% gain. The manager noted that market conditions became increasingly selective, with capital favoring established, cash-generating businesses while smaller and less liquid growth names faced volatility, particularly across mid- and small-cap equities. Despite shifting investor preferences and fading momentum in prior outperformers, Arquitos highlighted that portfolio results were driven by company-specific factors rather than economic deterioration, with a concentrated approach centered on its top positions and disciplined risk management helping support performance amid heightened dispersion. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Arquitos Capital Partners highlighted stocks like Liquidia Corporation (NASDAQ:LQDA). Liquidia Corporation (NASDAQ:LQDA) is a biopharmaceutical company focused on developing and commercializing innovative therapies for patients with rare cardiopulmonary diseases using its proprietary drug delivery technology platform. The one-month return of Liquidia Corporation (NASDAQ:LQDA) was 5.56% while its shares traded between $11.26 and $46.67 over the last 52 weeks. On February 13, 2026, Liquidia Corporation (NASDAQ:LQDA) stock closed at approximately $39.04 per share, with a market capitalization of about $3.483 billion.
Arquitos Capital Partners stated the following regarding Liquidia Corporation (NASDAQ:LQDA) in its Q4 2025 investor letter:
“Liquidia Corporation (NASDAQ:LQDA) was our largest contributor in 2025. Shares ended the year at $34.49, increasing from $11.76 at the start of the year. We primarily own long dated call options that are in the money.
