Group 1 - Minot Light Capital Partners reported a net return of 7.6% for Q3 2025, which underperformed against benchmarks, particularly the micro-cap benchmark's return of 17.1% [1] - The fund's top five holdings were highlighted as key investment picks for 2025 [1] Group 2 - ClearPoint Neuro, Inc. (NASDAQ:CLPT) is a medical device company focused on minimally invasive surgical procedures, with a one-month return of -1.58% and a 52-week loss of 8.50% [2] - As of December 23, 2025, ClearPoint Neuro's stock closed at $14.37 per share, with a market capitalization of $427.483 million [2] - ClearPoint Neuro provides hardware and consumables for drug delivery to the brain and spine, focusing on cell and gene therapies, which creates long-term growth opportunities characterized by high switching costs and recurring revenue streams [3] - The company is emblematic of current healthcare holdings that have strong business models and high growth potential but have fallen out of favor during the healthcare sector downturn [3]

Group 1 - U.S. stocks experienced a decline, with the Dow Jones index dropping over 100 points on Tuesday [1] - Cementos Pacasmayo SAA – ADR shares surged 47.4% to $10.30 following Holcim's agreement to acquire 50.01% of its owner, Inversiones Aspi. S.A. [1] Group 2 - Rezolve AI PLC reported preliminary December revenue results, leading to a 23.7% increase in its stock price to $2.87 [2] - Emerald Holding Inc announced a review of potential strategic options, resulting in a 17% rise in its stock price to $4.14 [2] - NovaBay Pharmaceuticals Inc's stock increased by 16.2% to $3.15 [2] - Tilray Brands Inc saw a 15% surge in its stock price to $12.57 [2] - Clearpoint Neuro Inc's stock jumped 14.2% to $14.14 [2] - Fermi Inc gained 11.4%, reaching $9.57 [2] - Sezzle Inc authorized a $100 million stock buyback, leading to a 9.6% increase in its stock price to $72.49 [2] - WW International Inc launched a new platform for the GLP-1 era, resulting in a 7.8% gain to $26.19 [2] - Circle Internet Group Inc rose 7.7% to $81.24 [2] - Lemonade Inc's stock surged 7.4% to $80.59 [2] - Netskope Inc gained 6.9%, reaching $20.37 [2] - Ascentage Pharma Group International's stock rose 6% to $29.26 [2] - RH's stock increased by 5.5% to $172.60, with Barclays analyst maintaining an Overweight rating and lowering the price target from $385 to $283 [2] - Affirm Holdings Inc gained 4.4%, reaching $68.56 [2]

Core Insights - Investment strategist Shay Boloor has identified ten sub-$10 billion market-cap companies poised to benefit from long-term trends leading into 2026, focusing on essential platforms and hard infrastructure rather than short-term narratives [1][19] Company Summaries - **Ondas Holdings (NASDAQ: ONDS)**: Developing a wireless connectivity layer for industrial and autonomous drones, with strong revenue growth momentum and a year-to-date stock increase of over 230% [2][3] - **Cipher Mining (NASDAQ: CIFR)**: Transitioning to a digital infrastructure owner with large-scale power and data-center assets, stock up over 250% year to date [6] - **Jumia Technologies (NYSE: JMIA)**: Refining its e-commerce and logistics model in Africa, with improved order volumes and a stock gain of about 215% [7] - **DigitalOcean Holdings (NYSE: DOCN)**: Regaining investor confidence with strong earnings and positioning as an AI inference cloud, stock up 40% year to date [8] - **IREN Limited (NASDAQ: IREN)**: Expanding compute capacity with record profitability and a nearly 285% stock increase [9] - **ClearPoint Neuro (NASDAQ: CLPT)**: Advancing image-guided navigation platforms for neurosurgeons, with a stock decrease of 18% year to date [10] - **Eos Energy Enterprises (NASDAQ: EOSE)**: Developing zinc-based energy storage systems for high-load environments, stock up 170% year to date [11] - **Navitas Semiconductor (NASDAQ: NVTS)**: Supplies gallium nitride power chips for AI data centers, stock up 145% year to date despite near-term pressures [14] - **Viking Therapeutics (NASDAQ: VKTX)**: Developing GLP-1 therapies for obesity and diabetes, with a stock decrease of about 10% [16] - **TransMedics Group (NASDAQ: TMDX)**: Scaling its organ care system with a focus on logistics, stock up about 90% [18]

Core Insights - Deep Sail Capital's third-quarter fund performance showed a net return of 5.8%, outperforming the Russell 2000 Mid Cap Growth Index's 0.4% but lagging behind the Russell 2000 Index's 12.4% gain [1] - Year-to-date, the fund achieved an 18.1% return net of fees, compared to 10.2% and 10.4% for the respective indexes [1] - The long portfolio was a significant contributor to the fund's performance, while the short portfolio underperformed due to market conditions [1] Company Focus: ClearPoint Neuro, Inc. (NASDAQ:CLPT) - ClearPoint Neuro, Inc. is highlighted as a key stock in Deep Sail Capital's portfolio, focusing on minimally invasive surgical procedures [2] - The stock experienced a one-month return of -11.07% and a 52-week gain of 4.30%, closing at $14.06 with a market capitalization of $418.261 million on December 04, 2025 [2] - ClearPoint Neuro was one of the largest contributors to the fund's performance in Q3, alongside Kraken Robotics [3] Industry Developments - ClearPoint Neuro is set to benefit from uniQure's strong trial results for its gene therapy AMT-130, which showed a ~75% slowing of Huntington's disease progression over three years [3] - The SmartFlow Cannula system provided by ClearPoint Neuro will be utilized in uniQure's treatments, indicating potential for significant milestone revenues and increased usage of their system in the future [3] - Despite its potential, ClearPoint Neuro is not among the 30 most popular stocks among hedge funds, with 10 hedge fund portfolios holding the stock at the end of Q3, unchanged from the previous quarter [4]

Core Viewpoint - ClearPoint Neuro has successfully completed the acquisition of IRRAS Holdings, enhancing its commercial scale and operational leverage while supporting its long-term strategy in CNS drug delivery innovation [1][4]. Acquisition Details - The acquisition involved a payment of $5.0 million in cash and the issuance of 1,325,000 shares of common stock to IRRAS shareholders, along with a revenue share on net sales of certain IRRAS products for specific periods [2]. - IRRAS' operational results will be included in ClearPoint Neuro's consolidated results starting from the fourth quarter of 2025 [2]. Strategic Benefits - The acquisition introduces the IRRAflow active fluid-exchange system, which modernizes the management of intracranial bleeding, and adds over 50 active customers along with a robust commercial team [3]. - The integration of IRRAS is expected to expand ClearPoint Neuro's presence in neurocritical care and complement its existing neurosurgical technologies and drug delivery platforms [3]. Leadership Insights - The CEO of ClearPoint Neuro emphasized that the acquisition is a significant milestone in building a leading platform for neuro drug delivery, enhancing the company's ability to serve patients and partners [4]. - The former CEO of IRRAS expressed confidence in ClearPoint Neuro's capability to advance the IRRAflow technology and extend its clinical impact [4].

Core Viewpoint - The company remains on track with its performance despite challenging market conditions, indicating resilience and a focus on long-term growth [1][2]. Group 1: Performance Overview - The company has performed well under current conditions, with appreciation for the efforts of its 31,000 global employees [2]. - There are signs of improvement in certain geographies, suggesting potential for better performance in the future [2]. Group 2: Financial Insights - The focus should be on trends rather than exact figures, as various factors such as tax rates, interest costs, and seasonality can affect financial results [3]. - The currency fluctuations, particularly the rand, are also influencing financial performance [3].

Company Performance - ClearPoint Neuro (CLPT) reported weak results in the third quarter, contributing to a decline in share price [1] - The reasons for the weak growth in recent quarters remain unclear, but quarterly volatility is expected due to the company's nascent state [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations caused by misunderstandings of long-term business prospects [1] - The firm aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with barriers to entry [1] - Narweena's research emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon [1] Market Trends - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, differing from past trends [1] - Many industries may face stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may encounter rising costs and diseconomies of scale, impacting their performance negatively [1] - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressed risk premia [1]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

Core Insights - ClearPoint Neuro, Inc. reported a quarterly loss of $0.21 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.20, marking a year-over-year increase from a loss of $0.18 per share [1] - The company generated revenues of $8.86 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 10.5%, but showing an increase from $8.12 million in the same quarter last year [2] - ClearPoint Neuro's stock has increased by approximately 10.4% since the beginning of the year, underperforming compared to the S&P 500's gain of 15.6% [3] Earnings Outlook - The earnings outlook for ClearPoint Neuro is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.19 on revenues of $10.7 million, and for the current fiscal year at -$0.81 on revenues of $38.3 million [7] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Instruments industry, to which ClearPoint Neuro belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue and Profitability - Total revenue for the three months ended September 30, 2025, was $8.861 million, a 9.1% increase from $8.122 million in the same period of 2024[18]. - Product revenue for the nine months ended September 30, 2025, reached $16.649 million, up 18.4% from $14.053 million in the prior year[18]. - Gross profit for the three months ended September 30, 2025, was $5.600 million, compared to $4.847 million for the same period in 2024, reflecting a 15.5% increase[18]. - For the nine months ended September 30, 2025, total revenue reached $26.561 million, up 12.3% from $23.619 million in the prior year[74]. - Revenue from biologics and drug delivery services for the three months ended September 30, 2025, was $4.402 million, slightly down from $4.431 million in 2024[72]. - Neurosurgery navigation and therapy revenue for the three months ended September 30, 2025, increased to $3.422 million from $2.860 million in 2024, representing a 19.6% growth[72]. - Capital equipment and software revenue for the three months ended September 30, 2025, totaled $1.037 million, compared to $831,000 in the same period of 2024, marking a 25% increase[72]. - The company recognized approximately $1.2 million of revenue from contract liabilities during the nine months ended September 30, 2025[77]. Losses and Expenses - The net loss for the three months ended September 30, 2025, was $5.891 million, compared to a net loss of $4.974 million in the same period of 2024, indicating a 18.4% increase in losses[18]. - For the nine months ended September 30, 2025, the company reported a net loss of $17.8 million, compared to a net loss of $13.5 million for the same period in 2024, representing a 31.5% increase in losses[27]. - Cash flows from operating activities resulted in a net cash outflow of $11.8 million for the nine months ended September 30, 2025, compared to a net cash outflow of $7.7 million for the same period in 2024, indicating a 53.2% increase in cash used[27]. - Share-based compensation expense for the three months ended September 30, 2025, was $2.022 million, compared to $1.904 million for the same period in 2024[108]. Assets and Liabilities - Total assets as of September 30, 2025, were $60.357 million, significantly higher than $39.189 million as of December 31, 2024[16]. - Total liabilities increased to $44.483 million as of September 30, 2025, compared to $13.800 million at the end of 2024[16]. - The total stockholders' equity decreased to $15.874 million as of September 30, 2025, down from $25.389 million at the end of 2024[16]. - The cumulative deficit at September 30, 2025, reached $209.1 million, highlighting ongoing financial challenges since inception[35]. Cash and Financing - Cash and cash equivalents increased to $38.221 million as of September 30, 2025, from $20.104 million at the end of 2024[16]. - The company had cash, cash equivalents, and restricted cash totaling $38.4 million at the end of the period, up from $21.6 million at the end of September 2024, reflecting a 78.1% increase[27]. - The company raised approximately $3.3 million from a stock purchase agreement in May 2025, selling 275,808 shares at $12.69 per share[38]. - The company also secured approximately $28.7 million from the issuance of notes payable under a note purchase agreement, with an initial sale of $30 million principal amount of notes[39]. - The Company entered into a 2025 NPA allowing for the sale of notes up to $105 million, with an initial sale of $30 million completed[84]. - The interest rate on the outstanding principal amount of the notes is a minimum of 8.25%, with a cap of 9.50%, and 50% of the interest due for the first six quarters will be paid-in-kind[87]. - The company expects to access an additional $20.0 million in funding to support integration activities and new growth initiatives following the merger[119]. Customer and Market Insights - The company has over 60 biologics and drug delivery customers currently evaluating or using its products and services, indicating a growing market opportunity[33]. - One pharmaceutical customer accounted for 8% of total sales for the three and nine months ended September 30, 2025[63]. Legal and Compliance - The Company settled a legal contingency in August 2025, with the settlement amount covered by insurance and not materially impacting financial statements[99]. Lease and Asset Management - A new lease for a building in San Diego, California, was recorded with a right-of-use asset and operating lease liability of $3.3 million[30]. - The Company has commitments for operating leases, with aggregate lease costs of $0.4 million for the three months ended September 30, 2025[98]. - The Company has a right-of-use asset and lease liability of $3.3 million related to a new lease agreement for office and R&D space in San Diego[97]. Stock and Equity - As of September 30, 2025, the outstanding stock options totaled 1,321,179 with a weighted average exercise price of $5.78 and an intrinsic value of $21,166,000[110]. - The restricted stock awards outstanding decreased to 16,341 with a weighted average fair value of $9.77 as of September 30, 2025[111]. - The restricted stock units outstanding were 1,654,007 with a weighted average fair value of $9.16 as of September 30, 2025, after granting 638,482 units at an average fair value of $13.33[112]. - In the first offering period of 2025, 30,610 shares were purchased under the Employee Stock Purchase Plan at an average offering price of $10.15[115]. Merger and Acquisition - On November 6, 2025, the company entered into a merger agreement with IRRAS Holdings, Inc., involving $5.0 million in cash and 1,325,000 shares of common stock[118]. - The merger agreement includes earnout consideration equal to 25% of net sales of certain IRRAS products above specified thresholds during three one-year periods[118].