Seeking Alpha·2026-01-23 09:50Performance Overview - Arquitos Capital achieved a net return of 82.1% in 2025, significantly outperforming the Russell 2000's return of 12.8% [2][3] - The fund's annualized returns since inception are 14.5%, with notable performance in the last year and six out of fourteen years exceeding 40% [3] Investment Strategy - The company focuses on a concentrated portfolio, primarily in three positions: Liquidia Corporation, ENDI Corp, and Finch Therapeutics, while exploring new investment opportunities [5][6] - The investment approach targets company-specific situations where potential rewards outweigh risks, particularly in smaller companies undergoing transitions [6][7] Liquidia Corporation - Liquidia was the largest contributor to Arquitos in 2025, with shares rising from $11.76 to $34.49, primarily driven by long-dated call options [10] - The company successfully launched its medication Yutrepia, capturing 25% market share and targeting a potential 80-90% of UTC's market share in the inhaled treprostinil market [16][19] - Liquidia's innovative PRINT manufacturing process enhances drug effectiveness and reduces side effects, positioning it favorably against competitors [17] ENDI Corp - ENDI's stock rose from $11.43 to $16.75 in 2025, with an increase in annual EBITDA run rate from $8 million to $12.5 million and AUM growing from $3.4 billion to $4.1 billion [26][27] - The company addressed a major overhang by executing an early cashless exercise of outstanding warrants, improving financial clarity for potential investors [29] Finch Therapeutics - Finch shares increased by 19% in 2025, following a jury trial win against Ferring Pharmaceuticals, resulting in a $30 million award and potential ongoing royalties [31][32] - The company is awaiting a post-trial decision that could further enhance its financial position, with accrued interest on the judgment benefiting shareholders [33]