Core Insights - Prosper Stars & Stripes achieved a net return of +9.8% in Q3 2025, outperforming its peer group which returned +3.8% and the Russell 2000 Index which returned +12.4% [1] - Year-to-date, the fund returned +8.6%, lagging behind the HFRI's +13.6% and the Russell's +10.4% [1] Fund Performance - The long book of the fund delivered strong performance in both Q3 and year-to-date 2025 [1] - The short book detracted from performance in both periods [1] Company Focus: Transcat, Inc. - Transcat, Inc. (NASDAQ:TRNS) has seen a one-month return of -23.90% and a 52-week loss of 46.48%, with a market capitalization of $524.443 million as of November 27, 2025 [2] - The fund has increased its exposure to healthcare stocks, particularly focusing on companies providing essential services and products to the sector [3] Industry Trends - The healthcare sector is expected to regain growth momentum as headwinds from the pandemic ease, driven by population growth and technological advancements [3] - Significant capital expenditure projects announced by major pharmaceutical and healthcare supply chain companies are anticipated to create growth opportunities for Transcat [3] - The trend towards reshoring production to avoid supply disruptions is a priority for both government and corporate sectors, which may benefit Transcat [3] Investment Outlook - Transcat is positioned to capitalize on expanding growth opportunities due to its strong distribution and service platform in the healthcare sector [3] - The company is expected to surprise positively as the industry materializes hundreds of billions in incremental investments over the next few years [3] - A potential recovery of Transcat's stock price towards $90+ is projected within the next 12 months, based on a mid to high teens EBITDA multiple [3]

Core Insights - U.S. pharmaceutical imports reached nearly $213 billion in 2024, significantly increasing from a decade ago [1] - The U.S. administration plans to impose tariffs on pharmaceuticals to encourage domestic manufacturing, a move already being pursued by companies like Eli Lilly and Johnson & Johnson [2][3] - Concerns have been raised about the feasibility and cost of reshoring production, which could disrupt supply chains and increase drug prices for patients [4][5] Industry Trends - The pharmaceutical industry has seen a dramatic decline in domestic manufacturing, with production moving to countries like China and India due to lower costs [2] - Analysts suggest that tariffs may not effectively shift manufacturing back to the U.S., as companies already have established operations domestically [5] - A group of House Democrats is advocating for the protection of medical supply chains, warning of potential negative impacts on U.S. patients due to trade tensions [6][7] Company Responses - Eli Lilly has invested $27 billion in U.S. manufacturing but expressed concerns about the impact of tariffs on research and development [8] - Johnson & Johnson announced a $55 billion investment in U.S. manufacturing and R&D over the next four years, but has not publicly commented on the tariffs [9]