Laughing Water Capital, an investment management company, released its fourth-quarter 2025 investor letter. In the quarter, Laughing Water Capital returned ~6.8%, bringing the full-year returns to ~3.9% net of fees and expenses. In comparison, the SP500TR and R2000 returned approximately 2.7% and 2.2%, respectively, in the quarter, and finished the year up by 17.9% and 12.8%, respectively. A copy of the letter can be downloaded here. The Fund outperformed the indexes last year, but it has lagged behind them in the current year. However, what really matters is the cumulative returns over the long run, as volatility tends to smooth out over time. The Portfolio is well-positioned in this regard, delivering strong results on a cumulative basis since inception and returned about 400%, vs ~332% for the SP500TR and ~175% for our most relevant benchmark, the R2000. In addition, you can check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Laughing Water Capital highlighted stocks such as Lifecore Biomedical, Inc. (NASDAQ:LFCR). Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. On January 15, 2026, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $8.10 per share. One-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was 0.75%, and its shares gained 25.00% of their value over the last 52 weeks. Lifecore Biomedical, Inc. (NASDAQ:LFCR) has a market capitalization of $303.477 million.
Laughing Water Capital stated the following regarding Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its fourth quarter 2025 investor letter:
“Lifecore Biomedical, Inc. (NASDAQ:LFCR) – Lifecore, also discussed above, appreciated ~10% on the year despite fantastic execution toward the only thing that matters: increasing capacity utilization. Importantly for us, it seems as if the necessary elements of earnings power improvement and a re rating are already in place. On slide 11 of the company’s investor presentation, the company lays out a bridge for how they expect to fill their capacity in the years to come. This slide was first presented at the company’s Investor Day in November of 2024, and has not yet been updated. In this bridge, the “New Business” piece for the Mid Term and Long-Term are approximately $11M and $34M respectively. The $34M of Long-Term new business represents approximately 11% of total capacity.
link