Arquitos Epicus, a private investment fund, achieved a remarkable 43.9% net return in 2025, primarily fueled by significant gains in Liquidia Corporation. The fund's strategy focuses on asymmetric, event-driven opportunities, emphasizing patience and concentrated positions. Key holdings include Liquidia call options, Finch Therapeutics equity, and Nam Tai Property equity, all of which contributed to the impressive performance despite varied individual company updates and legal challenges.
Detailed Report on Arquitos Epicus's 2025 Investment Performance
In the fiscal year 2025, the Arquitos Epicus fund delivered an outstanding 43.9% return after accounting for all fees and expenses. This impressive performance highlights the efficacy of its unique investment philosophy, which centers on identifying and capitalizing on asymmetric, event-driven opportunities through a highly concentrated portfolio. The fund's founder, Steven Kiel, structured Epicus to operate with minimal external influence, allowing for long-term vision and resilience against short-term market fluctuations.
As of December 31, 2025, the fund maintained three primary positions. Liquidia Corporation (LQDA) call options constituted approximately 45% of the portfolio, Finch Therapeutics (FNCH) equity represented about 43%, and Nam Tai Property (NTPIF) equity made up the remaining 12%. Earlier in the year, several smaller positions, totaling around 7% of the portfolio, were divested, yielding negative but ultimately immaterial returns to the overall performance.
Liquidia Corporation emerged as the dominant growth driver for Epicus in 2025. Shares of Liquidia surged from $11.76 at the beginning of the year to $34.49 by year-end. The fund strategically held call options, which were rolled forward earlier in the year. A crucial upcoming event for Liquidia is the court decision regarding the '327 patent claim. A favorable outcome could significantly boost share prices and potentially lead to acquisition offers. Even a partial loss, affecting only the PH-ILD treatment label, is anticipated to cause only a transient dip in share price, given that 75% of Liquidia's revenue already stems from PAH prescriptions.
Liquidia's product, Yutrepia, launched in late May 2025, quickly captured 25% of its market, notably bringing many new patients into treprostinil therapy. The company's patented PRINT manufacturing process offers a superior delivery method, enhancing effectiveness and reducing side effects. CEO Roger Jeffs projects Liquidia to achieve $1 billion in revenue by 2027, a target considered conservative by the fund, potentially pushing share prices beyond earlier bull case estimates of $100 per share.
Finch Therapeutics also contributed positively, with its shares climbing 19% to $13.49 in 2025, despite a lack of new updates in its ongoing legal battle. Finch had secured a jury victory against Ferring Pharmaceuticals in August 2024, which found Ferring guilty of infringing on three patents. This win entitled Finch to approximately $30 million in licensing fees and pre-trial interest, with further ongoing royalties and potential enhanced damages still awaiting judicial determination. The delay in the post-trial decision suggests ongoing settlement negotiations, with Finch positioned to benefit from accruing interest on the judgment.
Nam Tai Property, though experiencing a slight dip in share price from $4.75 to $4.30 by year-end 2025, also holds significant underlying value. Registered in the British Virgin Islands and owning real estate in mainland China, the company recently released updated audited financials from 2021 to 2024. Appraisals from December 2024 valued the company between $12.39 and $12.57 per share. A notable sale of its Wuxi property in May 2025 at a 60% premium to its appraised value suggests considerable upside for its other holdings. With its largest shareholder, Oasis Management, increasing its stake, and positive developments in project financing and leasing, Nam Tai is expected to present a strong balance sheet, potentially leading to a buyout above its net asset value.
The Arquitos Epicus fund's concentrated approach, driven by meticulous research into complex situations, has proven highly effective. This long-term, patient strategy allows the fund to capture value from both event-driven resolutions and subsequent operational growth phases, maximizing returns for its investors.
Reflections on Focused Investing and Long-Term Value Creation
The success of Arquitos Epicus in 2025 serves as a compelling testament to the power of a highly focused, patient, and event-driven investment strategy. In an investment landscape often swayed by short-term volatility and market noise, the fund's approach stands out for its deliberate concentration and commitment to long-term value realization. This narrative underscores the critical importance of deep fundamental analysis and conviction, particularly in complex situations where broader markets may overlook inherent value due to perceived uncertainty. It highlights that true investment acumen lies not merely in identifying promising assets, but in understanding the intricate timelines and catalysts that unlock their full potential, providing a powerful example for both seasoned investors and newcomers to the financial world.