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1 Main Capital, a boutique investment firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned (3.6)% net in the first quarter compared to (4.3)% and (9.5)% for the S&P 500 (SPX) and Russell 2000 (RTY). Since its inception in February 2018, the fund has returned annualized net returns of 19.5%, compared to 11.9% and 4.8% for the indexes. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its first-quarter 2025 investor letter, 1 Main Capital highlighted stocks such as Third Harmonic Bio, Inc. (NASDAQ:THRD). Third Harmonic Bio, Inc. (NASDAQ:THRD) is a biopharmaceutical company. The one-month return of Third Harmonic Bio, Inc. (NASDAQ:THRD) was 48.28%, and its shares lost 55.90% of their value over the last 52 weeks. On May 1, 2025, Third Harmonic Bio, Inc. (NASDAQ:THRD) stock closed at $5.16 per share with a market capitalization of $232.76 million.
1 Main Capital stated the following regarding Third Harmonic Bio, Inc. (NASDAQ:THRD) in its Q1 2025 investor letter:
"Third Harmonic Bio, Inc. (NASDAQ:THRD) came public in 2022, and its shares quickly came under pressure after the company reported that THB001, its primary drug, caused liver toxicity issues in trials. In February 2025, phase 1 data for another pipeline asset, THB335 (“335”), also disappointed investors.
A close-up of a microscope, revealing the details of a small-molecule KIT inhibitor.
Third Harmonic Bio, Inc. (NASDAQ:THRD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Third Harmonic Bio, Inc. (NASDAQ:THRD) at the end of the fourth quarter, compared to 16 in the third quarter. While we acknowledge the potential of Third Harmonic Bio, Inc. (NASDAQ:THRD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.