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Laughing Water Capital Posts Strong Q2 Returns as Three Near‑Term Catalysts Could Reprice Holdings

The fund says concentrated, value bets may revalue positions because upcoming legal, regulatory and corporate actions could produce outsized outcomes.

Overview

  • Laughing Water published its Q2 investor letter in mid-July reporting Class A returned about 39.8% in Q2 and a roughly 33.6% year-to-date return net of fees.
  • The firm attributed the quarter’s gains to a concentrated portfolio in which three of its top five positions were acquired and its largest holding nearly doubled.
  • AnaptysBio is at the immediate center of the fund’s thesis with a trial over Jemperli royalties set for July 14–17 that Laughing Water says could produce a binary outcome ranging from full recovery of rights to a pretrial settlement.
  • NextNav’s upside hinges on an FCC Notice of Proposed Rulemaking to permit 5G use of the 902–928 MHz band; the company has asked to run coexistence tests after CEO Miriam Sorond testified to Congress and has cleaned up its balance sheet with warrant calls and debt conversions.
  • Lifecore filed an 8‑K showing Series A preferred redemptions and that it is evaluating strategic alternatives, which Laughing Water views as increasing the likelihood of a near-term sale once recent new-business wins convert to cash flow.