Does LifeCore (LFCR) Have a High Expected Value?

Greenhaven Road Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. A copy of the letter can be downloaded here. In the second quarter, the fund returned approximately +14% net of fees and expenses, bringing the YTD returns to under +1%. YTD, the Russell 2000 has returned -1.8%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Greenhaven Road Capital highlighted stocks such as Lifecore Biomedical, Inc. (NASDAQ:LFCR). Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization. The one-month return of Lifecore Biomedical, Inc. (NASDAQ:LFCR) was -0.54%, and its shares gained 30.05% of their value over the last 52 weeks. On August 18, 2025, Lifecore Biomedical, Inc. (NASDAQ:LFCR) stock closed at $7.40 per share, with a market capitalization of $276.818 million.

Greenhaven Road Capital stated the following regarding Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its second quarter 2025 investor letter:

"Another holding that I believe has a high expected value is Lifecore Biomedical, Inc. (NASDAQ:LFCR), which I have written about extensively. Here is a link to a recent presentation (link) I did for the investing platform SumZero. Kyle and I visited the manufacturing facility in Minnesota during the quarter and spent time with management and the business development team. As a reminder, LifeCore is a contract drug manufacturer which has recently added significant manufacturing capacity. They are operating at approximately 20% of their capacity with 15% EBITDA margins.

Reasonable people can argue about the scale, scope, and implementation of President Trump’s trade policy, but most people would prefer that their drugs be made in the US. This month, Trump has repeated a desire to impose a 200% tariff on drugs made outside of the US to be implemented in 1.5 years. While our investment thesis is not based on the imposition of additional tariffs, if imposed, it would be a gift to the business development team at LifeCore, which has a ton of capacity to sell. In fact, it would be hard to come up with a more helpful sales tool than that being advertised by the President of the United States…” (Click here to read the full text)

Lifecore Biomedical, Inc. (NASDAQ:LFCR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Lifecore Biomedical, Inc. (NASDAQ:LFCR) at the end of the first quarter compared to 10 in the previous quarter. While we acknowledge the potential of Lifecore Biomedical, Inc. (NASDAQ:LFCR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Lifecore Biomedical, Inc. (NASDAQ:LFCR) and shared Laughing Water Capital's views on the company. Greenhaven Road Capital increased its stake in Lifecore Biomedical, Inc. (NASDAQ:LFCR) in the previous quarter to nearly 10%. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.