Here's Why Lucid Diagnostics (LUCD) Declined in Q3

Minot Light Capital Partners, an investment management company, released its Q3 2025 investment letter. A copy of the letter can be downloaded here. In the quarter, Minot Light generated solid returns for limited partners, with a net of 7.6%. However, on a net basis, the performance underperformed the benchmarks, particularly the micro-cap benchmark’s 17.1% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Minot Light Capital Partners highlighted stocks such as Lucid Diagnostics Inc. (NASDAQ:LUCD). Lucid Diagnostics Inc. (NASDAQ:LUCD) is a US-based commercial-stage medical diagnostics technology company. The one-month return for Lucid Diagnostics Inc. (NASDAQ:LUCD) was 0.92%, and its shares gained 43.92% over the last 52 weeks. On December 23, 2025, Lucid Diagnostics Inc. (NASDAQ:LUCD) stock closed at $1.10 per share, with a market capitalization of $144.209 million.

Minot Light Capital Partners stated the following regarding Lucid Diagnostics Inc. (NASDAQ:LUCD) in its third quarter 2025 investor letter:

"Lucid Diagnostics Inc. (NASDAQ:LUCD): The second biggest detractor in our portfolio this quarter was Lucid Diagnostics. Lucid currently markets an FDA-approved DNA test for the early detection of esophageal precancer and cancer, known as EsoGuard. We believe EsoGuard has a legitimate multi-billion dollar plus market opportunity due to its unique capabilities, outstanding clinical data and attractiveness as a minimally invasive test for nonendoscopic precancer testing. The patient need for this test is large, the company’s clinical data is strong, and it has a unique position in the marketplace. The only thing holding back accelerating adoption has been a lack of reimbursement.

Though we have been aware of Lucid and EsoGuard’s potential for some time, we wanted further validation on the part of clinicians before taking on the risk of owning this stock in front of an upcoming rather binary Medicare approval decision. Fortunately, we were able to listen to a publicly held conference call with a Medicare Contractor Advisory Committee that took place in early September. It included an extensive discussion by several independent experts and physicians that have expertise in esophageal cancer and have analyzed EsoGuard’s clinical data. The universal sentiment from this independent panel was very positive towards the test and its ability to save lives. We walked away from that call convinced that the product had strong clinical utility and had a good probability of receiving Medicare reimbursement in the next few quarters, which would then hopefully pave the way for broader commercial reimbursement and meaningful revenues for Lucid…” (Click here to read the full text)

Lucid Diagnostics Inc. (NASDAQ:LUCD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 11 hedge fund portfolios held Lucid Diagnostics Inc. (NASDAQ:LUCD) at the end of the third quarter, up from 8 in the previous quarter. In Q3 2025, Lucid Diagnostics Inc. (NASDAQ:LUCD) reported revenue of $1.2 million reflecting a 4% sequential revenue increase and a 3% year-over-year increase. While we acknowledge the potential of Lucid Diagnostics Inc. (NASDAQ:LUCD) 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 addition, please check out our hedge fund investor letters Q3 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.