Deep Sail Capital Partners' Investment Thesis for Sanuwave Health (SNWV)

Deep Sail Capital, an investment management company, released its third-quarter investor letter. A copy of the letter can be downloaded here. Deep Sail Capital Partners returned 14.2% net of fees in Q4 2025, with an average long exposure of 84%. For 2025, the Fund has returned 34.8%, with an average net long exposure of 82%. The Fund performed favorably compared to both of its benchmarks, the Russell 2000 Mid Cap Growth Index and the Russell 2000 Index, in the fourth quarter. Further, the Fund generated more than 10% outperformance compared to both benchmark indices over the full year. Both the long and short portfolios positively contributed to the Fund’s performance in the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Deep Sail Capital highlighted stocks such as SANUWAVE Health, Inc. (NASDAQ:SNWV). SANUWAVE Health, Inc. (NASDAQ:SNWV) is a medical device company. On February 4, 2026, SANUWAVE Health, Inc. (NASDAQ:SNWV) stock closed at $25.80 per share. SANUWAVE Health, Inc. (NASDAQ:SNWV) delivered a 14.49% return in the past month, and its shares are down 25.77% over the past twelve months. SANUWAVE Health, Inc. (NASDAQ:SNWV) has a market capitalization of $221.222 million.

Deep Sail Capital stated the following regarding SANUWAVE Health, Inc. (NASDAQ:SNWV) in its fourth quarter 2025 investor letter:

"SANUWAVE Health, Inc. (NASDAQ:SNWV) is a specialty medical device company with an incredible opportunity in front of it. Sanuwave is the maker and distributor of UltraMist, a low frequency, non-contact ultrasound energy device that delivers wound care treatment through a fluid mist. UltraMist is FDA approved and reimbursed through Nationwide CMS reimbursement via a therapy specific CPT code.

The investment thesis for Sanuwave Health, Inc. centers on a fundamental shift in the advanced wound care ecosystem, transitioning from high-cost, under-regulated biological grafts toward energy-based tissue regeneration. As the medical community and federal payers grapple with a multi-billion dollar surge in unsustainable spending on skin substitutes, Sanuwave has positioned its directed energy platforms with UltraMIST as a high-value alternative..." (Click here to read the full text)

SANUWAVE Health, Inc. (NASDAQ:SNWV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 4 hedge fund portfolios held SANUWAVE Health, Inc. (NASDAQ:SNWV) at the end of the third quarter, up from 2 in the previous quarter. While we acknowledge the potential of SANUWAVE Health, Inc. (NASDAQ:SNWV) 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 Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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