Collegium Pharmaceutical, Inc. (COLL) Surged Following Record Quarterly Results

Third Avenue Management, a New York City-based investment firm, published its fourth-quarter 2025 investor letter for the “Third Avenue Small-Cap Value Fund. " A copy of the letter is available for download here. In the quarter, the Fund returned 4.62%, outperforming the MSCI USA Small-Cap Value Index (the “Index”), which gained 3.13%. For the year 2025, the Fund delivered a 14.04% return, surpassing the 10.80% return of the index. The Fund primarily invests in publicly traded companies with boards of directors, sometimes controlled by individuals or families, and management teams that operate independently from the Fund. Reviewing 2025, the firm is pleased with the Fund's performance, operational success, and shareholder value creation, and is optimistic about 2026. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Third Avenue Small-Cap Value Fund highlighted Collegium Pharmaceutical, Inc. (NASDAQ:COLL) as one of its leading contributors. Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is a specialty pharmaceutical company that focuses on developing medicines for pain management. On March 09, 2026, Collegium Pharmaceutical, Inc. (NASDAQ:COLL) stock closed at $37.27 per share. One-month return of Collegium Pharmaceutical, Inc. (NASDAQ:COLL) was -20.28%, and its shares gained 24.27% over the past 52 weeks. Collegium Pharmaceutical, Inc. (NASDAQ:COLL) has a market capitalization of $1.183 billion.

Third Avenue Small-Cap Value Fund stated the following regarding Collegium Pharmaceutical, Inc. (NASDAQ:COLL) in its fourth quarter 2025 investor letter:

"U.S. pain medication specialist, Collegium Pharmaceutical, Inc. (NASDAQ:COLL), also generated a strong performance contribution in the quarter after producing record quarterly revenue and disclosing improved operating income guidance and a new share repurchase authorization."

Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 34 hedge fund portfolios held Collegium Pharmaceutical, Inc. (NASDAQ:COLL) at the end of the fourth quarter, up from 27 in the previous quarter. While we acknowledge the potential of Collegium Pharmaceutical, Inc. (NASDAQ:COLL) 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 Collegium Pharmaceutical, Inc. (NASDAQ:COLL) and shared a list of cheap pharmaceutical stocks to buy according to hedge funds. 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.