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 Torrid Holdings Inc. (NYSE:CURV). Torrid Holdings Inc. (NYSE:CURV) is a retailer that provides apparel, intimates, and accessories for curvy women. The one-month return for Torrid Holdings Inc. (NYSE:CURV) was -20.91%, and its shares lost 80.27% over the last 52 weeks. On December 23, 2025, Torrid Holdings Inc. (NYSE:CURV) stock closed at $0.9807 per share, with a market capitalization of $97.282 million.
Minot Light Capital Partners stated the following regarding Torrid Holdings Inc. (NYSE:CURV) in its third quarter 2025 investor letter:
Torrid Holdings Inc. (NYSE:CURV): Our biggest negative contributor this quarter was Torrid Holdings. We reviewed our thesis on Torrid in our last quarterly letter and that has not changed, so we will not rehash that here. In the interval between that letter and this update, the company did report earnings. Though we did not view the results as a disaster, numbers did come down due to tariff impacts and a weaker consumer. That said, the key levers to our differing perspective, which center around projected margin expansion from eliminating the weaker portion of their store base, revenue retention from closed stores going to adjacent stores or online, and additional margin expansion from growing sub-brand sales would appear to be generally intact. The company continues to project meaningful EBITDA margin and free cash flow expansion into 2026 and beyond due to these factors. However, we will now see that expansion off of a lower base.