Arquitos Capital Up 67% YTD, 14% CAGR Since Inception; Bullish On These Biotech Stocks

Arquitos Capital's commentary for the third quarter ended September 30, 2025.

Dear Partner:

Arquitos returned 29.6% net of fees in the third quarter of 2025, bringing the year-to-date return to 66.8%. Individual returns will vary based on timing of investment. Please check your statement for specific results. See page five for more detailed performance information. I have always tried to invest on an absolute basis rather than a relative one. Over the long term, my goal is to generate strong, positive performance regardless of what the broader markets are doing. If markets decline, my objective isn’t simply to lose less, it is to make money.

That said, it is important to think about opportunity cost in your allocations the same way I think about opportunity cost when selecting individual investments. While I have historically avoided benchmarking the Arquitos portfolio, conversations with several of you have helped me better appreciate an investor’s desire to compare our results to a relevant index. The question, of course, is which market benchmark makes sense? In the past, I have said that if you want a simple comparison, you can always look to the S&P 500. But given the types of holdings in our portfolio, that is not an appropriate point of reference.