My Performance recap (Benchmark: S&P 500)
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2021: -36% (+27%)
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2022: -76% (-19%)
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2023: +80% (+24%)
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2024: +104% (+23%)
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2025 YTD: +79% (+10%)
Current portfolio holdings:
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CRMD 11%
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RDDT 11%
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ALAB 10%
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DAVE 10%
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TARS 9%
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CRDO 8%
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ETON 8%
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DCTH 7%
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NVDA 6%
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MDGL 6%
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AVDL 5%
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HALO 5%
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HIT 5%
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MNDY 4%
Portfolio is currently 105% long and has 14 positions.
Changes this month
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New Starter Position:
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DAVE
- Between SEZL and DAVE, DAVE seems more attractive to me and is putting up better numbers.
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MDGL
- Biotech early stage commercial rollout. Showing explosive growth and getting close to profitability
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HALO
- Biotech firm with superior product and has steady growth. Highly profitable with great margins, had a good quarter.
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AVDL
- Early stage pharma going through commercial rollout. Have a unique proposition for sleep disorders. High margins and just went fcf positive.
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MNDY
- I am trying this selling puts to generate income for my portfolio. This didn’t go as planned and I got assigned. Happy to hold as MNDY seems cheap to me now. But will manage this position out. Not going to be a long term hold due to lower methodology score.
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Sold:
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HIMS
- End of an era! HIMS was my longest holding since 2022. I know it seems funny to a lot of you on this board who are holding positions 10+ years but I started this style of investing in 2021 so this was my longest hold. I still think HIMS will do well in the long run. But for now, they will need to transition from GLP business to their core offerings. This will take, i think, a couple of quarters of pain or meandering. Also, the score went sub 40 and hence I am out.
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SEZL
- The free cash flow hit combined with the no raise in guide was too much for me. With DAVE’s numbers looking a lot better, I switched ships.
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UPST
- First, FCF is trending the wrong way and second, I needed capital for other more interesting opportunities. Score went south of 40 as well, so I am out.
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My holdings - historical view:
This is to give a perspective on how I manage my positions and who often they rotate from my portfolio.
My methodology current scores:
This is formula based and I use this score as my ntm fcf multiple. That way every business is being evaluated on the same scale
My 3 year returns expectation from my holdings:
This is based on the score the valuation possibility. Obviously, these seem rather large returns but this gives an idea of what the landscape looks like using the same scale. Needless to say, I would be happy with one third of these returns.
A visualization of Nasdaq since April 8th lows vs. AI/Payments, Healthcare and my top 10 - parts of portfolio:
This is helpful to me to realize when what parts of my portfolio is getting hot or cold. Also, it gives a clear indication if I am beating the index or not.
My Current Tiers:
Tier 1: (15% allocation)
- CRDO, ALAB
Tier 2: (10% allocation)
- CRMD, TARS, ETON, NVDA, RDDT, DCTH, DAVE
Tier 3: (5% allocation)
- MDGL, HIT, HALO, AVDL, MNDY
Why I own what I own:
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CRMD - 11%
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CorMedix did really well in this earnings cycle. The markets had a bad reaction due to the acquisition of Melinta Therapeutics but I think it is good for the longer term. The business is highly profitable and has S curve growth right now. If they hit their numbers, I think this gets re-rated.
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Their DefenCath launch is going exceptionally well and the studies they are putting out places them as a differentiator in this space.
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Adding Melinta adds 7 more products that are commercial stage to their books. Again, the revenue is more stable and it should put a floor on the stock going forward. But DefenCath adoption is still going to be the main story if they will hit the S curve growth.
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RDDT - 11%
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As I mentioned last time, I think Reddit is sitting on AI goldmine in terms of actual user insights that everyone wants access to. There are so many use cases for their data.
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Following the great earnings cycle in late July, Reddit hasn’t slowed down. It’s sitting at 25x ltm sales but as it start scaling FCF from 20’s to 30%+, the premium for this business should go up. A 30 to 50 times sales is highly possible as people pile into these high performers with a lot of AI tailwind.
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ALAB - 10%
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ALAB had a monster quarter. It achieved very high profitability numbers and did 20% QoQ growth.
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It continues to expand it’s product portfolio and strengthen it’s strategic partnership with AI leaders. The guide raise was great too. Astera Labs is hitting on all cylinders currently.
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The only concern I have is valuation. And that’s not a bad place to be
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DAVE - 10%
- DAVE continues to put up great numbers with the BNPL tailwind in play. With this quarters earnings drop, I got an opportunity to get in. Also, I feel going forward this is a better opportunity than Sezzle.
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TARS - 9%
- Finally after a 10 month base, TARS broke out aided by a pretty good quarter. The business is still growing extremely fast and has very high margins. They are the only game in town and has good patent protection for few years. XDEMVY is establishing itself as a standard of care for Demodex blepharitis.
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CRDO -8%
- With all AI related businesses have a great quarter, I expect CRDO to put up some stellar numbers. Will be looking for three main things: raise in guide, can they maintain 30% fcf range and customer concentration.
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ETON - 8%
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They focus on Rare Diseases and Underserved Populations. Eton leverages the FDA’s 505(b)(2) pathway, which allows for faster and less costly development by using existing data from approved drugs. Their key secret sauce is speed to market and their ability to acquire orphan drugs.
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ETON had a good quarter. They did not raise guide to my expectation. But overall execution was pretty good. The cash flow engine has started to kick in and I think market is going to take notice if they can keep this up.
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DCTH - 7%
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Delcath has been consolidating for a year now. A lot of overhang due to medicare coverage concerns. But the product is still one of the best and it continues to execute very well their commercialization process.
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Again, same game plan here. They are starting to get highly profitable which I believe markets will take notice if they trend in this path. Growth is still extremely high.
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NVDA - 6%
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Nvidia had a great quarter. This is the most stable part of my portfolio. I think NVDA has a shot at 10T market cap in coming years.
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My only concern now is they are struggling to beat the analyst expectations. The raises are not that significant anymore. If they stop raising guide in a meaningful way, I think I will get out. For now, I think it is still a 20-30% return stock per year.
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MDGL - 6%
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Madrigal Pharmaceuticals (NASDAQ: MDGL) addresses metabolic dysfunction-associated steatohepatitis (MASH), a high-growth market with significant unmet medical needs. The company’s flagship drug, Rezdiffra (resmetirom), is the first FDA-approved oral therapy for MASH with moderate to advanced liver fibrosis (F2–F3), positioning Madrigal as a first-mover in a market projected to exceed $48 billion by 2035.
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When you are an early stage commercial pharma and come out to beat expectations by 31%, you got my attention. At 15 p/s it’s too cheap as I expect them to grow 150% over the next 12 months. I think they go fcf+ in next 2-3 quarters. Let’s see how it goes.
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AVDL - 5%
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Avadel Pharmaceuticals ($AVDL) experienced commercial success and growth potential of its flagship product, LUMRYZ, a once-nightly sodium oxybate for the treatment of cataplexy and excessive daytime sleepiness in narcolepsy. The company’s strong Q2 2025 financial performance, with $68.1 million in net revenue (up 64% year-over-year) and a shift to profitability ($9.7 million net income), underscores LUMRYZ’s robust market adoption, with 3,100 patients enrolled by June 30, 2025, a 63% increase from the prior year.
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What I like about Avadel is it just went fcf positive. With almost 90% margins, I think they can get to 30% fcf in the next 12 months. I know it’s optimistic but possible. They have a 6 p/s ltm handle. I think if they execute they should get re-rated.
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HALO - 5%
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Halozyme Therapeutics, Inc. ($HALO) presents a compelling investment opportunity due to its innovative ENHANZE® drug delivery technology, which enhances the subcutaneous administration of biologics, driving robust revenue growth through royalty streams from major pharmaceutical partners.
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They are a steady grower and their overall FCF numbers are quite strong. I think the 16 p/fcf is quite a deal given they are still growing at 30%+
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They also had a good beat and raise which caught my attention.
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HIT - 5%
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I really like that they are a AI driven platform play and has incredible speed compared to it’s legacy competitors.
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With the numbers Health in Tech is putting up, it should be able to get back up to it’s March breaking point, which is still about 150%+ from today’s close.
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MNDY - 4%
- This was an assignment from selling puts experiment. SaaS is out of favor and Monday paid the price even though I thought they had descent results. So anyway, I am happy to hold on as I expect prices to recover. But this is not a long term hold for me. I will recover my losses and sell out of this position or if a better opportunity shows up.
Wrapping Up
Major upheaval in my portfolio this past month. 37% of my holdings were replaced as with the departure of HIMS and SEZL, it was an end of an era. HIMS had been my longest holding ever, so it’s a bit weird to see my portfolio being anchored by CRMD - who??!!
August was really good for my portfolio. Markets moved about 4% but my portfolio put up a 17% month. Most of the returns were contributions from the earnings season. My healthcare part of the portfolio finally woke up and contributed this month more than the AI/Payments side. And that made a big difference.
Always a privilege to contribute here. Thank you for reading. Cheers!
Here’s my links to my previous portfolio reviews: