What Makes Finch Therapeutics (FNCH) a Worthy Investment?

Arquitos Capital Management, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the third quarter, the fund delivered a net return of 29.6% bringing year-to-date gains to an impressive 66.8%. Arquitos Capital Management is an unconventional hedge fund that focuses on a select group of companies. They are also prepared to hold these companies for many years, sometimes even decades, as their businesses grow and the market eventually realizes their worth. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Arquitos Capital Management highlighted stocks such as Finch Therapeutics Group, Inc. (OTC:FNCH). Finch Therapeutics Group, Inc. (OTC:FNCH) is a clinical-stage microbiome therapeutics company. The one-month return for Finch Therapeutics Group, Inc. (OTC:FNCH) was -3.59%, and its shares gained 16.50% over the last 52 weeks. On December 10, 2025, Finch Therapeutics Group, Inc. (OTC:FNCH) stock closed at $13.98 per share, with a market capitalization of $22.449 million.

Arquitos Capital Management stated the following regarding Finch Therapeutics Group, Inc. (OTC:FNCH) in its third quarter 2025 investor letter:

“Finch Therapeutics Group, Inc.’s (OTC:FNCH) share price rose to $12.28 at the end of the third quarter, up from $11.30 at the start of the year. As a reminder, Finch won a jury trial in August 2024 against Ferring Pharmaceuticals, with the jury finding that Ferring infringed three of Finch’s patents. The verdict awarded Finch approximately $30 million in a one-time licensing fee and pre-trial interest, plus ongoing royalties to be determined by the judge and post-trial interest. Importantly, the jury also found willful infringement, opening the door for enhanced damages up to three times the jury award.

Finch Therapeutics Group, Inc. (OTC:FNCH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Finch Therapeutics Group, Inc. (OTC:FNCH) 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.