Alluvial Capital Management, an investment advisory firm, recently released its third-quarter 2025 investor letter. The firm reported that its fund rose by an impressive 15.5% in the quarter, bringing the year-to-date returns to 33.6%. This strong performance significantly outperformed the relevant benchmark indexes, marking it as the fund’s third-best quarterly result in its 9-year history. Investors can download a copy of the letter to gain insights into the fund’s top 5 holdings for 2025.
One of the highlighted stocks in Alluvial Capital Management’s third-quarter 2025 investor letter is FitLife Brands, Inc. (NASDAQ:FTLF). FitLife Brands is a nutritional supplements provider that saw a one-month return of -0.45% and a 26.03% gain in share value over the last 52 weeks. As of October 28, 2025, FitLife Brands’ stock closed at $19.80 per share, with a market capitalization of $185.943 million.
The investor letter provided further details on FitLife Brands, Inc. (NASDAQ:FTLF), stating, “FitLife Brands, Inc. (NASDAQ:FTLF) also had a busy August, announcing and then closing a deal to acquire Irwin Naturals. Irwin is a major vitamins and supplements producer that decided to expand into ketamine therapy clinics. The results were disastrous, and FitLife was able to acquire Irwin Naturals’ assets (not including the shuttered clinics) out of bankruptcy. The $42.5 million purchase price was funded with balance sheet cash and bank debt. At $18, FitLife shares are trading at around 11x my estimate of 2026 free cash flow.”
While FitLife Brands, Inc. (NASDAQ:FTLF) is not among the 30 most popular stocks among hedge funds, the firm believes in its investment potential. However, they also see greater upside potential and lower downside risk in certain AI stocks. For investors seeking an undervalued AI stock that could benefit from Trump-era tariffs and the onshoring trend, they recommend checking out their free report on the best short-term AI stock.
In conclusion, Alluvial Capital Management’s strong performance in the third quarter of 2025, particularly with stocks like FitLife Brands, Inc. (NASDAQ:FTLF), showcases the firm’s expertise in selecting promising investment opportunities. Investors can learn more about their top holdings and investment strategies by downloading a copy of their investor letter.
