1 Main Capital, a boutique investment firm, recently released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. 1 Main Capital Partners returned 15.0% in Q2 2026, compared to 15.2% and 21.6% for the S&P 500 (SPX) and Russell 2000 (RTY), respectively. SPX and RTY delivered their best performance since 2026 driven by the resolution of the Iran conflict and increased oil flow through the Strait of Hormuz and strong demand for AI infrastructure. However, the fund avoided direct exposure to the booming AI semiconductor trade, citing valuation and durability concerns, but remains optimistic about AI’s long-term productivity impact. The firm remains committed to its investment principles, focusing on solid businesses and maintaining a strategic approach. While, optimism continues about long-term productivity gains from technology, which could strengthen GDP growth and positively impact the portfolio. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, 1 Main Capital highlighted DiaMedica Therapeutics Inc. (NASDAQ:DMAC). DiaMedica Therapeutics Inc. (NASDAQ:DMAC) is a clinical stage biopharmaceutical company developing therapies to improve the lives of people suffering from severe ischemic diseases. On July 31, 2026, DiaMedica Therapeutics Inc. (NASDAQ:DMAC) closed at $6.34 per share, reflecting a market capitalization of $341.62 million. DiaMedica Therapeutics Inc. (NASDAQ:DMAC) posted a one-month return of -19.41%, while its shares gained 48.05% over the past 52 weeks.
1 Main Capital stated the following regarding DiaMedica Therapeutics Inc. (NASDAQ:DMAC) in its Q2 2026 investor update:
“The Fund holds an opportunistic position in DiaMedica Therapeutics Inc. (NASDAQ:DMAC), a clinical-stage biotechnology company that has developed DM199, a recombinant (synthetic) form of the naturally occurring tissue kallikrein-1 (KLK1) protein — a critical molecular trigger for blood-vessel dilation.
Naturally derived KLK1 is extracted from human urine and has treated more than a million stroke patients annually in China, with a consistent safety profile across more than a decade of real-world use at scale. In fact, a 2021 Chinese Phase 4 study of over 1,200 stroke patients showed clinically meaningful efficacy, and a pooled analysis of 16 trials across 1,300+ patients showed KLK1-treated patients achieving significantly better long-term function — speaking, walking, and living independently — reflected in a meaningful shift on the modified Rankin Scale (mRS), the global standard for measuring stroke recovery. While this data doesn’t support US approval on its own — it’s largely published without FDA-caliber trial rigor, and the drug isn’t molecularly identical to DM199 — it represents a much stronger starting point than most Phase 2 biotech theses…” (Click here to read the full text)