This Hidden Gem Biotech is the Only Small-Cap Among Billionaire Investor Leon Cooperman's Top Market-Beating Picks

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Billionaire investor Leon Cooperman's portfolio significantly outperforms major indices with 15% YTD gains, while highlighting DiaMedica Therapeutics as a unique small-cap biotech opportunity

Legendary investor Leon Cooperman, chairman and CEO of Omega Family Office, made headlines during his September 8th appearance on CNBC's "Squawk Box," showcasing a portfolio that has dramatically outperformed the broader market in 2025. With year-to-date gains of approximately 15%, Cooperman's carefully selected holdings have beaten the NASDAQ, S&P 500, and Dow Jones Industrial Average, demonstrating the value of active stock selection in today's volatile market environment.

Portfolio Performance Reveals Strategic Diversification

Cooperman's highlighted stock picks showcase an impressive range of returns, with his portfolio averaging an outstanding 32.7% year-to-date performance. The standout performers include MP Materials Corp (MP) with an extraordinary 282.37% gain, Mr. Cooper Group (COOP) delivering 127.73% returns, and Mirion Technologies (MIR) contributing 33.98% gains.

The portfolio's success stems from strategic diversification across multiple sectors, including technology, financial services, energy, healthcare, and materials. This approach has enabled Cooperman to capture growth while managing risk across various market segments. Notably, six of his twelve highlighted stocks have generated positive returns, with several delivering exceptional performance that far exceeds broader market indices.

DiaMedica Therapeutics: The Hidden Gem in Cooperman's Portfolio

Among Cooperman's diverse holdings, DiaMedica Therapeutics Inc. (Nasdaq: DMAC) stands out as a particularly compelling investment opportunity for several reasons. With a 23.05% year-to-date return, DMAC ranks fourth among Cooperman's highlighted picks, but its unique characteristics make it especially noteworthy for growth-oriented investors.

The Only Small-Cap, The Only Biotech

DiaMedica Therapeutics holds two distinctive positions within Cooperman's portfolio that signal significant confidence in the company's potential:

Exclusive Small-Cap Status: With a market capitalization of just $350 million, DMAC is the only stock under $1 billion in Cooperman's highlighted portfolio. This positioning is particularly significant coming from an investor known for his expertise in identifying undervalued opportunities before they achieve broader market recognition.

Sole Biotech Representative: DiaMedica is the only biotechnology company among Cooperman's twelve featured holdings, representing his conviction in the company's clinical development program and commercial potential. This exclusive biotech allocation suggests Cooperman sees exceptional promise in DMAC's therapeutic pipeline.

Strong Performance Against Established Giants

DiaMedica's 23.05% year-to-date performance becomes even more impressive when compared to much larger holdings in Cooperman's portfolio. The company has outperformed several multi-billion dollar stalwarts, including:

• GE Healthcare Technologies (GEHC, $34.88B market cap): -2.41%
• Apollo Global Management (APO, $76.42B market cap): -18.71%
• Fidelis Insurance Holdings (FIHL, $1.81B market cap): -2.42%

This outperformance demonstrates that DiaMedica's smaller size and focused biotech strategy can generate superior returns compared to established, large-cap alternatives.

DiaMedica's Revolutionary Therapeutic Platform

DiaMedica Therapeutics has positioned itself at the forefront of treating critical vascular diseases through its lead candidate, DM199, the first pharmaceutically active recombinant form of the KLK1 protein. This innovative approach addresses significant unmet medical needs in acute ischemic stroke and preeclampsia treatment.

Addressing Large Market Opportunities

The company's focus on acute ischemic stroke and preeclampsia represents substantial market opportunities. Acute ischemic stroke affects hundreds of thousands of patients annually in the United States alone, while preeclampsia complications affect up to 8% of pregnancies worldwide. DM199's potential to restore healthy blood flow and reduce inflammation positions it as a transformative treatment for these serious conditions.

Robust Intellectual Property Protection

DiaMedica has secured comprehensive patent protection for its platform, with composition of matter and delivery patents protected until 2033, and additional patents covering dose, route of delivery, formulation, and indication extending to 2039 in the United States. This intellectual property portfolio provides substantial competitive advantages and potential revenue protection.

Proven Manufacturing Capabilities

The company has licensed proprietary cell line technology that efficiently produces large amounts of KLK1, with patent-protected manufacturing processes covering all vectors and reagents needed for commercial-scale production. This manufacturing foundation positions DiaMedica for successful commercialization if clinical trials prove successful.

Investment Implications and Market Signal

Cooperman's inclusion of DiaMedica Therapeutics as his only small-cap biotech holding sends a powerful signal to the investment community. Known for his rigorous analysis and successful track record spanning decades, Cooperman's confidence in DMAC suggests the company possesses characteristics that align with his value-oriented investment philosophy.

The 23.05% year-to-date performance, combined with the company's unique position in treating vascular diseases, makes DiaMedica an intriguing opportunity for investors seeking exposure to innovative biotechnology with significant upside potential.

Risk Considerations

While DiaMedica's inclusion in Cooperman's portfolio and strong year-to-date performance are positive indicators, potential investors should consider that biotechnology investments carry inherent risks related to clinical trial outcomes, regulatory approvals, and market adoption. The company's clinical-stage status means that future performance will largely depend on successful execution of its development programs.

Conclusion: A Unique Opportunity in Plain Sight

Leon Cooperman's track record of identifying undervalued opportunities before they achieve mainstream recognition makes his decision to feature DiaMedica on national television particularly noteworthy. Among the twelve stocks he specifically chose to highlight on CNBC as market-beating performers, DiaMedica's status as the exclusive small-cap biotech selection speaks volumes about its potential.

DiaMedica Therapeutics' combination of innovative technology, substantial market opportunities, strong intellectual property protection, and proven outperformance against larger competitors featured alongside it makes this a compelling investment opportunity for those seeking exposure to cutting-edge biotechnology.

As the only sub-$1 billion market cap stock and sole biotech representative among the holdings Cooperman chose to showcase on national television, DiaMedica Therapeutics deserves serious consideration from investors looking to capitalize on the next wave of medical innovation. With DM199's potential to transform treatment for acute ischemic stroke and preeclampsia, the company represents exactly the type of transformative opportunity that has made Cooperman one of the most respected investors of his generation.

This analysis is based on publicly available information and should not be considered personalized investment advice. Potential investors should conduct their own due diligence and consult with financial advisors before making investment decisions.

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