Laughing Water Capital’s Q4 2025 Investor Letter

Laughing Water Capital, an investment management company, released its fourth-quarter 2025 investor letter. In the quarter, Laughing Water Capital returned ~6.8%, bringing the full-year returns to ~3.9% net of fees and expenses. In comparison, the SP500TR and R2000 returned approximately 2.7% and 2.2%, respectively, in the quarter, and finished the year up by 17.9% and 12.8%, respectively. The Fund outperformed the indexes last year, but it has lagged behind them in the current year. However, what really matters is the cumulative returns over the long run, as volatility tends to smooth out...