Mott Capital Management’s Q4 2025 Investor Letter

Mott Capital Management, an investment management company, released its Q4 2025 investor letter. Stock markets paused in Q4, with the S&P 500 trading sideways from October to year-end. In 2025, the MCM Thematic Growth Strategy gained 11.98%, underperforming the S&P 500’s 17.88%, despite some improvements. The AI boom boosted the S&P 500 in 2025. Concerns for AI and related companies include rising debt and the urgent need for R&D investments in advanced software and data centers. Software stocks sharply declined in 2026 due to falling valuations and rising concerns about AI cannibalization. The letter also discussed the effects of the changing trend on the balance in the Thematic Growth Strategy. The Strategy aims to ease the load on mega-cap tech stocks and expects other sectors to become increasingly sensitive in the coming months. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

A copy of Mott Capital Management’s Q4 2025 investor letter can be downloaded here.