Silver Beech Capital’s Updates on WillScot (WSC)

Silver Beech Capital, a value-oriented investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Since its inception, Silver Beech has achieved a net annualized return of 19.5%, representing an annualized outperformance of 5.3% over the S&P 500. The fund was up 3.5% through the third quarter of 2025, compared to the S&P 500’s 14.8% and the Russell 2000’s 10.4% YTD returns. The S&P 500 returned +8.1% in Q3, driven by the market’s rebound following the volatility on Liberation Day. However, the current market expansion is the result of monetary easing and strong technology earnings. The firm believes that the current equity valuation is largely disconnected from fundamentals. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Silver Beech Capital highlighted stocks such as WillScot Holdings Corporation (NASDAQ:WSC). WillScot Mobile Mini Holdings Corp. changed its name to WillScot Holdings Corporation (NASDAQ:WSC) in July 2024. WillScot Holdings Corporation (NASDAQ:WSC) is a company that offers workspace and portable storage solutions. The one-month return of WillScot Holdings Corporation (NASDAQ:WSC) was 1.56%, and its shares lost 42.13% of their value over the last 52 weeks. On December 22, 2025, WillScot Holdings Corporation (NASDAQ:WSC) stock closed at $19.56 per share, with a market capitalization of $3.561 billion.

Silver Beech Capital stated the following regarding WillScot Holdings Corporation (NASDAQ:WSC) in its third quarter 2025 investor letter:

“At its current price, we believe WillScot Holdings Corporation (NASDAQ:WSC) represents the most asymmetric opportunity in the portfolio. Following a ~40% decline from our cost basis, the stock has derated significantly from a ~10x TEV/EBITDA (2024E) multiple to ~7.5x (2025E), and a ~7% free cash flow yield (2024E) to ~13% (2025E). At this valuation, the market is pricing WillScot as a business in secular decline. This stands in stark contrast to our view of WillScot as a compounding industrial services franchise with a dominant market position.

We approach this update with humility regarding our timing. In our Q1 2024 thesis, we posited that modular unit utilization1 was nearing a cyclical trough. We were too early in this prediction: • Q1 2024 View: Utilization at 62.5% (96k units) was perceived as close to the floor. • Current Reality: Utilization has drifted down to 59.3% (89k units)…” (Click here to read the full text)

Is WillScot Holdings Corporation (WSC) The Mid-Cap Stock Insiders Are Buying Recently?

WillScot Holdings Corporation (NASDAQ:WSC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 45 hedge fund portfolios held WillScot Holdings Corporation (NASDAQ:WSC) at the end of the third quarter, compared to 49 in the previous quarter. While we acknowledge the risk and potential of WillScot Holdings Corporation (NASDAQ:WSC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WillScot Holdings Corporation (NASDAQ:WSC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered WillScot Holdings Corporation (NASDAQ:WSC) and shared the list of worst-performing stocks that pay dividends. In its Q3 2025 investor letter, Madison Small Cap Fund highlighted its confidence in WillScot Holdings Corporation’s (NASDAQ:WSC) business, leadership and upside potential. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.