White Falcon Capital Management’s Q4 2025 Investor Letter

White Falcon Capital Management, an investment fund manager, released its fourth-quarter 2025 investor letter. The White Falcon portfolio returned 5.6% (net of fees) in Q4 2025, resulting in a yearly return of 28.4%. The year has been notable, particularly with the “tariff tantrum” in April 2025 that saw markets drop nearly 20%, now fading into the past. Overall, the portfolio performed well, with only a few companies affecting a solid majority of positive results. The White Falcon portfolio consists of 20-25 carefully selected stocks that align with its quality and valuation standards, focusing on generating positive absolute returns adjusted for risk over a full market cycle. The portfolio’s preferred metric, the rolling three-year annualized return, currently stands at 25.9% CAGR, outpacing most major indices, including the S&P 500. As a long-term compounder, the firm is optimistic about its long-term prospects. The firm anticipates a significant increase in leverage associated with AI and expects major private companies to go public through IPOs. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.

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