Core Strategy
| DECEMBER 2025 | 4TH QTR | YTD | 1-YR | 3-YR | 5-YR | 10-YR | 15-YR | 20-YR | 25-YR | SINCE INCEPTION 06/01/87 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GROSS OF FEES | 0.67% | 0.29% | 14.01% | 14.01% | 11.76% | 8.46% | 8.42% | 7.65% | 7.19% | 8.07% | 9.73% |
| NET OF FEES | 0.63% | 0.15% | 13.37% | 13.37% | 11.12% | 7.84% | 7.77% | 6.98% | 6.51% | 7.34% | 8.94% |
| S&P 500 | 0.06% | 2.66% | 17.88% | 17.88% | 23.01% | 14.42% | 14.82% | 14.06% | 11.00% | 8.83% | 10.85% |
| 50% S&P 500/50% GLOBAL AGG. | 0.17% | 1.49% | 13.44% | 13.44% | 13.44% | 6.20% | 8.30% | 7.84% | 7.22% | 6.60% | NA |
| BLOOMBERG GLOBAL AGGREGATE | 0.26% | 0.24% | 8.17% | 8.17% | 3.98% | -2.15% | 1.26% | 1.14% | 2.49% | 3.34% | NA |
The Core strategy was up 0.7% in December and up 14% for 2025 – doing a good job keeping up with equities with just over half the exposure and less volatility. Every sleeve of the portfolio did its job during the year, with our long positions far outpacing our shorts (both detailed below), while fixed income holdings were up over 9%.
Heading into 2026 the Major Trend Index remains at High Neutral, with recent gains in the Cyclical (macro) and Technical categories reinforcing that reading. Despite nosebleed valuations the path of least resistance for equities remains to the upside -with net equity exposure at 57% we’re positioned to benefit if the bull market continues, but we remain poised to lower exposure when the time comes.
Select Industries Strategy
| DECEMBER 2025 | 4TH QTR | YTD | 1-YR | 3-YR | 5-YR | 10-YR | 15-YR | 20-YR | 25-YR | SINCE INCEPTION 01/01/96 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GROSS OF FEES | 0.86% | 2.01% | 21.58% | 21.58% | 19.74% | 14.76% | 13.72% | 13.48% | 10.55% | 10.12% | 14.45% |
| NET OF FEES | 0.81% | 1.88% | 20.85% | 20.85% | 18.71% | 13.71% | 12.64% | 12.44% | 9.63% | 9.16% | 13.44% |
| S&P 500 | 0.06% | 2.66% | 17.88% | 17.88% | 23.01% | 14.42% | 14.82% | 14.06% | 11.00% | 8.83% | 10.35% |
| S&P 400 MIDCAP INDEX | 0.07% | 1.64% | 7.50% | 7.50% | 12.56% | 9.12% | 10.72% | 10.71% | 9.44% | 9.27% | 11.06% |
| LIPPER MULTI-CAP CORE | 0.42% | 3.16% | 17.52% | 17.52% | 20.70% | 12.19% | 13.28% | 12.23% | 9.83% | 8.26% | 9.53% |
The Select Industries strategy was up 0.9% in December, closing out the year on a strong note as most indexes traded sideways or down for the month. Cyclical industries continued to perform well, with Banking (Diversified, Investment & Brokerage) and Auto Parts large contributors. Education Services and Precious Metals also outperformed for the month.
For the full year 2025 Select Industries was up 21.6% - a very strong year considering the market was driven by large caps and speculative names within small and mid caps; neither of which we are overweight. As is usually the case, performance came down to getting thematic calls correct. This year that meant two high conviction allocations that were two of the top three performing groups in our 120 group investment universe: Precious Metals (+167%), which rallied as gold moved higher throughout the year, and Electronic Manufacturing Services (+60%), which directly benefits from AI-driven hyperscaler capital expenditures. Diversified Banks, Investment Banking & Brokerage, and Health Care Distributors were also substantial contributors.
We said goodbye to two prominent industry holdings to close out 2025—selling Big Communication Services and Systems Software in December. Both were highly contributive to performance since their purchases in early 2023 and helped position us for the growth rally that was re-emerging around that same time. Air Freight & Logistics, Interactive Media, and Managed Health Care were added to the portfolio during December.
Notable portfolio overweights include Financials, Health Care, Industrials, and Materials. Communication Services and Information Technology are underweights, while there is zero exposure to Consumer Staples, Utilities, and Real Estate.
Grizzly Short Strategy
| DECEMBER 2025 | 4TH QTR | YTD | 1-YR | 3-YR | 5-YR | 10-YR | 15-YR | 20-YR | 25-YR | SINCE INCEPTION 11/01/90 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GROSS OF FEES | 0.43% | 1.08% | -0.52% | -0.52% | -7.97% | -4.03% | -13.12% | -12.20% | -10.66% | -8.74% | -7.58% |
| NET OF FEES | 0.32% | 0.76% | -1.77% | -1.77% | -9.13% | -5.22% | -14.18% | -13.21% | -11.77% | -9.86% | -8.64% |
| S&P 500 | 0.06% | 2.66% | 17.88% | 17.88% | 23.01% | 14.42% | 14.82% | 14.06% | 11.00% | 8.83% | 11.28% |
| S&P 400 MIDCAP INDEX | 0.07% | 1.64% | 7.50% | 7.50% | 12.56% | 9.12% | 10.72% | 10.71% | 9.44% | 9.27% | NA |
| LIPPER DEDICATED SHORT BIAS | 1.00% | -1.58% | -16.77% | -16.77% | -19.85% | -14.97% | -20.27% | -20.01% | -17.28% | NA | NA |
The Grizzly strategy was up 0.4% in December and down 0.5% for 2025 – impressive performance for a 100% short strategy during a strong year for equities. We did a good job sidestepping the speculative move among small and mid caps, while uncovering pockets of weakness elsewhere. Stock selection was also key: the strategy had over 30 individual shorts that were down 20% or more throughout the year. From an industry perspective, Cargo, Household Products, Personal Products, Insurance Brokers, and Distillers were positive contributors.
The strategy is overweight Consumer Discretionary, Industrials, Financials, and Materials. The strategy is underweight Information Technology and Communication Services, and Health Care. Restaurants, Application Software, Semiconductors, and Asset Management are the largest industry exposures.
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