Q4-2025 Client Commentary

Quarterly Investment Commentary – Q4 2025

Dear Clients and Friends,

As we concluded the fourth quarter of 2025 on a positive note, Wisconsin Capital Management is pleased to have competitively participated in a strong upward market for the third consecutive year. Even in times of celebration, we continue to reiterate our core philosophy. While our portfolios are positioned to benefit during growth years, they are designed even more deliberately to withstand the inevitable market downturns that historically occur approximately twice every ten years—always with the primary goal of preserving your principal.

Through our disciplined and focused individual security selection process, we invest in companies we believe have the strength and resilience to navigate nearly any macroeconomic environment. As we concluded the fourth quarter of 2025, we believed it was valuable to step back from the daily market noise and focus on the broader forces that meaningfully shaped the quarter, as well as how we are positioning portfolios moving forward.

The dominant theme of Q4 was confirmation rather than surprise. Inflation continued to moderate, economic growth slowed but remained positive, and the Federal Reserve increasingly signaled that policy is likely at or near its terminal point. While short-term interest rate cuts were frequently debated in headlines, markets began to focus less on if rates eventually decline and more on how long restrictive policy must remain in place to ensure price stability.

Equity markets reflected this shift. Performance was selective, with leadership concentrated in companies demonstrating real earnings durability rather than speculative growth. The market’s largest beneficiaries continued to be businesses tied to artificial intelligence infrastructure, automation, and productivity-enhancing capital investment. However, Q4 also showed early signs of broadening participation, particularly among companies with strong free cash flow, reasonable valuations, and less sensitivity to interest rates.

At the same time, valuations remained uneven. Certain areas of the market now price in near-perfect outcomes, while other high-quality businesses trade at discounts due to cyclical concerns or temporary uncertainty. This divergence reinforces our belief that disciplined security selection matters far more today than simply owning “the market.”

Fixed income such as bonds continued its quiet but important rehabilitation. For the first time in many years, bonds are once again serving their intended purpose—providing income, stability, and portfolio balance. Starting yields remain attractive, and we believe this improves forward-looking return expectations while reducing the need for excessive risk elsewhere in portfolios.

Geopolitical risk, fiscal deficits, and political uncertainty heading into 2026 added to volatility at times, but markets ultimately treated these as known risks, not systemic threats. History reminds us that markets have navigated wars, elections, policy shifts, and recessions before—and patient investors have been rewarded for staying invested through them.

Throughout the quarter, we remained focused on what we can control: asset allocation, valuation discipline, risk management, and tax efficiency. We avoided reacting to short-term sentiment swings and instead used periods of volatility to evaluate opportunities where fundamentals and prices diverged.

Looking ahead, we believe the investment environment entering 2026 is healthier than it has been in some time. Higher yields, more normalized capital costs, and a wider opportunity set favor investors who are diversified, patient, and guided by a long-term plan. While challenges will persist, they are precisely what create opportunities for disciplined capital.

We are grateful for the trust you place in us and remain committed to thoughtful stewardship of your assets. We are incredibly grateful to our clients, shareholders, and advocates for referring us to your friends, family, and acquaintances as prospective clients. We consider those referrals to be the highest compliment as we continue to grow together. If your circumstances or goals have changed, or if you would like to revisit your strategy as we enter the new year, we welcome that conversation.

Thank you for your continued confidence, and we look forward to navigating the opportunities ahead together.

Sincerely,

The information presented in this newsletter is the opinion of Wisconsin Capital Management, LLC and does not reflect the view of any other person or entity.  The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies.  This is for information purposes and should not be construed as an investment recommendation.

 Economic factors, market conditions, and investment strategies will affect the performance of any portfolio and there are no assurances that it will match or outperform any particular benchmark.

 Opinions expressed are those of the author and are subject to change, are not intended to be a forecast of future events, a guarantee of future results, nor investment advice.

Past performance is not indicative of future performance, and all investments are subject to risk of loss. See Wisconsin Capital Management’s Form ADV Part 2A and Form CRS at https://www.wiscap.com/ for additional information about our business practices and conflicts identified.

Advisory services offered through Wisconsin Capital Management, LLC, an Investment Advisor registered with the U.S. Securities & Exchange Commission.

All registered investment advisers have the same fiduciary duty as Wisconsin Capital Management, LLC.