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.
