Core Insights - Silver Beech Capital achieved a net annualized return of 19.5% since inception, outperforming the S&P 500 by 5.3% annually [1] - The fund's performance in Q3 2025 was up 3.5%, while the S&P 500 and Russell 2000 returned 14.8% and 10.4% YTD respectively [1] - The S&P 500's Q3 return of 8.1% was attributed to market recovery post-Liberation Day volatility, driven by monetary easing and strong tech earnings [1] - Current equity valuations are viewed as disconnected from fundamentals by the firm [1] Company Focus: WillScot Holdings Corporation - WillScot Holdings Corporation (NASDAQ:WSC) offers workspace and portable storage solutions and changed its name from WillScot Mobile Mini Holdings Corp. in July 2024 [2] - The stock's one-month return was 1.56%, but it has lost 42.13% of its value over the past 52 weeks, closing at $19.56 per share with a market capitalization of $3.561 billion on December 22, 2025 [2] - Silver Beech Capital views WillScot as a significant opportunity, noting a ~40% decline from its cost basis and a reduction in valuation from ~10x TEV/EBITDA (2024E) to ~7.5x (2025E) [3] - The free cash flow yield for WillScot is projected to increase from ~7% (2024E) to ~13% (2025E), indicating a market perception of decline that contrasts with the firm's view of the company as a compounding industrial services franchise with a strong market position [3]

Core Insights - Madison Small Cap Fund experienced a challenging third quarter in 2025, with a decline of 1.3% in its performance, significantly underperforming benchmarks due to stock selection and a speculative market environment [1] Company Performance - WillScot Holdings Corporation (NASDAQ:WSC) reported a one-month return of -29.46% and a 52-week loss of 56.34%, closing at $15.85 per share with a market capitalization of $2.886 billion as of November 20, 2025 [2] - In Q3 2025, WillScot Holdings Corporation generated revenue of $567 million, a decrease of $34 million compared to Q3 2024 [4] Investment Analysis - The underperformance of WillScot Holdings Corporation was attributed to challenging end markets, but the company has attractive unit economics and has reduced its share count from 230 million to 182 million over the past five years through share buybacks [3] - Madison Small Cap Fund reassessed the intrinsic value of WillScot Holdings Corporation at $46, based on conservative assumptions regarding market recovery and continued share buybacks, indicating a belief in the company's long-term potential despite current challenges [3]