Legacy Ridge Capital Management, an investment management company, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. The Partnership returned 7% net of a 1% performance fee in 2025. Market volatility led to the Partnership’s weaker-than-expected performance last year. The year started strongly but faced challenges after Liberation Day, despite wisely investing during the market’s lows. The Partnership showed progress from November to mid-December. The letter also noted that a shift in the calendar end date would have improved returns by over 4%, highlighting the unpredictable nature of concentrated value investing. The portfolio is concentrated in 10 names, and the dividend yield is approximately 6%. Please review the Partnership’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Legacy Ridge Capital Management highlighted stocks like Polaris Inc. (NYSE:PII). Polaris Inc. (NYSE:PII) is a powersports vehicles manufacturing company. On February 3, 2026, Polaris Inc. (NYSE:PII) stock closed at $67.20 per share. Polaris Inc. (NYSE:PII) delivered a -2.92% return in the past month, and its shares are up 48.41% over the past twelve months. Polaris Inc. (NYSE:PII) has a market capitalization of $3.78 billion.

Legacy Ridge Capital Management stated the following regarding Polaris Inc. (NYSE:PII) in its fourth quarter 2025 investor letter:

“Most of the names we’ve owned for several years have had decent performance, and despite earnings and dividends growing over that period most have also benefited from a moderate re-rating, thus narrowing the margin of safety. Equally distributing excess cash across our current portfolio doesn’t appeal to us at this very moment, but circumstances can change quickly and we’ve had numerous bouts of idiosyncratic volatility in owned or followed names in the recent past. And sitting on our ass(ets)—as Munger would say— doesn’t mean we’ve quit trying to find great opportunities. We’re finding new ideas we think are cheap, we just aren’t finding as many. Rather than make a new idea a 15%+ position in an effort to deploy more of our cash, which would make us uncomfortable, we initially invest 10% or less.