Comstock Capital Value Fund — Q3 2025 Commentary & Outlook

In the third quarter of 2025, Comstock Capital Value Fund navigated a mixed market environment dominated by macro uncertainty, interest-rate discussions and sector rotation back toward beaten-down value names. The portfolio’s discipline around valuation and cash-flow fundamentals guided positioning, with managers favoring undervalued industrials, select financials and consumer names that offer durable cash generation and balance-sheet resilience.

Performance drivers during the quarter were a combination of stock selection and sector exposures. Holdings in cyclical sectors benefited from improving demand signals in select end markets, while several defensive, high-quality positions provided ballast during periods of volatility. The team reduced exposure to richly valued momentum areas and trimmed positions where fundamentals did not justify current prices, redeploying capital into businesses with clearer recovery or cash-return prospects.

Risk management remained a priority. The fund maintained a measured cash buffer to take advantage of dislocations and avoided overconcentration in any single issuer or theme. Position sizing was guided by bottom-up research and stress-tested assumptions about earnings durability under slower growth scenarios. The managers also monitored liquidity and credit sensitivity amid persistent policy uncertainty.

Looking ahead, the fund’s outlook is cautiously constructive. Management expects opportunities to surface as investor sentiment swings and as macro headlines create temporary mispricings in quality-value names. The investment team will continue to emphasize valuation discipline, free-cash-flow generation and strong corporate governance when adding or increasing positions. The approach remains long-term and fundamentals-driven: buying companies at attractive entry points and holding them until their risk-reward profile no longer meets the fund’s criteria.

Investors should anticipate continued active rebalancing as new information emerges, with an emphasis on capital preservation and selective participation in recoveries. The fund’s strategy seeks to capture value-oriented upside while limiting downside risk through diversified sector exposure, conservative leverage policies and ongoing fundamental research.