Laughing Water Capital has published its investor letter for the fourth quarter of 2025. The investment firm reported a return of approximately 6.8% for the quarter, bringing its net annual return to about 3.9% after fees and expenses. Over the same period, the SP500TR and R2000 indexes returned roughly 2.7% and 2.2%, respectively. For the full year, those indexes gained 17.9% and 12.8%.
While the fund outperformed the indexes last year, it has trailed them in the current year. The firm emphasized that long-term cumulative returns are more significant, noting that volatility tends to diminish over time. Since its inception, the portfolio has returned about 400%, compared to approximately 332% for the SP500TR and 175% for the R2000.
In the letter, Laughing Water Capital highlighted its exit from Thryv Holdings, Inc. (NASDAQ:THRY), a digital marketing and cloud-based tools provider for small-to-medium-sized businesses. The stock closed at $5.36 per share on January 15, 2026. Over the past month, Thryv's stock fell 12.27%, and it has lost 66.05% of its value over the last 52 weeks. The company has about 69.96 million shares outstanding, giving it a market capitalization of $235.499 million.
The firm stated in the letter, "Thryv Holdings, Inc. (NASDAQ:THRY) - I have exited our position in long-time holding THRY. While we made some money along the way with some well-timed sales at significantly higher prices than where I sold our last shares, Thryv was a significant detractor for 2025, and likely belongs in the mistake pile. The original thesis was that Thryv’s declining but cash gushing Yellow Pages business obfuscated a fast-growing small business software business. This software was not necessarily dominant versus competitors, but I believed Thryv had a competitive advantage in terms of distribution. This was because Thryv had a captive audience in the form of its Yellow Pages customers, while competitors were dependent on cold-calls and Google key words. Combined with tailwinds from aging baby boomers who are retiring and leaving their businesses in the hands of the next generation that is more apt to upgrade their software stack, I believed Thryv was well positioned for success."
According to database records, 29 hedge fund portfolios held Thryv Holdings at the end of the third quarter, up from 17 in the previous quarter. Thryv Holdings is not included in a list of 30 most popular stocks among hedge funds.