Partnership Letter 2025

Principled Capital Members,

The fund became fully funded on August 31st, 2021, and since then has been deployed into the market. From inception to the close of 2025, your investment in Principled Capital earned ~5x more gains than if you had invested in the S&P 500 over the same time period.

Historical Performance (unaudited):

Principled Capital annualized return % since inception:

• Before fees: 33.39%

• After fees: 25.75%

2025 Performance Summary (unaudited):

Jan 1st 2025 to Dec 31st, 2025

S&P 500 (SPY): 16.63%

Principled Capital Partners: -12.18%

Partnership Letter:

Happy New Year to everyone!

The past year was a little bit of a roller coaster, with momentum building throughout the year, only to fizzle out in the last few weeks, where we ended roughly flat for the year. We only made one trade during the year, which unfortunately did not pan out as hoped (breaking even), and now we sit in a holding pattern once again waiting for great businesses to become available at attractive prices.

Over the long term, we are still performing well and remain optimistic about our principled approach continuing to perform well over the many years to come. We look forward to another year and greatly appreciate your continued trust and faith you place in us as we allocate your capital to the best of our abilities.

I will be sending out K1’s shortly, and as always, feel free to reach out to me if you have any questions/concerns.

Thanks!

Paul Holtfrerich

Managing Partner, Principled Capital LLC