December and 2025 Performance Review - ClearAlpha Capital

December Portfolio Return: +2.98%

December S&P 500 (SPX): +0.11%

2025 Annual Portfolio Return: +21.82%

2025 Annual S&P 500 (SPX): +16.39%

December Performance Review

In December, the ClearAlpha Capital portfolio achieved a monthly return of +2.98%, significantly outperforming the S&P 500, which rose only +0.11% during the same period. Amid year-end liquidity tightening, fluctuating market sentiment, and intensifying sector divergence, this performance stemmed primarily from fundamental recovery and valuation reversion at the individual stock level, rather than speculation on short-term themes or sentiment.

Multiple core holdings in the portfolio continued to deliver on operational expectations while maintaining relatively reasonable valuations, enabling us to preserve a favorable risk-reward structure amid market volatility.

2025 Annual Review

Throughout 2025, the ClearAlpha Capital portfolio achieved an annual return of +21.82%, significantly outperforming the S&P 500 Index's +16.39%. This outcome did not stem from bets on a single phase or style, but rather reflected our consistent execution of stock selection discipline, risk control, and portfolio structure across varying market conditions throughout the year.

Looking back at the year, markets exhibited the following characteristics:

*Thematic rallies shifted rapidly multiple times;

*Significant valuation expansions occurred in specific sectors;

Amidst this environment, we steadfastly adhered to:

*Bottom-up research centered on fundamentals and rules;

*Restrained judgment regarding valuations and expectations;

*Strict control of exposure to single risk sources at the portfolio level.

Strategy and Methodology Review

In 2025, we continued to avoid crowded trades characterized by high volatility and consensus expectations, maintaining a cautious stance particularly when valuations of certain thematic assets deviated significantly from fundamentals. The portfolio prioritized:

*Maintaining independent market insights;

*Companies with sustainable cash flows and profitability;

*Investments offering a reasonable margin of safety between valuation and long-term return potential;

*Business models demonstrating operational resilience across diverse macroeconomic environments.

While this approach may sacrifice short-term relative returns in certain phases, it effectively reduced portfolio drawdown risk and enhanced risk-adjusted return quality over the full year.

Outlook

Entering the new year, we will continue to uphold a prudent and independent investment framework: respecting market shifts while avoiding short-term sentiment-driven decisions; seeking opportunities while prioritizing risk management.

This document serves as a performance review and market observation and does not constitute any investment advice or profit commitment.