Middle Coast Investing, an investment advisor firm, released its fourth-quarter 2025 investor letter. 2025 was a good year for the firm as well as for the broader market. A copy of the letter can be downloaded here. Stock markets tend to rise but often revert to their historical average. For the past three years, the S&P 500 has reported a 21.2% annualized return, which is above the mean. So, the signs of slowing growth have already been evident. The firm always focuses on investing in good companies at fair prices. In Q4 2025, the US Portfolios returned 2.7% compared to 2.3% for the S&P 500. It’s Core U.S. portfolios returned 1.9% while the Russell 2000 returned 1.9%, the S&P 600 returned 1.3% and the Nasdaq generated 2.6% for the same period. Also, its European Portfolios fell by -0.4%. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Middle Coast Investing highlighted stocks such as PagSeguro Digital Ltd. (NYSE:PAGS). PagSeguro Digital Ltd. (NYSE:PAGS) is a Brazil-based financial and payment solutions provider. On January 13, 2026, PagSeguro Digital Ltd. (NYSE:PAGS) stock closed at $10.13 per share. One-month return of PagSeguro Digital Ltd. (NYSE:PAGS) was 8.46%, and its shares gained 46.39% of their value over the last 52 weeks. PagSeguro Digital Ltd. (NYSE:PAGS) has a market capitalization of $2.957 billion.
Middle Coast Investing stated the following regarding PagSeguro Digital Ltd. (NYSE:PAGS) in its fourth quarter 2025 investor letter:
“I mentioned the top-down concept of diversify from US holdings. This is the rare case where I have been working top-down, looking for non-US stocks to mix in to our portfolio, and it took till Q4 to find one I liked
