Overview

• LRT Capital Management released its third-quarter 2025 investor letter reporting a -8.00% net return for September and a year-to-date return of -0.17%.
• The letter attributes the weak month to market indexes being driven higher by a handful of highly valued mega-cap stocks while the broader market declined.
• The strategy remains a systematic long/short approach designed to control downside risk with low net exposure to equities.
• The letter spotlights four holdings for durable moats: TD for its Canadian banking oligopoly and expanding U.S. retail presence and conservative risk culture, and RLI for disciplined underwriting in niche specialty lines.
• It also highlights Toro for strong brands and an extensive dealer network that creates switching costs, and Colliers for a decentralized, owner-operator model with significant insider ownership.