Voss Capital, LLC, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned -2.1% and -2.2%, respectively, to investors net of fees and expenses, in the fourth quarter compared to a +2.2% return for the Russell 2000 Index, +3.3% return for the Russell 2000 Value Index, and +2.7% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 158.7%, and the delta-adjusted was 78.8% as of December 31, 2025. The weight of the Fund’s top 10 longs was 76.4%, and the top 10 shorts were -27.3%. The letter discussed the storm around Artificial Intelligence. Software companies have the highest AI adoption rates. The firm believes that early users of new technology, rather than infrastructure providers, often receive the largest long-term economic benefits. Incumbent corporations enjoy a structural advantage due to their access to engineering skills and modern multi-agent tools. In addition, you can check the firm’s top 5 holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Voss Capital highlighted stocks like Choice Hotels International, Inc. (NYSE:CHH). Choice Hotels International, Inc. (NYSE:CHH) is a multinational hospitality company operates through Hotel Franchising & Management and Corporate & Other segments. On March 06, 2026, Choice Hotels International, Inc. (NYSE:CHH) stock closed at $100.48 per share. One-month return of Choice Hotels International, Inc. (NYSE:CHH) was -6.75%, and its shares lost 30.48% over the past 52 weeks. Choice Hotels International, Inc. (NYSE:CHH) has a market capitalization of $4.65 billion.
Voss Capital stated the following regarding Choice Hotels International, Inc. (NYSE:CHH) in its fourth quarter 2025 investor letter:
“Choice Hotels International, Inc. (NYSE:CHH) is an asset-light, high-margin (60%+ EBITDA margin on revenue ex-pass-through costs) hotel franchisor trading at a distressed multiple due to cyclical top-line headwinds and KPI deterioration experienced in 2025, namely U.S. RevPAR declines and lack of U.S. room growth. The market has severely punished the stock—down from $154 in early 2025 to $106 today—now pricing in structural decline fears. However, the business is still growing earnings, is highly cash-generative, and may have the ability to unlock a significant amount of cash on the balance sheet to buy back shares at these historically low levels.
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