Investor Letter: October 2025

October 2025

Dear Investor,

We had another excellent quarter after the media induced “tariff tantrum” market correction in early April. During the 3rd quarter of 2025 your investment in CM Legacy Partners LLC had a net return of +10.9%. Year-to-date the Fund has returned +19.9% vs. the S&P 500 +13.7% and the DJIA +9.1%. For the trailing one year we gained +36.1% with an annualized return of +26.4% during the last three years.

Our best performing positions during the last quarter were: Unity Software (gaming platform and advertising services), Agnico-Eagle (gold mining), BWX Technologies (nuclear power systems), Wheaton Precious Metals (gold and silver royalties), and CEF (gold and silver bullion).

The Fund currently has a15% exposure to precious metals and mining stocks and 5% committed to Bitcoin. After a buying spree during the last few years, global Central Banks now own more gold than U.S. Treasuries. However, gold and Bitcoin still remain under owned by traditional mutual fund and hedge fund managers. We have had a long-standing interest in owning “hard assets” as a safe haven from fiat currency debasement. Since 1971 when President Nixon ended the U.S. dollar link to gold, the dollar has been devalued by 87%. Throughout history every government has eventually become addicted to deficit spending and “money printing.” At some point there may be a debt crisis and our refuge will be hard assets that cannot be “created” by any government. Year-to-date our gold/silver bullion (CEF) has appreciated +56%, and since the year 2000, gold has far outperformed the S&P 500.

Somewhat surprising, during the last three months Bitcoin has been lagging the price appreciation of gold. Bitcoin is even “harder” than gold with a finite supply of 21 million, whereas the global production of gold increases supply annually by about 1.7%. We anticipate that Bitcoin will have a stronger 4th quarter as it is entering a favorable investment season and Bitcoin’s acceptance and adoption is gaining traction. It also has a history of explosive appreciation after a period of consolidation.

There are reasons to be optimistic about U.S. equity markets going forward. The Federal Reserve has started on a path of lower interest rates which can fuel higher equity prices; if the economy continues to grow. Behind the scenes, the current administration is deregulating production and distribution of oil and natural gas leading to more abundant and cheaper energy. In addition, the government is aggressively promoting onshore manufacturing and development of nuclear energy, artificial intelligence and crypto digital assets. Hopefully, these growth policies will indeed lead to a “Golden Era” in the U.S.!

Inflation is currently moderating; even though tariffs and lower interest rates are problematic for higher prices.  Offsetting the tariffs, lower energy costs and evolving new technologies are deflationary.  Many companies like Palantir are extensively using AI and they are reporting robust earnings growth while at the same time reducing employee headcount. Increasing productivity is deflationary and increasing profit margins lead to higher equity prices. Let’s see how the market reacts in coming months.

If you have any questions, do not hesitate to contact me at 917-225-6002 or cam@kcorba.com. You can also review our website at www.cmlegacy.com.   

Kenneth W. Corba

Portfolio Manager