Proprietary Research. Successful Outcomes.

To our clients, As we enter the final quarter of the year, markets once again find themselves climbing a wall of worry. From renewed trade tensions and persistent inflation to political gridlock in Washington, investors have had no shortage of headlines to digest. Yet despite these challenges, equity markets trade at all-time highs.

To Our Clients: When I wrote my last letter three months ago, we were unknowingly just one day away from a market bottom following a 20% correction. Our investment team had recently deployed much of the remaining cash in your equity accounts. Investor sentiment was at extreme lows as markets digested the implications of tariffs on corporate earnings and the broader economy. Fast forward to June 27, and the S&P 500 had climbed more than 25% off that bottom, returning to all-time highs. This marked the second-fastest rebound from a bear market low to a new high in the last 75 years (1982 was slightly faster). It has been a volatile year, to say the least, but one that highlights the value of true active management.

To Our Valued Clients: We find ourselves in the midst of an unsettling moment. While quarter-end results are typically a benchmark for reflection, they now feel distant given the dramatic movements in equity markets during the first week of April. For many investors, the emotional whiplash of these swings has been just as intense as the financial headlines. In times like these, clarity and perspective become more important than ever.

As I take up the pen for our quarterly newsletter, I want to begin by introducing myself. My name is Rick Ryskalczyk, and I have had the privilege of being part of Sandhill for the past fourteen years. During that time, it has been an honor to work closely with the twenty-eight members of our firm and witness the remarkable dedication and trust that underpin the relationships we have built with you. I also want to acknowledge the exceptional work of Edwin M. Johnston, who set a high standard for thoughtful communication over many years. While my writing style may differ, it is my intention to bring a fresh perspective while assuring you that our commitment to the principles that guide your investments remains steadfast. In this letter and subsequent quarterly newsletters, I will provide updates on our proprietary strategies, share insights on the market, and outline how we are positioning for the future. I look forward to continuing the dialogue and sharing this journey with you. As one of the longest-tenured partners at the firm, I have seen Sandhill grow and evolve – with one underlying goal: to add genuine value for our clients. We now have hundreds of clients, and the value that we provide to each of you can come in different ways. This idea of adding value is crystallized with our mission statement: To provide <strong>financial comfort</strong> and <strong>security</strong> through <strong>trusted execution</strong>. Our goal is to provide you comfort in knowing that we understand your unique situation and to be stewards of your trust that our team will execute a path to help you achieve your goals. Our firm’s success is entirely dependent on the success of our clients. We are dedicated to an ongoing pursuit of excellence and continuously refining our strategies to create and deliver greater value for you, our clients.