Tax-Loss Harvesting December
2025's wild ride left plenty of red ink. Harvest those losses, offset gains, and reposition into structural winners for the new year.
December 2025Why December Is Prime Season
Sell positions showing losses to realize capital losses, which offset gains elsewhere (or up to $3,000 of ordinary income). Do it by year-end, and you reset cost basis for future upside.
2025 served up perfect conditions — tariff shocks, sticky inflation scares, and intermittent risk-off waves created sharp dispersion.
2025's Best Harvest Candidates
- Tariff casualties: Apple, Nike, Tesla, autos, retailers — down 15–40% from peaks
- Rate-sensitive laggards: Long-duration names outside AI core
- EM and China-exposed: Multinationals with heavy overseas revenue
- Crypto proxies: MSTR and miners — spectacular losers for latecomers
Where We're Repositioning
Trimming minor laggards to realize losses. Those credits are immediately redeployed into our highest-conviction themes:
Adding even more to precious and industrial metals on any weakness — the ultimate real-world inflation hedge. Bolstering core AI infrastructure leaders that never stopped compounding.
Lower cost basis in the winners, tax efficiency, no change to structural outlook.
Bottom Line
December's volatility isn't a threat — it's a year-end gift for tax-efficient investors. Harvest the losers 2025 created, offset your gains, and reload into the names that will keep working in 2026.
Make the tax code work for you. The winners aren't changing.
Vector Ridge is realizing select tax losses to further increase exposure to precious/industrial metals — now deeper beyond maximum overweight. Core holdings in AI infrastructure leaders; short MicroStrategy; zero direct cryptocurrency. This article represents our views at the time of publication and should not be considered investment advice.