| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 9.21% | 9.21% |
Rewey Asset Management's SMID composite gained 9.21% in 1Q26, outperforming the Russell 2500 Value index's 4.77% return. The quarter was dominated by the Iran conflict which drove oil prices up 76% to $101 per barrel and renewed inflation fears. Despite this volatility, the manager sees continued rotation from large-cap tech toward undervalued small and SMID-cap stocks, with the Russell 2500 Value outperforming while the Magnificent 7 declined 12%. Key portfolio highlights included UCTT's 141% return driven by semiconductor capital spending recovery and AI memory demand. The manager initiated a position in DNOW, an energy distributor benefiting from merger synergies and potential upstream recovery. Regional banks remain a core theme despite recent concerns about private credit, with Fed capital relief proposals providing potential catalysts. The portfolio maintains 30 positions with strong balance sheets and limited external funding dependence. Forward outlook depends on conflict resolution, with quick de-escalation enabling continued economic acceleration and small-cap outperformance.
Focus on financially strong small and SMID-cap companies trading at attractive valuations during a period of investor rotation away from large-cap tech toward neglected smaller companies.
Manager expresses cautious optimism contingent on quick resolution of Iran conflict. If resolved near-term, sees potential catalysts including steady GDP growth, moderating inflation, and continued investor rotation to small caps. Prolonged conflict would sustain higher oil prices and market volatility. Investment philosophy and process remain unchanged regardless of scenario.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 15 2026 | 2026 Q1 | DNOW, HBAN, KD, UCTT | energy, Iran, Regional Banks, Rotation, semiconductors, small caps, value |
UCTT KD DNOW |
RAM SMID outperformed 9.21% vs 4.77% for Russell 2500 Value despite Iran conflict volatility. Continued rotation from large-cap tech to neglected small caps drove outperformance. Semiconductor recovery and regional bank opportunities remain key themes. Portfolio maintains focus on financially strong companies positioned for 2-3 year value creation regardless of geopolitical outcomes. |
| Jan 18 2026 | 2025 Q4 | BR, CADE, DFIN, HOLX, LAKE, MEC | AI, Gdp, inflation, rates, small caps, technology, value |
MEC LAKE DFIN |
Small-cap value manager sees compelling opportunity from extreme valuation disparities with large-cap tech and expects rotation driven by economic tailwinds. Portfolio benefits from strengthening GDP growth, Fed rate cuts supporting cyclical industries, and fiscal policy stimulus. Key risks include persistent inflation and job market weakness, though these could force additional Fed accommodation. |
| Oct 12 2025 | 2025 Q3 | AMAT, III, KD, LRCX, UCTT, VREX, WMT | AI, Cyclical, Fed Rates, Labor Market, semiconductors, small caps, value |
VREX KD UCTT |
Small-cap value manager delivered 10.70% in 3Q25, outperforming benchmarks as size rotation began. Fed rate cuts and improving economic conditions support cyclical recovery thesis. AI implementation drives productivity while pressuring employment, forcing continued Fed easing. Portfolio positioned for rotation with concentrated holdings and selective cash deployment. Attractive valuations after years of underperformance create compelling opportunity. |
| Jul 17 2025 | 2025 Q2 | DCO, HOLX, LAKE, OFIX | active, defense, Medical Devices, small caps, SMID, undervalued, value |
DCO LAKE OFIX DCO LAKE OFIX |
RAM Smid composite gained 6.11% in 2Q25 but trails year-to-date. Manager believes small and SMID caps remain undervalued with strong fundamentals. Portfolio concentrated further with cash reduced to 5.35%. Ducommun surged on defense spending while Lakeland declined on tariff concerns. Increased Orthofix Medical position on compelling valuation. Expects rotation from large cap tech to benefit smaller caps. |
| Mar 31 2025 | 2025 Q1 | AEM, BA, DCO, PDCO, RTX, WDOFF, ZYXI | aerospace, defense, gold, small caps, SMID, tariffs, Trade Policy, value |
AEM ZYXI DCO |
RAM's SMID strategy declined 6.97% in Q1 amid tariff uncertainty, maintaining defensive cash positioning while identifying opportunities in defense, aerospace, and neglected small-mid caps. Manager expects continued volatility but views tariffs as ultimately deal-making tool rather than permanent policy. Focus remains on financially strong companies with visible 2-3 year value creation potential at attractive valuations. |
| Jan 18 2025 | 2024 Q4 | ARIS, AVNS, BKR, HAL, KD, SLB, WFRD | Concentration, neglect, Oil Services, small caps, SMID, value |
KD AVNS WFRD |
Rewey Asset Management's concentrated SMID strategy delivered 27.31% returns in 2024, outperforming benchmarks for six consecutive years. The 32-position portfolio targets undervalued small and mid-cap companies with strong balance sheets. Manager sees significant opportunities from index-driven neglect and expects rotation from large-cap tech concentration to benefit small-cap value stocks amid Fed rate cuts and increased M&A activity. |
| Oct 31 2024 | 2024 Q3 | AAPL, AMZN, GOOG, INTT, KD, LWAY, META, MSFT, NVDA, ORCL, SAP, TSLA, VMW | active management, rates, small caps, technology, value |
LWAY INTT KD |
Small-cap value rotation accelerated in Q3 as Fed rate cuts and investor neglect created opportunities. Portfolio outperformed with 9.83% gains versus benchmark's 9.63%. Active selection beats ETFs in identifying profitable small-caps among index constituents with negative earnings. Concentrated holdings like Kyndryl offer significant upside as rotation from large-cap concentration continues into 2025. |
| Jul 16 2024 | 2024 Q2 | AAPL, AMZN, GOOGL, HQY, III, LAKE, MSFT, NVDA, RELL, WBS | Regional Banks, Rotation, semiconductors, small caps, technology, value | WBS | Strong Q2 outperformance driven by small-cap value focus while mega-cap concentration creates rotation opportunity. Portfolio of financially strong companies at discounted valuations positioned for soft landing scenario. Key holdings Richardson Electric and Webster Financial offer compelling risk-reward despite sector headwinds. Manager sees neglect-driven opportunities as passive flows ignore quality smaller companies. |
| May 9 2024 | 2024 Q1 | 8035.T, AMAT, ARIS, CAT, COLB, GE, LRCX, MKSI, RELL, WAB | Banking, Commercial real estate, energy, semiconductors, small caps, value, water |
ARIS COLB RELL |
RAM's SMID value strategy gained 5.02% in Q1, led by ARIS Water Solutions' 71.99% surge on water recycling recognition. Added Richardson Electronics for semiconductor cycle recovery and green energy upside. Columbia Banking fell on overdone commercial real estate fears. Portfolio emphasizes financial strength with strong balance sheets and 3-5 year growth potential in undervalued small-mid caps. |
| Jan 18 2024 | 2023 Q4 | ARIS, BDC, CADE | Fed policy, rates, Regional Banks, small cap, value, water | ARIS | SMID value composite outperformed with 19% annual returns, positioning for continued rotation from large-cap concentration. Portfolio emphasizes financial strength with low leverage holdings. Added ARIS Water Solutions at attractive valuation in Permian water treatment space. Manager expects long-term trend favoring small-cap value over market timing approaches. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Regional BanksManager sees continued neglect and undervaluation in regional banks despite solid fundamentals. Views recent concerns about private credit and BDCs as misplaced when applied to regionals. Fed capital relief proposal could drive increased share repurchases and M&A activity. |
Regional Banks Capital Relief Credit Quality Valuations M&A |
Semiconductor CycleSharp inflection in semiconductor capital spending driven by AI memory demand. Memory chips in short supply as AI becomes massive consumer of memory. Major chipmakers announcing significant capex increases with upcycle in early stages. |
Memory AI Capex Semiconductors Upcycle | |
EnergyIran conflict drove oil prices up 76% to $101 per barrel. Prolonged conflict could sustain higher oil prices and inflation. Potential catalyst for breaking US upstream and chemical downstream spending out of three years of stagnant growth. |
Oil Iran Conflict Upstream Petrochemicals | |
Small CapsContinued rotation from large-cap tech toward neglected small and SMID-cap sectors. Russell 2500 Value outperformed while Magnificent 7 declined. Trend expected to persist driven by elevated mega-cap valuations and relative cheapness of smaller stocks. |
Rotation Valuations Outperformance Neglect Tech | |
| 2025 Q4 |
Small CapsForeign small caps dramatically outperformed US small caps in 2025, with Foreign Developed Small Cap returning +34.1% versus US Small Cap at +11.6%. The dispersion between geographies was extreme, creating two very different small-cap markets depending on positioning. |
Foreign Developed Dispersion Geography Performance |
ValueValue significantly outperformed growth in foreign small caps, with fund category results showing value ahead by 68.4% over five years versus 35.4% in index data. This disconnect suggests index returns have understated the opportunity set and valuation reset in growth. |
Growth Dispersion Valuation Reset Opportunity | |
QualityThe market increasingly rewarded companies with weaker fundamentals, with the lowest-quality funds outperforming highest-quality peers by 24.2% in 2025. This speculative environment has been challenging for quality-focused managers like Grandeur Peak. |
Fundamentals Speculation Dispersion Performance Challenge | |
EarningsPortfolio companies delivered strong earnings growth of 16.4% in 2025, exceeding estimates, with projected acceleration to 21.4% in 2026. The firm maintains focus on earnings growth as the north star for long-term stock performance. |
Growth Estimates Acceleration Performance Focus | |
AIAI poses real threats to the Philippines BPO industry which accounts for nearly 10% of GDP, with 7% of BPO jobs being eliminated despite 12% new job creation. The firm remains skeptical of industry claims about successfully upskilling and expanding higher value-add services. |
BPO Philippines Jobs Threat Skeptical | |
| 2025 Q3 |
Small CapsManager sees rotation from large-cap to small and smid-cap stocks beginning, with smaller cap indices outperforming in 3Q25. A modest 1% reallocation from S&P 500 to Russell 2500 Value would equate to buying 11% of that index, creating potential for significant outperformance as Fed cuts rates and economic conditions improve. |
Rotation Outperformance Russell Liquidity Valuation |
Semiconductor CycleManager believes the semiconductor capital equipment cycle has begun to inflect positively after weakness in first half 2025. Companies like Ultra Clean Holdings are positioned to benefit from cyclical recovery in semi-capx spending, with inventories stabilizing and end market demand strengthening in late 2Q25. |
Capx Recovery Equipment Foundry Memory | |
AICompanies are aggressively implementing AI to drive cost optimization and productivity gains. Management teams indicate clients are investing heavily in AI infrastructure while cutting costs elsewhere, with efficiency gains expected to dwarf the early 2000s internet productivity boom. This trend is driving labor reductions to fund AI investments. |
Productivity Infrastructure Automation Cost Implementation | |
RatesFed cut rates 25 basis points in September despite inflation above target, driven by weak labor market conditions. Manager expects continued rate cuts due to AI-driven job losses pressuring the Fed's employment mandate, with consensus expecting additional 25-50 basis points of cuts in fall 2025. |
Fed Employment Cuts Mandate Labor | |
| 2025 Q2 |
Small CapsManager believes small and SMID caps remain neglected and undervalued with many names fitting criteria for long-term selection. Active stock selection is appropriate for smaller caps due to limited liquidity in ETFs, ability to avoid weaker companies, and vast under-researched universe with over 5000 equities providing alpha generation opportunities. |
Value Active Alpha Undervalued Selection |
DefenseCommercial Aerospace & Defense sector remains supported by strong order flows and production from Boeing and Airbus. European NATO countries have committed to increasing military spending to 5% of GDP over time, providing tailwinds for defense-related holdings like Ducommun. |
NATO Military Aerospace Boeing Airbus | |
Medical DevicesOrthofix Medical represents compelling valuation opportunity in medtech sector following significant decline. Company is gaining share in key markets with prolific new product introduction schedule across Spine, Bone Growth Therapy, and Orthopedics segments. Management targeting mid-teens EBITDA margins by 2027. |
Spine Innovation Margins Growth FDA | |
| 2025 Q1 |
Trade PolicyTrump's tariffs represent the dominant market theme in Q1 2025, creating uncertainty about negative economic impacts. The manager views tariffs as Trump's method to reduce budget deficit and spur domestic production, but believes Trump will ultimately seek deals rather than maintain high tariff levels. |
Tariffs Trade Budget Domestic Deals |
Defense SpendingThe aerospace and defense sector could see revenue growth regardless of tariff impact or economic slowdown. The US needs to rebuild stockpiles sent to Ukraine and Israel, replace equipment left in Afghanistan, and re-tool for 21st century threats like drone and electronic warfare. |
Military Procurement Ukraine Israel Drones | |
AerospaceBoth Boeing and Airbus have struggled to deliver planes despite strong demand and backlogs. Production rates at both companies should continue to improve off the bottom, driving higher sales and earnings through their supplier base. |
Boeing Airbus Production Backlogs Suppliers | |
GoldAgnico Eagle was the strongest percentage gainer in the quarter on strong gold pricing, though the position was sold as it reached price target. The manager continues to own Wesdome Gold Mines which is forecast to post strong production growth and cost reductions. |
Gold Mining Production Pricing Abitibi | |
Small CapsThe manager sees fertile hunting ground in small-mid cap stocks despite risks in small cap ETFs due to companies with negative earnings. Active management allows avoiding these through stock selection, with 672 of 1796 companies in Russell 2500 value having negative income. |
Russell Selection Earnings Active Management | |
| 2024 Q4 |
Small CapsManager sees significant neglect and undervaluation in small and mid-cap stocks driven by the rise of index investing. Believes reallocation from large-cap tech concentration could drive substantial inflows to small/mid-cap space. Portfolio focuses on profitable companies within the Russell 2500 universe. |
Small Caps Value Neglect Indexing Rotation |
Oil ServicesAdded Weatherford International as a globally diversified oilfield services provider trading at significant discount to peers. Company has strengthened balance sheet since 2019 restructuring and offers exposure to high-margin segments including offshore drilling and digital evaluation. Sees margin expansion potential and possible M&A target. |
Oil Services Weatherford Restructuring Margins M&A | |
ValuePortfolio constructed around undervalued and neglected equities with strong financial metrics. Thirteen holdings trading at less than 1.5x book value, eight holdings with net cash positions. Focus on companies with financial strength, growth ability, and discounted valuations. |
Value Undervalued Book Value Financial Strength Neglect | |
| 2024 Q3 |
Small CapsManager believes small and smid-cap value stocks are experiencing a rotation driven by Fed rate cuts and investor neglect. The Russell 2500 Value outperformed the S&P 500 in Q3, and the manager sees this as the beginning of a broader trend supported by undervaluation, Fed rate cuts, and soft economic landing expectations. |
Small Caps Value Rates Neglect |
RatesThe Fed delivered a 50 basis point rate cut in September with dot plot projecting rates falling to 4.4% by year-end and 3.4% in 2025. Manager views this as positive for small and mid-cap stocks and expects continued rate cuts to drive performance through Q4 2024 and into 2025. |
Rates Fed Monetary Policy | |
ValueManager emphasizes active stock selection over ETFs in small-cap value, noting that 666 of 1871 securities in the Russell 2500 Value index have negative earnings. Their investment philosophy focuses on financial strength, ability to grow, and discounted valuations to identify profitable companies. |
Value Active Management ETFs | |
| 2024 Q2 |
Small CapsManager believes small and mid-cap stocks are positioned for strong performance due to cooling inflation, potential soft landing, and likely rotation away from concentrated large-cap technology positions. The concentration in mega-cap stocks has created neglect and valuation opportunities in smaller companies. |
Rotation Valuation Neglect Concentration Outperformance |
Commercial Real EstateManager sees investor fears around commercial real estate as creating opportunities, particularly in regional banks like Webster Financial. While acknowledging sector headwinds, the manager believes quality underwriting and well-staggered maturities create value opportunities. |
Banking Credit Underwriting Opportunity Fear | |
Semiconductor CycleRichardson Electric positioned for recovery as semiconductor equipment cycle bottoms. The company noted Q1 2024 as the trough, with additional growth opportunities in wind turbine battery replacement and diesel locomotive applications. |
Recovery Trough Equipment Cycle Growth | |
Regional BanksManager sees tremendous value in regional banks like Webster Financial, which have been shunned by investors expecting rate cuts. Strong capital ratios, diversified deposit base, and growth potential create compelling opportunities despite commercial real estate concerns. |
Value Deposits Capital Growth Opportunity | |
| 2024 Q1 |
Semiconductor CycleRELL is suffering from significant investor neglect due to the downcycle in the semiconductor capital equipment cycle. The manager sees substantial recovery potential as the cycle turns, with the CHIPS Act, AI, PC refresh cycle, 5G, EVs and autonomous driving as drivers. RELL's customers like LRCX are trading at all-time highs while RELL trades near multi-year lows. |
Semi Equipment Semiconductors AI 5G Electric Vehicles |
Energy TransitionRELL's Green Energy Solutions unit develops engineered solutions for replacing lead acid batteries in windmills and locomotives. Their battery replacement modules are approved for GE wind turbines and last up to 10 years versus 2 years for lead acid batteries. The manager sees this as a significantly neglected source of strong earnings upside. |
Wind Battery Manufacturers Energy Storage Renewable Components Green Energy | |
WaterARIS Water Solutions was the strongest performer, up 71.99% in the quarter. The manager views ARIS as extremely undervalued and misunderstood, as its business focuses on recovering and recycling water associated with oil and gas production rather than being dependent on commodity prices. They see a credible path to improving revenues and margins in core operations. |
Water Oil Services Recycling Environmental Services Energy | |
Commercial Real EstateColumbia Banking Systems was the weakest performer, falling 22.91% due to general fears of commercial real estate that the manager believes are overdone. COLB has more commercial loans but the manager thinks fears of its non-occupied CRE portfolio are misplaced given its 51% loan-to-value ratio and 0.00% charge-off rate in 4Q23. |
Commercial Real Estate Regional Banks Credit Stress Banking Real Estate | |
| 2023 Q4 |
ValueSmall and mid-cap value outperformed in Q4 2023 rally, with Russell 2500 Value gaining 6.81% in final weeks versus S&P 500's 2.78%. Manager believes value sector was oversold and sees continued appreciation potential as investors rotate from concentrated large-cap growth. |
Small Cap Mid Cap Rotation Outperformance Russell 2500 |
WaterARIS Water Solutions provides critical water disposal and recycling for oil producers in Permian Basin, treating up to 5:1 water-to-oil ratios. Company is expanding recycling capabilities to reduce aquifer usage and has research partnerships for agricultural irrigation and mineral extraction from treated water. |
Water Treatment Recycling Permian Basin ESG Infrastructure | |
Regional BanksCadence Bank was strongest performer gaining 40.50% in quarter and 25.38% for year, outperforming regional bank group. Bank successfully realizing merger synergies, sold insurance division for $904 million, and announced 10 million share buyback program. |
Banking Mergers Capital Return Synergies Performance |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 15, 2026 | Fund Letters | Rewey Asset Management | UCTT | Ultra Clean Holdings, Inc. | Semiconductor Equipment & Materials | Semiconductor Equipment | Bull | NASDAQ | AI, Capital equipment, memory chips, semiconductor equipment, technology, Upcycle | Login |
| Apr 15, 2026 | Fund Letters | Rewey Asset Management | KD | Kyndryl Holdings | Information Technology Services | IT Consulting & Other Services | Bull | New York Stock Exchange | contrarian, Free Cash Flow, IBM Spinoff, IT services, transformation, turnaround | Login |
| Apr 15, 2026 | Fund Letters | Rewey Asset Management | DNOW | DNOW Inc. | Industrial Distribution | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | Cyclical Recovery, data centers, Energy Distribution, ERP Integration, Industrial distribution, Merger Synergies, Oil & Gas | Login |
| Jan 18, 2026 | Fund Letters | Chip Rewey | DFIN | Donnelley Financial Solutions, Inc. | Information Technology | Financial Software | Bull | New York Stock Exchange | Capital markets, financial software, Free Cash Flow, SaaS Transition, Share Buybacks | Login |
| Jan 18, 2026 | Fund Letters | Chip Rewey | MEC | Mayville Engineering Company, Inc. | Industrials | Metal Fabrication | Bull | New York Stock Exchange | Acquisitions, Cyclicality, Data Center Equipment, Industrial Recovery, Metal Fabrication | Login |
| Jan 18, 2026 | Fund Letters | Chip Rewey | LAKE | Lakeland Industries, Inc. | Industrials | Safety Equipment | Bear | NASDAQ | Activist Ownership, execution risk, Fire Protection, Merger Integration, Safety Equipment | Login |
| Oct 12, 2025 | Fund Letters | Chip Rewey | VREX | Varex Imaging Corp. | Health Care | Medical Equipment & Supplies | Bull | NASDAQ | healthcare, manufacturing, medical imaging, recovery, tariffs | Login |
| Oct 12, 2025 | Fund Letters | Chip Rewey | KD | Kyndryl Holdings Inc. | Information Technology | IT Services | Bull | NYSE | infrastructure, IT services, margin expansion, transformation | Login |
| Oct 12, 2025 | Fund Letters | Chip Rewey | UCTT | Ultra Clean Holdings Inc. | Information Technology | Semiconductor Equipment | Bull | NASDAQ | AI, Equipment, manufacturing, Margins, recovery, semiconductors | Login |
| Jul 17, 2025 | Fund Letters | Chip Rewey | DCO | Ducommun Incorporated | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, backlog, Defense, Margins, Upcycle | Login |
| Jul 17, 2025 | Fund Letters | Chip Rewey | LAKE | Lakeland Industries, Inc. | Consumer Discretionary | Safety Apparel | Bull | NASDAQ | Industrial, Margins, restructuring, Safety, tariffs | Login |
| Jul 17, 2025 | Fund Letters | Chip Rewey | OFIX | Orthofix Medical Inc. | Health Care | Medical Devices | Bull | NASDAQ | Activism, Insiderbuying, Marginexpansion, Medtech, turnaround | Login |
| Jul 1, 2025 | Fund Letters | Rewey Asset Management | OFIX | Orthofix Medical | Health Care | Health Care Equipment | Bull | NASDAQ | 7D FLASH, AccelStim, Bone Growth Therapy, Diabetic Amputation, Engine Capital, FDA clearance, Innovation Pipeline, insider buying, margin expansion, Medical devices, Orthopedics, Seaspine Merger, Spine | Login |
| Jul 1, 2025 | Fund Letters | Rewey Asset Management | DCO | Ducommun | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Airbus, Boeing, Commercial Aviation, Defense, margin expansion, Military Spending, NATO, Vision 2027 | Login |
| Jul 1, 2025 | Fund Letters | Rewey Asset Management | LAKE | Lakeland Industries | Industrials | Industrial Machinery | Bull | NASDAQ | Acquisitions, Firefighter Gear, Full-Service Provider, Industrial Safety, Margin Improvement, Protective Clothing, Tariff mitigation, USMCA | Login |
| Apr 1, 2025 | Fund Letters | Rewey Asset Management | AEM | Agnico Eagle Mines Ltd. | Materials | Gold | Neutral | NYSE | Abitibi, Canada, commodity, Equity, Gold, Mining, Production | Login |
| Apr 1, 2025 | Fund Letters | Rewey Asset Management | ZYXI | Zynex Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Equity, Healthcare Equipment, innovation, Laser Technology, medical technology, Pulse Oximeter, Surgery | Login |
| Apr 1, 2025 | Fund Letters | Rewey Asset Management | DCO | Ducommun Inc. | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Airbus, backlog, Boeing, Commercial Aviation, Defense, Equity, Military, NATO | Login |
| Jan 1, 2025 | Fund Letters | Rewey Asset Management | KD | Kyndryl Holdings Inc | Information Technology | IT Consulting & Other Services | Bull | NYSE | Free Cash Flow, IT services, M&A Target, Managed Infrastructure, margin expansion, Share Buyback, Technology Consulting | Login |
| Jan 1, 2025 | Fund Letters | Rewey Asset Management | AVNS | Avanos Medical Inc | Health Care | Health Care Equipment | Bull | NYSE | CEO transition, Digestive Health, EBITDA multiple, M&A Target, Medical devices, Pain Management, Value | Login |
| Jan 1, 2025 | Fund Letters | Rewey Asset Management | WFRD | Weatherford International plc | Energy | Oil & Gas Equipment & Services | Bull | NASDAQ | energy equipment, Free Cash Flow, global diversification, M&A Target, margin expansion, oilfield services, restructuring, technology leadership, turnaround | Login |
| Oct 1, 2024 | Fund Letters | Rewey Asset Management | INTT | Intest | Information Technology | Electronic Equipment & Instruments | Bull | NYSE American | Cyclical, Electronic Equipment, Gallium Arsenide, Induction Heating, semiconductor equipment, Silicon Carbide, strong balance sheet, Test Equipment | Login |
| Oct 1, 2024 | Fund Letters | Rewey Asset Management | KD | Kyndryl Holdings, Inc. | Information Technology | IT Consulting & Other Services | Bull | NYSE | AI infrastructure, cloud infrastructure, Free Cash Flow, IBM Spinoff, investment grade, IT services, margin expansion, Mission-Critical, turnaround, undervalued | Login |
| Oct 1, 2024 | Fund Letters | Rewey Asset Management | LWAY | Lifeway Foods | Consumer Staples | Packaged Foods & Meats | Bull | NASDAQ | consumer staples, Dairy, margin expansion, Neglected Stock, Packaged Foods, Probiotic, Revenue Growth, takeover target, Value | Login |
| Jul 1, 2024 | Fund Letters | Rewey Asset Management | WBS | Webster Financial Corp. | Financials | Regional Banks | Bull | NYSE | Capital strength, commercial real estate, Deposit Diversification, Healthcare Financial Services, HSA, Northeast Banking, regional banks, Value | Login |
| Apr 1, 2024 | Fund Letters | Rewey Asset Management | COLB | Columbia Banking Systems | Financials | Regional Banks | Bull | NASDAQ | Bull, commercial real estate, high dividend yield, Merger Integration, Pacific Northwest, regional bank, share repurchases, Value | Login |
| Apr 1, 2024 | Fund Letters | Rewey Asset Management | RELL | Richardson Electronics | Information Technology | Electronic Equipment & Instruments | Bull | NASDAQ | battery technology, Bull, Cyclical Recovery, Electronic Components, Green Energy, net cash, semiconductor equipment, Synthetic Diamonds, Wind Turbines | Login |
| Apr 1, 2024 | Fund Letters | Rewey Asset Management | ARIS | ARIS Water Solutions | Energy | Oil & Gas Equipment & Services | Bull | NYSE | Acquisitions, Bull, dividend, energy infrastructure, environmental services, Permian Basin, Water Recycling, Water Solutions | Login |
| Jan 1, 2024 | Fund Letters | Rewey Asset Management | ARIS | ARIS Water Solutions Inc. | Energy | Oil & Gas Equipment & Services | Bull | NYSE | dividend, ESG, infrastructure, Oil Services, Permian Basin, Pipeline network, Recycling, Value, water treatment | Login |
| TICKER | COMMENTARY |
|---|---|
| UCTT | UCTT, highlighted in our 3Q25 letter, was our top performer in 1Q26, delivering a 141.5% return. The stock surged on strong quarterly results and a sharp inflection in the outlook for semi-conductor capital spending. Memory chips are now in short supply, as it has become apparent that artificial intelligence will be a massive consumer of memory. In response, major chipmakers have announced significant increases in capex, and we believe this upcycle is still in its early stages. |
| KD | KD was our weakest performer in 4Q25, as it initiated a disappointing 2026 revenue growth forecast down 2 to 3%, vs. expectations of turning the corner to revenue growth, albeit a modest 1%. Additionally, the company unexpectedly replaced its CFO and General Counsel and noted it would report a financial reporting control deficiency in its 10K. Despite these setbacks, we think the KD transformation story remains in-tact, and that post IBM-spin revenue will accelerate in 2026 at higher margins. Notably, management reaffirmed its target of generating over $1 billion in free cash flow in fiscal 2028 (March 2028), which implies a potential a 34.2% FCF yield at the quarter-end stock price. |
| DNOW | We initiated a position in DNOW, Inc. (DNOW), a distributor of energy and industrial products. Spun off from National Oilwell Varco in 2014, DNOW has grown revenue and improved profitability over the past five years despite a weak upstream E&P environment. In November 2025, DNOW merged with its largest competitor, MRC Global, forming a $2.22 billion company with a diversified revenue mix: approximately 41% upstream energy, 21% midstream, 21% gas utilities, and 17% downstream and industrial. We bought shares following the sharp sell-off after DNOW Inc. reported 4Q25 earnings. In our view, the release led to investor neglect due to numerous merger-related accounting charges and news that legacy MRC Global was experiencing significant issues with its Oracle ERP conversion. We believe this disruption has obscured the merger's substantial revenue and cost synergies, as well as a potential cyclical recovery in upstream and chemical spending. DNOW Inc.'s strong balance sheet supports both integration efforts and shareholder returns. Net debt to EBITDA was just 1.2x at year-end. At the end of 1Q26, shares of DNOW were priced at $11.91, significantly under its February 11, 2026, high of $17.26. We have set our price target at $17, up over 42% from current levels and still under February 2026 highs. |
| HBAN | We note that Huntington Bankshares (HBAN) completed its stock merger with CADE in the quarter, and we retained and added to our position in the merged company. |
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