The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Manager deployed capital aggressively into AutoZone, CME, and McKesson while markets chased AI momentum, creating 11.4 percentage point Q2 underperformance. Sees AutoZone's distribution buildout nearing inflection, CME's competitive moat intact despite perpetual futures threat, and McKesson positioned for sustained margin expansion from 2028 patent cliff. Avoids memory chips and AI-vulnerable software. Portfolio fully invested in fifteen concentrated positions with strong conviction despite near-term divergence.
Manager pursues concentrated value investing in high-quality businesses with durable competitive advantages trading at reasonable valuations, focusing on idiosyncratic opportunities ignored by markets chasing AI-related momentum.
Manager is optimistic about the portfolio based on today's opportunity set and prices, despite disappointing short-term results. Believes current market environment favors buying great businesses that are being sold to fund AI-related purchases. Cannot predict with precision when favorable results will show up in performance figures, but maintains conviction in concentrated, differentiated approach. Expects AutoZone earnings growth to accelerate as distribution buildout peaks and CME to maintain dominance despite competitive threats. Sees McKesson positioned for sustainable gross profit growth at high single digit rate with margin expansion.
As of Jun 30, 2026
Jake Anthony Keys serves as Managing Member and 100% owner of Appalaches Capital, LLC. Keys is a 2023 University of Kentucky graduate with a B.B.A. in Finance and Mathematics and has prior experience with SEC-registered hedge fund advisers. His employment history includes internships at Point72 Asset Management and Aristides Capital LLC. Keys has been registered as an Investment Adviser Representative since September 11, 2023, when he established the firm. He passed the Series 65 examination in March 2023 and began his MBA at the University of Chicago Booth School of Business in September 2025. There are no disclosed disciplinary events or customer disputes involving Mr. Keys.
Appalaches Capital employs a benchmark-agnostic approach, building portfolios around their best investment ideas with a willingness to hold cash opportunistically rather than compulsorily. The firm adopts a long-term perspective spanning three to five years and identifies investment opportunities driven by the agency costs and constraints of other investors. They describe themselves as value investors at their core, but believe that value incorporates both growth and risk, not just high current yields. The firm pursues superior risk-adjusted returns that come from independent thought and intentional action, operating far from the noise of Wall Street. Their core philosophy centers on the belief that to obtain results superior to the crowd, an investor must behave differently from the crowd.
Lead Portfolio Manager
High Conviction Bullish
Market Conviction
Portfolio is highly concentrated with fifteen individual stocks at quarter-end. Manager names and sizes top holdings (AutoZone, CME, McKesson in top 5), provides detailed multi-page thesis for each, and explicitly increased stakes during market weakness. States 'I feel the best I ever have about our portfolio' despite worst relative showing. Provides specific catalysts with timeframes (2028 patent cliff, Mega Hub buildout peaking next year). Willingness to underperform by 11.4% while adding to positions demonstrates high conviction. Only factor preventing 0.90+ score is lack of explicit position sizing percentages beyond top 5 list.
Growth Outlook
Manager states 'I believe this is a great time to be putting capital to work in high-quality and reasonably valued businesses' and is 'optimistic about our portfolio based on today's opportunity set and prices.' However, expresses caution about AI valuations and memory chip supply dynamics. The constructive view on selective opportunities is tempered by concerns about market concentration in AI-related stocks. Overall mildly positive on finding value despite elevated index levels.
Risk Appetite
Manager explicitly states 'We are close to fully invested today' and increased stakes in three existing holdings while initiating a new position. This represents aggressive deployment and high risk appetite. The concentrated fifteen-stock portfolio structure and willingness to diverge meaningfully from benchmarks (11.4% underperformance in Q2) demonstrates strong risk-on positioning. Manager is putting capital to work despite near-term underperformance.
Capital Deployment
Manager moved from unspecified prior cash level to 'close to fully invested today,' representing meaningful net deployment. Increased stakes in three existing holdings (AutoZone, CME, Progressive) and initiated new position in McKesson. Cash appears in top 5 holdings but manager explicitly states near-full deployment. No specific cash percentages provided, but directional language and activity pattern indicate 5-8% cash reduction, consistent with +0.65 to +0.75 range.
Forward Guidance
Manager demonstrates clear deployment bias, having increased positions and initiated new holdings during the quarter. States intention to maintain concentrated, differentiated approach and expresses optimism about forward opportunities. However, does not signal plans for additional aggressive deployment beyond current near-fully-invested status. The tone is confident in existing positions rather than signaling imminent new capital deployment.
Language Signal
Language is balanced between opportunity-focused and risk-aware. Positive terms include 'great time,' 'optimistic,' 'good opportunity,' 'attractive,' and 'sustainable.' Cautionary language includes 'disappointing,' 'uninspiring,' 'fearful,' 'threat,' and 'cure for high prices.' The letter dedicates substantial space to explaining risks in memory chips and AI-vulnerable software. Net balance leans mildly positive but with significant risk acknowledgment throughout.
Perceived Risk
Manager identifies specific risks including AI-driven market concentration, memory chip oversupply potential, and software disruption threats. Discusses competitive risks to CME and temporary earnings headwinds at AutoZone. However, risk discussion is balanced with opportunity framing and does not dominate the letter. Risks are named and analyzed but presented as manageable or creating opportunity rather than systemic threats. Falls in moderate risk acknowledgment range with standard caveat language.
Opportunity Density
Manager sees 'great time to be putting capital to work' and identifies multiple attractive opportunities across auto aftermarket, exchanges, and pharmaceutical distribution. States 'I am optimistic about our portfolio based on today's opportunity set and prices.' Found enough compelling ideas to move to nearly fully invested status and initiate new positions. However, also notes 'I am not finding compelling value' in AI-related areas and expresses caution on memory chips, indicating selectivity is required. Overall characterizes environment as offering good opportunities in defined areas outside momentum trades.
Time Horizon
Manager demonstrates multi-year patience with specific catalysts. AutoZone buildout expected to peak 'in the coming year' with benefits extending beyond. McKesson thesis tied to 2028 patent cliff with tailwinds 'sustainable' through 2045. States 'I cannot predict with precision when the results will show up favorably' and emphasizes willingness to hold through short-term underperformance. However, discusses near-term catalysts (next year for AutoZone, 2028 for pharma) rather than decade-plus permanent capital language. Typical 2-4 year value investor horizon with milestone awareness.
Top Conviction Themes
Key Catalysts
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