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 |
|---|---|---|---|---|---|---|
As of Sep 1, 2026
Arauca Capital compounds capital through an active, hypothesis-driven approach that pairs high-quality, mispriced compounders with macro-aware risk management and valuation discipline. During the first half of 2026, the fund generated a gross return of 25.26%, driven by significant multi-bagger gains across technology and artificial intelligence holdings, including successful exits in Kioxia, Shelly Group, and synthetic options positions in Alphabet, alongside sales in AST SpaceMobile and Vitalhub. Arauca has transitioned a large portion of its portfolio into short-dated government bonds and cash, creating substantial dry powder as the artificial intelligence landscape transitions from early free-optionality into peak-cycle enthusiasm and capex intensity. The manager identifies power availability and behind-the-meter infrastructure as key bottlenecks for AI, while establishing a new core long position in VersaBank to capture high-margin, zero-credit-loss point-of-sale loan growth in the United States alongside tokenized deposit optionality. Key macro risks include expanding United States fiscal deficits, persistent inflation paired with long-end Treasury yield suppression, and cyclical memory oversupply.
Capital is protected and compounded by investing in mispriced businesses where fundamentals inflect ahead of market recognition, while maintaining the strict discipline to exit when extreme valuations discount permanence in cyclical or rapidly evolving industries.
Arauca Capital expects financial markets to face growing friction as massive AI capital expenditures compress free cash flow and supply responses catch up to cyclical industries like memory. Policymakers attempting to suppress long-end government bond yields despite above-target inflation risk triggering broader fiscal and currency instability. The fund intends to maintain substantial dry powder in short-term Treasuries and gold while opportunistically deploying into niche corporate turnarounds, Texas private power campuses, and governance-driven mispricings in South Korea.
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