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 |
|---|---|---|---|---|---|---|
Broadleaf's Growth Equity Portfolio returned 20.5% in Q2 2026 versus 15.2% for the S&P 500, recovering from a difficult first quarter. The manager views the current environment as a fundamental economic regime change from the digitally-enabled consumer era characterized by SaaS subscriptions and low inflation to an enterprise productivity boom driven by AI with higher growth, higher inflation, and hard industrial assets. AI is responsible for over half of GDP growth this quarter, with hyperscalers spending at a rate equivalent to building a Cleveland Browns stadium daily. This has created acute shortages in bottleneck companies, particularly memory manufacturers signing commitments through 2030, giving them pricing power and elongating the cycle. The portfolio has rotated from software/SaaS into semiconductor value chains, power generation, and tech hardware. The manager monitors three key risks: pace of AI innovation, AI ROI, and political pushback to datacenters. With strong evidence this quarter for model innovation from Anthropic and improving AI returns, the manager remains incredibly optimistic about the second half of 2026 for concentrated growth investing in this convergence of economic and innovation cycles.
Broadleaf is positioned for a fundamental economic regime change from the digitally-enabled consumer era to an enterprise productivity boom driven by AI, with concentrated exposure to semiconductor bottlenecks and HALO (Heavy Assets, Low Obsolescence) infrastructure benefiting from unprecedented hyperscaler capital deployment.
The manager remains incredibly optimistic about the future and expects the second half of 2026 to be positive for growth investors. They believe we are in the middle of a fundamental economic cycle regime change from a digitally-enabled consumer era to an enterprise productivity boom characterized by higher growth, higher inflation, and hard industrial assets. While monitoring three main risks (pace of AI innovation, AI ROI, and political pushback to datacenters), the manager sees strong evidence this quarter for model innovation and AI returns, with productivity gains expected to show up in data sooner rather than later.
As of Jun 30, 2026
Douglas Scott MacKay, CFA, founded Broadleaf Partners in 2005 and serves as CEO, Chief Investment Officer, and Managing Member. He has been registered as an investment adviser representative since November 2005 and holds the Chartered Financial Analyst designation, having passed the Series 65 examination in 1991. Prior to founding Broadleaf, MacKay was registered with Oak Associates Ltd. in Akron, Ohio from April 1996 to October 2005, providing him with extensive investment management experience before launching his independent firm. Under his leadership, Broadleaf has grown from $14.4 million in assets in 2006 to over $568 million as of Q3 2025, demonstrating consistent business development and client retention. MacKay regularly appears as a thought leader on CNBC programs including Power Lunch and Squawk on the Street, sharing market insights and investment perspectives. His investment approach has earned significant industry recognition, including being named Large-Cap Growth Manager of the Decade by PSN Top Guns for the ten years ending December 31, 2023. The with no disciplinary events throughout MacKay's tenure as principal. He also serves on investment committees for Peg's Foundation since 2021 and Miami University Foundation since 2025, demonstrating broader fiduciary experience. MacKay's leadership has established Broadleaf as a respected boutique investment firm serving high net worth individuals, families, and institutional clients.
Broadleaf Partners employs a concentrated growth investing strategy centered on their proprietary three-cycle framework encompassing innovation, economic, and credit cycles. The firm focuses on identifying sustainable long-term growth opportunities through integrated macroeconomic analysis and fundamental company research. Their investment approach emphasizes companies with strong free cash flow generation, sustainable competitive advantages, and exposure to secular growth trends. The concentrated portfolio of 25-35 large-cap equity positions is designed to outperform the S&P 500 over three-to-five-year periods or complete market cycles. The firm's boutique structure enables nimble portfolio management while avoiding group-think tendencies of larger institutions. Their investment methodology integrates fundamental, technical, cyclical, quantitative, and qualitative analysis to identify companies positioned to benefit from the three cycles of value creation. The long-term investment horizon aligns with client objectives while maintaining focus on intrinsic value and profitability metrics. Risk management is incorporated through diversification across the concentrated holdings and careful attention to portfolio characteristics including P/E ratios, free cash flow yields, and return on equity metrics. The firm's nearly two-decade track record demonstrates the effectiveness of their disciplined investment process and commitment to sustained outperformance.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The manager demonstrates high conviction through concentrated positioning (25-35 positions), explicit statements about increasing concentration this quarter, and clear thesis articulation around the AI regime change. Specific holdings are named (Nvidia, memory companies, hyperscalers) with directional views. The statement 'this feels like one of those times' to concentrate and 'our portfolio changes this quarter reflect our increased conviction' shows decisiveness. However, the score does not reach 0.80+ because individual position sizes are not disclosed, the portfolio remains diversified across 25-35 names rather than extreme concentration, and the manager maintains active monitoring of three key risks rather than declaring unwavering commitment. The conviction is clearly high but not at the Berkshire-style concentration level.
Growth Outlook
The manager is strongly bullish on markets, describing the opportunity set as driven by a fundamental economic regime change to an AI-powered enterprise productivity boom. Language includes 'incredibly optimistic about the future' and expectations that 'the second half of 2026 should be a positive one for growth investors.' The characterization of AI as responsible for over half of GDP growth and the framing of HALO assets as secular rather than cyclical drivers demonstrates clear bullish conviction. The only hedging relates to monitoring specific risks, but the base case is unambiguously positive.
Risk Appetite
The portfolio is positioned aggressively for the AI theme with increased concentration this quarter. The manager explicitly states 'our portfolio changes this quarter reflect our increased conviction in a new vision of the future' and describes this as 'one of those times to become more or less concentrated.' The rotation from software into semiconductor value chains, power generation, and tech hardware represents active risk-taking. However, the score is not higher because the letter does not provide specific cash levels or leverage details, and the manager maintains a monitoring stance on three key risks.
Capital Deployment
The letter describes active rotation this quarter from software/SaaS into semiconductor value chains, power generation, earthmoving equipment, and tech hardware, stating 'our portfolio changes this quarter reflect our increased conviction.' However, this represents capital rotation rather than net new deployment, as the manager sold positions to fund new ones. No cash level changes are disclosed. The statement about becoming 'more concentrated' suggests selective additions rather than broad deployment. Without evidence of cash levels declining or net exposure increasing, this scores as moderate rotation with a slight deployment bias, landing in the +0.35 to +0.55 range.
Forward Guidance
The manager demonstrates clear intent to maintain and potentially increase exposure to the AI infrastructure theme. The statement 'we remain incredibly optimistic about the future, and think that the second half of 2026 should be a positive one for growth investors' signals continued deployment bias. The increased concentration this quarter and rotation into bottleneck companies suggests ongoing active positioning. However, the score is tempered by the explicit monitoring of three risks and the acknowledgment that productivity gains have not yet shown up in the data, suggesting some conditionality to further deployment.
Language Signal
The letter contains predominantly bullish directional language including 'incredibly optimistic,' 'powerful combination,' 'rich opportunity set,' 'secular growth,' 'pricing power,' and 'durable cycle.' The manager describes AI as creating 'the biggest thing' and frames the regime change as a 'defining opportunity.' Bearish language is limited to specific concerns about software disruption, consumer weakness, and the three monitored risks. The balance tilts meaningfully bullish, though not overwhelmingly so given the acknowledgment of risks and the mixed consumer environment. The net language signal is clearly positive but includes enough cautionary elements to prevent a higher score.
Perceived Risk
The manager identifies and monitors three specific macro risks: pace of AI innovation, AI ROI, and political pushback to datacenters. Additional risks discussed include software/SaaS disruption, consumer weakness from inflation, Fed policy, and geopolitical tensions from the Iran War. However, these risks are acknowledged but not dwelled upon, with the manager immediately pivoting to evidence supporting the thesis (Anthropic models, customer commitments through 2030). The tone is 'we continue to monitor' rather than 'we are deeply concerned.' The risks are named and real but presented as manageable within a bullish framework, placing this in the moderate acknowledgment range rather than high concern.
Opportunity Density
The manager sees abundant opportunities within the AI infrastructure theme, describing it as 'the biggest thing' and noting that 'AI Plays account for well over 80% of this year's market returns.' The convergence of economic and innovation cycles is characterized as 'a powerful combination for concentrated growth investing.' Multiple areas are identified as attractive: semiconductor value chains, memory companies, power generation, earthmoving equipment, and tech hardware. However, the score is not higher because opportunities are concentrated in one mega-theme rather than broad-based, and the manager explicitly notes that outside of technology capex 'the economy would likely be languishing along.' The opportunity set is rich but narrow.
Time Horizon
The manager describes a multi-year thesis around a fundamental economic regime change, with memory companies signing commitments through 2030 and the characterization of HALO assets as secular rather than cyclical. The investment objective states a 'three to five-year time horizon or full market cycle' focus. However, the letter also discusses quarterly events, near-term model releases from Anthropic, and monitors productivity data that 'has not shown up yet' but is expected 'sooner rather than later.' This suggests a 2-4 year primary horizon with some catalyst dependency, placing it in the multi-year range but not at the decade-plus permanent capital level. The score reflects a clear medium-to-long-term orientation without extreme patience.
Top Conviction Themes
Key Catalysts
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