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 |
|---|---|---|---|---|---|---|
Cedar Grove Capital Management employs a fundamental, long-term multi-strategy approach focused on owning high-conviction companies with durable tailwinds and resilient balance sheets trading at significant discounts to intrinsic value. In the third quarter of 2026, the strategy returned -12.7% net of fees, bringing year-to-date net performance to -26.2%, trailing the Russell 2000 and broader indices. Performance was primarily hindered by macro-driven multiple contraction following a sharp rise in the 10-year Treasury yield above 5%, alongside pronounced weakness in small-cap market breadth. Despite operational beats and raised guidance across core holdings, market prices declined substantially. Key risks center on persistent inflation pressures, elevated financing costs, and broader consumer discretionary softening. In response to what the manager perceives as an increasingly target-rich environment, portfolio positioning was shifted by closing non-performing special situations, taking profits on short-term rebounds, and expanding gross leverage to 106% across thirteen net long holdings.
Long-term compounding is achieved by investing in structurally sound, cash-generative businesses benefiting from durable industry tailwinds when macroeconomic volatility drives their valuations substantially below intrinsic worth.
The manager expects that the divergence between index-level resilience and declining breadth will eventually resolve, either via broader participation catching up or a final index-level correction that concludes the multi-month downturn. Over a multi-year horizon, the manager remains optimistic that owning cash-generative businesses with low financial leverage will deliver substantial compounding once rate volatility abates.
As of Oct 5, 2026
Cedar Grove Capital Management employs a Multi-Strategy Approach to Generating Long-Term Returns through concentrated positions in undervalued securities. The fund operates as a Multi-strategy investment fund focused on L/S, M&A Arbitrage, and other Special Situations. Led by founder and CIO Paul Cerro, the firm combines traditional hedge fund strategies with a significant research publishing operation that serves over 3,200 investors and generates substantial annual recurring revenue. The fund maintains a high-conviction approach with 5-15 concentrated positions while actively managing portfolio beta through strategic short positions and special situations investing.
The mandate for the fund is to identify both long and short-term asymmetric opportunities in undervalued and underfollowed securities to drive superior, risk-adjusted returns. Our management strategy allows for a multi-strategy approach that generates uncorrelated returns by utilizing our expertise in special situations and smaller-cap companies. We hold between 5 - 15 of our best ideas and ignore short-term volatility. With our ability to invest in various special situations and to actively take short positions, we can reduce overall portfolio beta by allocating asymmetric capital to these strategies.
Lead Portfolio Manager
High Conviction Bullish
Market Conviction
50
Growth Outlook
50
Risk Appetite
50
Capital Deployment
50
Forward Guidance
50
Language Signal
50
Perceived Risk
50
Opportunity Density
50
Time Horizon
50
Top Conviction Themes
Key Catalysts
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