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 |
|---|---|---|---|---|---|---|
Fairlight Alpha Fund returned -12.6% net in Q2 2026 and -8.6% year-to-date, underperforming the S&P 500's 10.2% first-half return, though the fund has delivered 835.1% cumulative returns and 35.6% annualized since inception in March 2019. The quarter saw cheap stocks become cheaper due to market regime shifts and Middle East geopolitical volatility, despite underlying business progress. Key positions include Dong A Eltek, a Korean OLED equipment manufacturer trading at extreme discounts with a monopoly in OLEDoS production for VR/AR headsets, and Valeura Energy, a low-cost Thai oil producer generating strong cash flow from elevated oil prices. CEMATRIX delivered record Q2 results with 76% revenue growth in its niche cellular concrete business. The manager is finding value in Europe and Asia while avoiding AI and technology stocks at unsustainable valuations, exemplified by SpaceX's 158x revenue multiple. The fund continues bottom-up research across global markets, focusing on mispriced businesses with durable competitive advantages in sectors overlooked by the broader market's focus on technology and AI.
Fairlight Alpha Fund pursues deep value opportunities in mispriced small-cap stocks across global markets, focusing on niche businesses with durable competitive advantages trading at significant discounts to intrinsic value, while actively avoiding overvalued technology and AI sectors.
The manager continues to research and find new ideas across Europe, Asia, and the rest of the world, noting there are many pockets of exciting businesses across a variety of sectors. Despite the CapEx drag from old economies into tech and AI, the manager sees good ideas to be found. The tone is constructive and focused on bottom-up stock selection in niche areas while avoiding overvalued technology sectors.
As of Aug 21, 2026
Nicholas Cregan serves as founding partner and portfolio manager with over 20 years of investment experience across domestic, US, and international markets, having previously held portfolio management positions at Evans and Partners and Schroder Investment Management in New York and Sydney. Will Dowd, CFA, is the other founding partner and portfolio manager who initially served as analyst since fund inception, bringing over a decade of investment and data analytics experience from prior roles at Evans and Partners and EY, with qualifications including Master of Finance and CFA designation. The nine-person team is employee-owned with principals investing the majority of their liquid assets in the business and fund to maximize alignment with investors and partners.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The letter demonstrates high conviction through detailed discussion of specific positions with concrete financial metrics. Dong A Eltek analysis includes precise valuations (KRW 100 billion market cap vs KRW 420 billion sum-of-parts), revenue figures (KRW 312 billion), and earnings (KRW 96 billion). Valeura Energy discussion includes realized oil prices ($106/bbl), quarterly revenue ($260 million), free cash flow ($105 million), and cash balances ($316 million vs $880 million market cap). CEMATRIX growth rates are specified (76% revenue growth, 100%+ operating income growth). The manager provides clear thesis explanations for each position and explicitly states what they are avoiding and why. The specificity of financial data, position sizing context, and willingness to hold through volatility indicate high conviction, though the diversified portfolio across multiple geographies and sectors prevents a score above 0.85.
Growth Outlook
Market outlook remains low conviction: Fairlight outperformed in volatile Q1 2026 driven by oil exposure and new infrastructure play Cematrix Corporation. Middle East conflict spiked oil prices above $160/barrel with ma...
Risk Appetite
Risk appetite posture is moderate conviction: Fairlight outperformed in volatile Q1 2026 driven by oil exposure and new infrastructure play Cematrix Corporation. Middle East conflict spiked oil prices above $160/barrel with ma...
Capital Deployment
The letter describes entering new Korean positions during the quarter, indicating some deployment activity. However, there is no explicit cash level data provided, and the manager describes a monitoring stance toward junior metal producers rather than active deployment. The fund is selectively adding positions but also actively avoiding entire sectors (AI, technology, space). The net activity appears to be modest selective deployment rather than aggressive capital deployment or meaningful de-risking, warranting a score slightly above neutral.
Forward Guidance
Forward guidance signal: Fairlight outperformed in volatile Q1 2026 driven by oil exposure and new infrastructure play Cematrix Corporation. Middle East conflict spiked oil prices above $160/barrel with ma...
Language Signal
The letter contains balanced directional language. Bullish terms include 'excellent results,' 'attractive,' 'mispriced stocks,' 'good ideas,' 'exciting businesses,' and 'value' appearing multiple times. Bearish language includes 'difficult valuation levels,' 'not investable,' 'uncertain,' 'volatility,' and warnings about financial reality catching up with the stock market. The net balance leans slightly positive given the emphasis on finding opportunities, but the tone is measured and selective rather than overwhelmingly bullish.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Fairlight outperformed in volatile Q1 2026 driven by oil exposure and new infrastructure play Cematrix Corporation. Middle East conflict spiked oil prices above $160/barrel with ma...
Opportunity Density
The manager explicitly states 'there are a lot of good ideas to be found' and 'many pockets of exciting businesses across a variety of sectors' when searching across Europe, Asia, and the rest of the world. The letter discusses multiple new positions entered during the quarter and notes they continue to research and find new ideas. However, the manager also characterizes the environment as requiring selectivity, noting they are not finding value in AI, technology, and space stocks, and are monitoring junior metal producers for entry points rather than deploying immediately. The opportunity set is described as selective but abundant in specific niches.
Time Horizon
The letter demonstrates a multi-year investment horizon with focus on durable competitive advantages and business fundamentals rather than near-term catalysts. The manager discusses holding through volatility driven by 'retail investor deleveraging and general market sentiment, rather than business fundamentals,' indicating willingness to look past short-term price movements. Analysis of Dong A Eltek focuses on structural competitive position (monopoly in OLEDoS) and long-term growth drivers (new facility for Perovskite solar). Valeura Energy discussion emphasizes building 'an extremely safe balance sheet' for continued growth. However, the letter does reference quarterly results and near-term project timing for CEMATRIX, preventing a score above 0.75. The overall emphasis is on multi-year business quality rather than imminent catalysts.
Top Conviction Themes
Key Catalysts
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