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 Oct 12, 2026
During the third quarter of 2026, the strategy did not disclose specific net performance figures, but benchmark context showed global large-cap indices posting modest advances, with the S&P 500 up 2.30% and MSCI World gaining 1.88%, while small caps retreated sharply as the Russell 2000 dropped 7.23%. The portfolio continues to maintain disciplined risk exposure, keeping holdings at a significant valuation discount to benchmark indices on multiple valuation metrics while actively exploiting market dispersion. The macroeconomic environment shifted meaningfully as the Federal Reserve raised rates 25 basis points to 3.75-4.00% and the 10-year Treasury yield surpassed 5%, driven by rising oil prices and federal deficits. This interest rate shift exposed heavily levered businesses reliant on floating-rate debt. Simultaneously, market breadth narrowed severely, with AI infrastructure spending and hyperscaler capex projected to reach $800 billion in 2026. Data from UBS indicates that AI-related investments and consumption accounted for over 100% of U.S. GDP growth over the trailing four quarters, while the remainder of the economy contracted by 0.7%. Extreme investor sentiment, reflected by Leuthold Group courage/fear indicators, reached levels witnessed only prior to the 2000 and 2008 market downturns. In response to indiscriminate selling across businesses perceived to face technological disruption, the manager selectively deployed capital into high-quality franchises categorized by the market as 'AI at Risk'. Core additions include core banking software provider Jack Henry & Associates, multi-brand IT solutions leader CDW Corp., and global data analytics provider RELX PLC, all purchased at steep historical discounts to intrinsic value.
Capitalize on market overreactions by investing in high-quality, resilient franchises with strong competitive moats that trade at substantial valuation discounts due to indiscriminate AI disruption fears.
The manager expects forward equity returns from broad market indices to moderate significantly from recent multi-year compounding averages, cautioning that prevailing investor greed and macroeconomic fragility outside of AI infrastructure spending create an unfavorable risk-reward profile for momentum-driven assets. Over the coming years, market participants are expected to move past blanket AI disruption narratives and recognize the enduring economic moats, pricing power, and operational efficiencies embedded within high-quality software, data, and IT solutions franchises, resulting in substantial valuation re-ratings for select contrarian holdings.
Moderate Conviction Bullish
Market Conviction
Growth Outlook
Risk Appetite
Capital Deployment
Forward Guidance
Language Signal
Perceived Risk
Opportunity Density
Time Horizon
Top Conviction Themes
Key Catalysts
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