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, global financial markets displayed stark divergences as large-cap benchmarks posted modest gains while U.S. small-cap equities experienced sharp declines, exemplified by the Russell 2000 falling 7.23%. Small-cap underperformance was primarily driven by financing vulnerabilities rather than technological headwinds, as smaller businesses carry more than double the leverage of large caps and hold 32% floating-rate debt compared to just 6% for the S&P 500. Portfolio cash and allocation frameworks remain positioned at substantial valuation discounts relative to broad benchmarks, exercising disciplined capital preservation amid excessive market exuberance. The macroeconomic landscape tightened noticeably following the Federal Reserve's 25-basis-point rate hike to 3.75-4.00% alongside 10-year Treasury yields surpassing 5% for the first time since 2007. Concurrently, investor sentiment indicators have reached extreme greed readings previously observed only prior to the 2000 and 2008 downturns. Economic expansion and index concentration remain overwhelmingly dependent on artificial intelligence capital expenditures, with non-tech investment and standard domestic economic consumption contracting by 0.7% year-over-year when stripping away AI-linked wealth effects and infrastructure buildouts. In response to wholesale market dislocations, portfolio activity focused on exploiting the indiscriminate sell-off in high-quality enterprises categorized under the 'AI At Risk' umbrella. The strategy initiated and expanded positions into resilient franchises trading at historic valuation discounts of two to three standard deviations. Key long investments built into recent weakness include core enterprise banking software provider Jack Henry & Associates, technology procurement orchestrator CDW Corp., and specialized data and analytics compounder RELX PLC.
Exploit extreme crowd sentiment and valuation dislocations by investing in high-quality, durable franchises with entrenched moats that have been indiscriminately penalized by broad market AI disruption narratives.
The manager anticipates that the extraordinary multi-year equity returns will face headwinds as elevated valuation multiples collide with higher interest rates and extreme sentiment. However, as the market moves past blanket AI disruption narratives, durable franchises trading at historically wide valuation discounts should re-rate significantly higher on their own fundamental merits.
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
Every insight in this database connects to the original source. Read the actual thesis, see the actual concerns, and make your own call.
Buyside Digest has no business relationship, partnership, agency, sponsorship, endorsement, or affiliation with FMI Small Cap Equity or any other manager whose content appears on the Service, except where expressly stated. We do not receive Manager Content directly from managers in most cases; content is collected from publicly available sources. Managers have not necessarily reviewed, approved, authorized, or endorsed our display of their content, our editorial commentary, our metadata extraction, or our classifications. Use of a manager’s name is for accurate attribution and identification purposes only, under principles of nominative fair use.
Buyside Digest does not independently verify the regulatory status, registrations, licensing, qualifications, credentials, or professional standing of managers whose content appears on the Service. We do not represent that managers are properly registered with applicable regulatory bodies, that their content complies with applicable securities laws, or that their performance representations are accurate. Inclusion of a manager in our database is based on the publicly available nature of their content, not on our verification of their regulatory status or content compliance. Users are responsible for conducting their own due diligence on any manager.
Performance data, returns, assets under management (“AUM”), and similar figures displayed on this page are sourced from publicly available manager communications (including investor letters), public filings, or other third-party sources. Buyside Digest does not independently verify performance figures, calculate returns, or audit manager-reported data. Such figures: May be selectively reported by the manager; May use non-standard calculation methodologies; May not reflect fees, expenses, taxes, or other costs; May be inconsistent across reporting periods; May be outdated. Past performance is not indicative of future results. Performance figures should not be relied upon for investment decisions without independent verification. Users should request audited performance data directly from the manager and conduct their own due diligence.