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 |
|---|---|---|---|---|---|---|
Giverny Capital's portfolio returned 13.7% in Q2 2026 versus 15.2% for the S&P 500, bringing year-to-date returns to 5.89% versus 10.21% for the Index. Manager David Poppe observes extreme market dispersion, with 210 S&P 500 stocks posting negative returns while the Index gained 10.2% in the first half. The manager attributes this to momentum-chasing behavior, with investors oscillating between fear of missing AI opportunities and fear of disappointing returns from massive data center investments. Despite underperformance, Poppe maintains conviction in quality holdings like Charles Schwab, Mastercard, JP Morgan, and Progressive, which continue growing earnings at healthy rates but trade at significant discounts to the Index. The portfolio's largest positions remain AI-exposed companies Alphabet, Arista Networks, and Taiwan Semiconductor, though Poppe trimmed both Alphabet and Arista after strong appreciation made them expensive. He redeployed proceeds into undervalued financials. The manager believes the market remains a weighing machine long-term and expects earnings growth to drive returns for his concentrated portfolio of 10-15 high-quality compounders.
Own high-quality earnings compounders with dominant competitive positions that are being undervalued by a momentum-driven market, while maintaining exposure to AI leaders despite elevated valuations.
The manager expects to continue owning high quality earnings compounders that will benefit from implementing AI capabilities and maintain dominant competitive positions. While acknowledging that top technology positions are expensive and future returns may be lower, the manager believes the best course is to continue owning terrific companies being left behind by momentum-chasing alongside technology leaders. The manager views current holdings outside technology as attractively priced despite healthy earnings growth.
As of Aug 4, 2026
David Poppe brings more than 25 years of investment experience as President and Co-Founder, including nearly 20 years at Ruane, Cunniff where he served as Chairman and CEO from 2016-2018. In 2010, he and co-manager Bob Goldfarb were named equity portfolio managers of the year by Morningstar for Sequoia Fund's performance. The firm operates as a partnership with François Rochon of Montreal-based Giverny Capital Inc., combining transatlantic investment expertise.
GCAM's investment process is founded on the core principles of Value Investing, buying shares in companies with durable competitive advantages when intrinsic value is meaningfully higher than current share prices. The firm expects to hold between 20 and 30 stocks with low portfolio turnover, holding top-flight management teams for years when identified. The approach emphasizes long-term fundamental analysis over short-term market movements.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The portfolio is concentrated with top 10 holdings representing 61.3% of assets and the manager names and sizes specific positions throughout the letter. He provides explicit position sizing language including Schwab as third-largest position, specific purchase prices for additions ($92 and $85 for Schwab, $205 for Progressive, mid-$330s for Kinsale), and clear catalysts with EPS growth targets. The manager states he is not inclined to change course despite underperformance and added to positions during weakness. However, the portfolio holds 15-20 positions rather than extreme concentration, and the manager acknowledges uncertainty around AI returns and trimmed expensive positions, preventing a score above 0.85.
Growth Outlook
Giverny's manager assigns a neutral 0.50 score to the market outlook. He explicitly states that he does not have an opinion on the duration of the conflict in Iran, future oil prices, or whether the US economy will sputter in the coming months, choosing instead to focus entirely on company-specific fundamentals.
Risk Appetite
Risk appetite is scored at 0.75 as the portfolio remains nearly fully invested with only 6% cash. The manager deployed capital into a major new long position in American Express during a 25% price drop and added to existing holdings, reflecting a constructive, risk-tolerant posture.
Capital Deployment
The manager engaged in capital rotation during the quarter, selling 20% of Arista and 17% of Alphabet to fund additions to Schwab, Kinsale, TWFG, and Progressive. This represents redeployment of proceeds rather than net new cash being put to work or cash being raised. No cash level changes are disclosed. The activity reflects selective repositioning from expensive to undervalued names rather than meaningful net deployment or de-risking, warranting a score near neutral with a slight positive bias for the willingness to add to out-of-favor positions.
Forward Guidance
Forward guidance is scored at 0.50. The manager does not outline aggressive future deployment plans or macro predictions, noting that while they do not lack ideas, they feel comfortable holding some dry powder (6% cash) during chaotic times.
Language Signal
The letter contains balanced directional language. Bullish terms include terrific businesses, healthy earnings growth, strong positions, attractive pricing, and quality compounders. Bearish language includes weird outcomes, extreme views, momentum-chasing, itchy trigger fingers, bubble concerns, moonshot dependency, and stocks being left behind. The manager uses cautious framing around AI investment returns and market dispersion while maintaining confidence in individual holdings. The net balance leans slightly positive but is heavily qualified.
Perceived Risk
Perceived risk is 0.65 due to active discussions of real-world headwinds, including the US bombing campaign against Iran, inflation uptick, and peak affluence risks. The manager also explores structural risks like AI-led white-collar recessions and headcount-licensing model challenges in software.
Opportunity Density
The manager sees selective opportunities in defined areas. He identifies multiple attractive financial stocks trading at significant discounts despite healthy earnings growth, including Schwab at 12x forward earnings versus 20x for the Index, and added to four different financial positions during the quarter. He describes some terrific companies being left behind and views them as attractively priced. However, he also notes that top technology positions are expensive with lower expected future returns, indicating the opportunity set requires selectivity rather than being broadly abundant.
Time Horizon
The manager opens the letter emphasizing that over decades stock appreciation correlates closely with earnings growth, and states in the long run the market is a weighing machine. He discusses multi-year EPS growth expectations for holdings like Schwab (56% over two years) and Mastercard (15% annually over the next few years, same as the past 20 years). The manager is willing to hold through short-term underperformance and added to positions during weakness. However, he also discusses near-term catalysts like Progressive's buyback program and provides specific 2027 EPS estimates, indicating a 2-3 year thesis horizon rather than permanent capital or decade-plus holding periods.
Top Conviction Themes
Key Catalysts
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