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 |
|---|---|---|---|---|---|---|
The core thesis is that UK equity valuations have become significantly decoupled from corporate and economic fundamentals, creating a once-in-a-generation buying opportunity, especially in small- and mid-cap stocks. During the first quarter of 2026, the fund's portfolios fell between 7.5% and 11.9%, underperforming smaller-company benchmarks. This underperformance was primarily driven by the portfolio's lack of exposure to surging energy and materials sectors and an indiscriminate sell-off in high-quality holdings caught in a broad, sentiment-driven AI disruption narrative. Despite these short-term headwinds, the underlying businesses continue to report solid operational performance. The fund remains focused on investing in highly resilient, cash-generative, and strategically valuable UK-listed businesses trading at severe discounts. While macroeconomic volatility, elevated geopolitical risks, and persistent domestic outflows continue to present near-term hurdles, tentative signs of returning international buyers and historically strong post-recession rebounds point to exceptional long-term return potential.
UK small- and mid-cap equities present a once-in-a-generation investment opportunity due to an extreme disconnect between resilient corporate operating performance and deeply discounted, narrative-driven market valuations.
While near-term volatility and macroeconomic uncertainties remain elevated, the medium-term outlook for UK equities is exceptionally compelling. Active, valuation-aware stock picking is positioned to add significant value as market narratives normalize and the disconnect between price and fundamental value closes.
As of Mar 31, 2026
Founded in 1857, Gresham House is one of the oldest UK companies still operating today, having evolved into a specialist alternative asset manager. In December 2023, the company was acquired by Searchlight Capital Partners L.P., a New York-based private investment firm, leading to delisting from the London Stock Exchange. The firm completed the acquisition of SUSI Partners AG in January 2026, becoming one of Europe's top ten energy transition asset managers. Under CEO Tony Dalwood's leadership, the company has demonstrated strong growth with £10.7 billion AUM as of December 2025, representing a 25% CAGR from 2018. The firm holds leading market positions as the UK's largest commercial forestry asset manager and second largest VCT manager.
Moderate Conviction Bullish
Market Conviction
A score of 0.75 represents high conviction. The manager names multiple specific portfolio holdings, details detailed case-study theses for several of them, and explicitly states that their positive conviction is 'particularly elevated today' despite recent underperformance.
Growth Outlook
A score of 0.75 reflects a constructive outlook. The manager is highly excited about the medium-term return prospects of UK equities, noting extreme discounts, but remains cautious about short-term macroeconomic and geopolitical headwinds.
Risk Appetite
A score of 0.75 indicates a strong net long posture. The manager has maintained full allocation to their high-conviction quality compounders, refusing to style-drift into defensive or resource sectors, and remains fully positioned for a small-cap rebound.
Capital Deployment
A score of 0.50 is assigned because the manager does not explicitly state near-term portfolio changes, cash accumulation, or net selling behavior, focusing instead on holding high-conviction positions and highlighting patience.
Forward Guidance
A score of 0.50 reflects neutral forward action guidance. The manager outlines high-conviction medium-term views but provides no specific portfolio reallocation targets, purchase schedules, or cash targets.
Language Signal
A score of 0.70 reflects constructive language. The commentary uses strong positive descriptors such as 'once-in-a-generation opportunity' and 'compelling risk/reward,' while balancing this with frank discussions of a 'difficult' quarter and 'frustrating' underperformance.
Perceived Risk
A score of 0.65 indicates moderately elevated perceived risk. The manager identifies active macro concerns including geopolitical stress in Venezuela/Iran, inflation volatility, shifting interest rate expectations, and structural AI disruption concerns.
Opportunity Density
A score of 0.90 indicates extremely rich opportunity density. The manager notes that valuations have decoupled from fundamentals, widening the gap between price and value to levels not seen in years, presenting ratings well below private equity takeover histories.
Time Horizon
A score of 0.75 reflects a multi-year investment horizon. The manager discusses five-year return bridges, describes their strategy as suited for 'patient investors,' and emphasizes that intrinsic value compounding occurs over several years rather than quarters.
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.
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