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 28, 2026
During the third quarter of 2026, Invesco Discovery Fund underperformed its Russell 2000 Growth Index benchmark (-9.39%), with Class A shares posting a net return of -14.65% net of fees, bringing year-to-date performance to 18.49% net of fees. Relative performance was pressured primarily by unfavorable stock selection in Information Technology and Industrials, which produced negative selection effects of -2.27% and -1.96% respectively. In contrast, security selection within Health Care contributed positively (+1.03%). From a portfolio exposure standpoint, the fund maintained pronounced sector overweights in Information Technology (24.3% vs. 20.0%) and Industrials (19.5% vs. 15.8%), counterbalanced by underweights in Consumer Discretionary (4.7% vs. 8.7%), Real Estate, and Health Care. Cash remained negligible at operational levels. The management team maintains a constructive macroeconomic framework for US equities, underpinned by resilient economic activity, solid corporate profitability, easing regulatory pressures, and moderating Middle East tensions. However, management highlights expanding macroeconomic bifurcation: the rapid expansion of the artificial intelligence ecosystem continues to power growth in corporate profits and economic output, whereas elevated interest rates and high energy costs disproportionately weigh on consumer-facing and rate-sensitive businesses. Portfolio activity focused on upgrading quality compounders. The team initiated new long positions in Semtech (SMTC), Manhattan Associates (MANH), and The Hanover Insurance Group (THG). Conversely, the fund exited MKS Inc. (MKSI) due to full valuations, Fabrinet (FN) amid production bottlenecks, and Modine Manufacturing (MOD) owing to persistent supply disruptions. Twist Bioscience (TWST), Repligen (RGEN), and Halozyme Therapeutics (HALO) led quarterly gains, while Allegro MicroSystems (ALGM) and Argan (AGX) detracted.
Technology-driven innovation continues to disrupt large portions of the global economy, offering superior risk-reward opportunities through disciplined investment in premier growth compounders.
The manager maintains a constructive outlook for US equities supported by resilient earnings and easing headwinds, while remaining selective amid bifurcated growth.
Neutral / Balanced
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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