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 |
|---|---|---|---|---|---|---|
Kathmandu Capital delivered a strong Q2 2025 return of 16.64% net, outperforming both the S&P 500 and MSCI ACWI benchmarks despite navigating a ~30% portfolio swing driven by tariff-related volatility. The manager shifted 35% to cash mid-quarter before fully redeploying by period end, demonstrating tactical agility in turbulent markets. The portfolio emphasizes international diversification as a strategic advantage in an environment where American exceptionalism is being questioned and the U.S. faces a fragile economy with 120% debt-to-GDP ratio, declining dollar, and elevated market valuations. Key positions include ACM Research, a new holding positioned to benefit from China's semiconductor supply chain localization, and OMAB, a Mexican airport operator poised to capture nearshoring tailwinds. The manager maintains a cautious outlook, viewing the probability of economic downturn as higher than continued expansion, while patiently waiting for mispricing opportunities in volatile markets. The fund's nimble size and international focus are positioned to benefit from capital flows seeking opportunities outside the U.S. and early signs of convergence between U.S. and international equity markets.
Kathmandu Capital pursues a concentrated, international value strategy focused on mispriced small-cap opportunities across global markets, with particular emphasis on Asia and Latin America, while maintaining the flexibility to hold significant cash positions during periods of heightened volatility and elevated valuations.
The manager will continue to approach the market with caution and remain focused on delivering satisfactory long-term absolute returns. The fund anticipates continued convergence between U.S. and international equities as they patiently wait for unreasonable mispricing to emerge in what remains an extraordinarily volatile market. The manager believes the probability of an economic downturn is higher than continued expansion, though timing remains uncertain as policymakers continue to extend the current upcycle.
As of Jul 17, 2026
Vincent Lo, CFA, MBA, serves as Chief Investment Officer and brings extensive experience from prestigious institutions including Irvine Company, Ladenburg Thalmann, First Pacific Advisors, McKinsey & Co., and Columbia Business School's Value Investing Program. His journey includes overcoming 1,200 job rejections and working on the sell side covering cannabis before joining a billionaire's family office. Emmy Sobieski, CFA, MBA, serves as Fund Advisor with 25 years of institutional investment management experience, including co-managing a top-performing global technology fund and overseeing multi-billion dollar technology equity investments.
Kathmandu Capital employs a value-oriented, long-only, small-cap, internationally focused investment strategy with a concentrated portfolio approach. The fund's philosophy is inspired by Buddhist teachings studied at Neydo Tashi Choeling Monastery in Nepal, emphasizing discipline and open-mindedness in identifying great undervalued businesses in inefficient markets overlooked by institutional investors. The approach combines traditional value investing with adaptive elements, integrating momentum and growth strategies while implementing disciplined risk management. The fund focuses on competing primarily against retail investors through deep research and long-term focus in markets where institutional investors are often absent due to size or liquidity constraints.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The fund holds seven named positions with detailed thesis summaries for each, including specific catalysts, valuation metrics, and market share projections. The ACM Research discussion is particularly detailed with specific revenue projections ($7Bn incremental by 2030) and market share targets (14% to 25%). The OMAB thesis includes three distinct pillars with specific margin data (41% FCF margin). However, the portfolio is diversified across multiple geographies and sectors rather than concentrated, and the manager explicitly trims positions to reallocate capital, suggesting moderate rather than extreme conviction. The detailed position-level analysis and specific catalysts support a score in the moderate-to-high range, but the diversification and tactical rebalancing prevent it from reaching high conviction territory.
Growth Outlook
The manager rates the market outlook at 0.75 (Constructive). While they acknowledge the massive disruption from the sudden Middle East conflict in Q1, they stress that the macroeconomy remains resilient, indices have recovered to new highs, and hyperscaler capex continues to expand strongly.
Risk Appetite
The fund ended the quarter fully invested in names deemed core beneficiaries of the AI supercycle. Despite a major Q1 drawdown, they did not reduce net exposure or build cash, preferring to stay fully committed to their technology thesis.
Capital Deployment
The fund moved from 35% cash mid-quarter to fully invested by quarter end, representing a significant deployment of capital. This represents approximately a 35-percentage-point reduction in cash levels, which would typically score in the +0.70 to +0.85 range. However, the manager explicitly states this is tactical and they expect to continue adjusting cash balance swiftly, suggesting this is not a permanent shift but rather opportunistic deployment during volatility. The fund also trimmed NagaCorp to reallocate capital, indicating rotation rather than pure net deployment. Given the significant cash deployment but tactical nature and rotation component, this scores in the moderate deployment range.
Forward Guidance
The manager intends to hold core positions, avoid reactive overtrading, and keep exploring opportunities in Taiwan and China based on supply chain channel checks, rather than trading into volatility.
Language Signal
The letter contains a mix of directional language but leans slightly bearish overall. Bearish language includes fragile economy, little cushion, all-time high debt, probability of party stopping, lingering uncertainties, extraordinarily volatile, and caution repeated multiple times. Bullish language includes attractive opportunities, compelling margin of safety, bullish on long-term outlook, and positioned to benefit from nearshoring tailwinds. The balance tilts modestly toward risk and caution language, though not overwhelmingly so, placing this in mildly negative territory.
Perceived Risk
The manager identifies significant risk factors including escalations in Middle East conflict, U.S.-China trade friction, and semiconductor materials flow restrictions. However, they view these as near-term volatility rather than systemic threats to the structural AI supercycle.
Opportunity Density
The manager describes selective opportunities in defined areas, particularly international markets outside the U.S. The fund initiated a new position in ACM Research and maintains conviction in existing holdings like Gigacloud and OMAB, describing them as offering compelling margin of safety and attractive opportunities. However, the manager also trimmed NagaCorp to reallocate to more attractive opportunities, suggesting selectivity is required. The emphasis on patiently waiting for unreasonable mispricing to emerge indicates opportunities are not abundant but exist in specific areas. The international focus is presented as offering better opportunities than U.S. markets. This characterization of selective but identifiable opportunities in defined geographies places the score in the 0.55-0.79 range.
Time Horizon
The manager repeatedly emphasizes long-term focus, stating they will continue to focus on delivering satisfactory long-term absolute returns and describing this as a journey of a lifetime. The ACM Research thesis projects share gains through 2030, indicating a multi-year horizon. The manager describes remaining patient and supportive of Kaspi management through short-term challenges, believing the Turkish expansion will prove smart in hindsight. The OMAB thesis is built around a 50-year concession structure with 5-year MDP cycles. However, the fund also demonstrates tactical behavior by moving 35% to cash and back to fully invested within a single quarter, and discusses near-term catalysts like the BEAD program and MDP renewal. The combination of long-term language with specific multi-year catalysts but also tactical quarterly positioning places this in the 0.65-0.84 range, representing a multi-year thesis with some catalyst dependency.
Top Conviction Themes
Key Catalysts
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