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 |
|---|---|---|---|---|---|---|
Matrix delivered strong Q2 returns as markets rallied 15.2%, but remains cautiously optimistic given elevated valuations at 20x earnings. The manager actively rotated the portfolio, trimming overweighted Financials and Technology winners while adding to lagging Consumer Staples and Healthcare names. Portfolios are positioned to benefit from anticipated market broadening beyond concentrated leadership, owning attractively valued companies poised to lead in upcoming periods despite expected volatility.
Matrix Asset Advisors is positioned to benefit from market broadening beyond concentrated leadership, owning attractively valued companies in sectors that have lagged the rally but are poised to lead in upcoming periods.
The manager remains optimistic about the economy and cautiously optimistic about the stock market for the balance of 2026. Strong corporate earnings, the desire by the United States and Iran to end their war, and AI infrastructure spending are positive factors. However, modest expectations exist for the overall stock market given elevated valuations at more than 20 times estimated earnings. The manager has a more positive view for their portfolios, anticipating continued market broadening beyond a few favorite sectors will benefit performance, as they own many companies that have lagged, remain inexpensive, and are poised to lead in upcoming periods. Higher-than-usual volatility and many leadership rotations are expected in the second half of the year.
As of Jun 30, 2026
David A. Katz, CFA, founded Matrix Asset Advisors in August 1986 and serves as President and Chief Investment Officer. He has over 35 years of experience in value investing and holds the Chartered Financial Analyst designation. Under his leadership, the firm has grown from inception to manage over $1.19 billion in assets for 620 clients. Katz leads a 100% employee-owned firm with eight partners who have significant personal assets invested alongside clients, ensuring alignment of interests. The firm has maintained a disciplined Graham and Dodd value approach throughout various market cycles. Matrix Asset Advisors has been independently verified for GIPS compliance with no disciplinary actions or customer disputes. The firm serves individuals, families, pension plans, endowments, foundations and other institutional clients through separate account management.
Matrix Asset Advisors' foundation as investors is rooted in the precepts of Graham and Dodd, implemented as a highly disciplined Value-oriented approach. The firm believes that Value can be found across the broad spectrum of the economy, so they will 'go anywhere for value'. The strategy employs eight proprietary intrinsic value models to identify undervalued stocks across all industries and market conditions. The investment process combines both quantitative and qualitative research by a team of 4 analysts to assess stock opportunities. Portfolio construction focuses on identifying 30 to 40 Best Ideas based on attractive valuations, quality of balance sheets, and diversification contribution. The firm monitors and assesses risk at four levels - security, industry, sector and portfolio - relative to the benchmark. The sell discipline involves disposing of stocks when prices reach intrinsic values, fundamentals deteriorate, or better opportunities arise.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The manager demonstrates moderate conviction through specific position sizing actions (trimming overweighted names, adding to specific companies) and names 20+ individual holdings with explicit buy/sell decisions. However, the portfolio appears diversified across multiple sectors with many positions, and the language includes hedging around overall market expectations (cautiously optimistic, modest expectations). The manager provides clear rationale for individual positions like Abbott Laboratories and McDonald's with specific valuation metrics (16x earnings, 2.8% yield), but the broad diversification and measured approach to changes prevents this from reaching high conviction territory. The score reflects moderate conviction consistent with a diversified value strategy.
Growth Outlook
The manager is optimistic about the economy but only cautiously optimistic about the stock market. Positive factors include strong corporate earnings, expectations for an end to the Iran war, and AI infrastructure spending. However, the manager has modest expectations for the overall market given valuations at the high end of historical ranges (20x+ earnings), significant pockets of speculation, and the low S&P 500 dividend yield versus competitive Treasury yields. The outlook is constructive but acknowledges meaningful risks and valuation concerns, placing it in the mildly positive range.
Risk Appetite
The manager is selectively adding to positions in lagging sectors (Consumer Staples, Healthcare, select Technology) while actively trimming overweighted winners in Financials and Technology. For balanced accounts, the manager modestly reduced the equity overweight during Q2's rally. This represents selective deployment with a tilt toward risk management rather than aggressive positioning. The activity suggests a balanced approach with some caution, scoring in the mildly positive range but closer to neutral.
Capital Deployment
The manager engaged in significant rotation during Q2, selling Federal Express, trimming multiple overweighted positions in Financials and Technology, while adding to positions in Consumer Staples, Healthcare, and other lagging areas. For balanced accounts, the manager modestly reduced the equity overweight. This represents capital rotation and modest de-risking rather than net deployment. While new positions were added (Abbott Laboratories, McDonald's) and existing positions built, the proceeds came primarily from sales and trims rather than new cash deployment. The net effect is slight de-risking, scoring modestly negative.
Forward Guidance
The manager states they will continue to take advantage of higher prices to trim positions that become oversized or reach target prices, and will proceed at a measured pace if equities continue to rally. They seek to moderate and control additional capital gains for the balance of 2026. The language suggests selective, measured activity rather than aggressive deployment. The manager is watching for opportunities but emphasizes patience and tax management, placing forward guidance in the mildly positive range but close to neutral.
Language Signal
The letter contains balanced directional language. Bullish terms include optimistic, strong performance, good investment opportunities, attractive valuations, favorable positioning, and positive view for portfolios. Bearish language includes cautiously optimistic, modest expectations, high end of historical ranges, pockets of speculation, little margin for error, headwind, and wary of longer-term bonds. The net balance leans slightly positive given the emphasis on portfolio positioning and opportunities in lagging sectors, but the caution around overall market valuations and risks keeps this in the mildly positive range.
Perceived Risk
The manager identifies multiple specific risks with meaningful discussion: labor market softening from healthcare spending cuts and AI-driven job losses, overall market valuations at the high end of historical ranges with significant pockets of speculation and extended prices leaving little margin for error, the low S&P 500 dividend yield versus competitive Treasury yields as a headwind, risks in longer-term bonds from inflation and growing government deficits, and expectations for higher-than-usual volatility and leadership rotations. These risks are named and discussed with specific context, placing perceived risk in the moderate-to-elevated range.
Opportunity Density
The manager sees selective opportunities in specific areas of the market that have been left behind in the rebound, including Consumer Staples, Healthcare, and some Technology areas under pressure. They added multiple new positions and built existing ones during the quarter. However, the manager also characterizes the overall market as having modest expectations given elevated valuations, and emphasizes selectivity and measured activity. The opportunity set is described as requiring selectivity rather than being broadly abundant, placing opportunity density in the moderate range.
Time Horizon
The manager demonstrates a multi-year investment horizon through emphasis on companies with strong fundamentals, recurring revenues, long dividend histories (54 years for Abbott, dividend every year since 1976 for McDonald's), and willingness to build positions in areas currently under pressure. The letter discusses working through near-term issues at McDonald's and positioning for upcoming periods. However, the manager is also actively managing positions based on reaching target prices and overweighting, suggesting some catalyst awareness within a 1-3 year timeframe. The 40-year experience reference and focus on fundamentals over short-term volatility supports a multi-year but not permanent capital horizon, scoring in the upper-moderate range.
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 Matrix Asset Advisors 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.
