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 |
|---|---|---|---|---|---|---|
QV Investors is avoiding AI-related stocks trading at extreme valuations with uncertain long-term value creation, instead deploying capital into quality businesses with durable moats that have been sold down to rare discounts. The firm built positions in Constellation Software and Microsoft where AI disruption concerns are overblown, and added to existing quality holdings as capital chasing the AI narrative creates compelling opportunities in overlooked areas.
QV Investors is avoiding the elevated valuations and structural uncertainties in AI-related stocks, instead focusing on quality businesses with durable competitive advantages that have been sold down as capital has been diverted toward the AI narrative, offering better risk-adjusted opportunities at rare discounts.
While strong earnings growth in 2026 could drive markets higher into year end, the manager believes investors should focus on the certainty and durability of competitive moats rather than chasing current growth rates. The better risk-adjusted opportunities are in quality companies trading at discounts rather than in AI-related stocks with elevated valuations and uncertain long-term value creation.
As of Jul 13, 2026
QV Investors Inc. is an independent, employee-owned asset and wealth management firm based in Calgary, Alberta, Canada, with nearly 30 years of consistent quality and value-based investment philosophy. Founded in 1996 as QVGD Investors Inc., the firm is wholly employee-owned with each team member holding significant personal investments in QV funds, ensuring complete alignment with investor interests. The firm serves Canadian institutions and high-net-worth individuals through seven pooled funds covering Canadian and global equities, fixed income, and balanced strategies, managing $5 billion in total assets under management.
Quality Value / Growth
Lead Portfolio Manager
Mathew Hermary
Managing Partner
Moderate Conviction Bullish
Market Conviction
The manager names specific positions (Constellation Software, Microsoft, Intact Financial, Stella-Jones, Stantec, Netflix) and describes building or adding to them with clear rationale. The letter articulates a definitive thesis around avoiding AI-related stocks and focusing on quality at discounts. However, the portfolio appears diversified across multiple strategies (Canadian Equity, Global Equity, Small Cap) with no extreme concentration or position sizing disclosed. The conviction is moderate-high based on named positions and clear directional views, but lacks the concentration and explicit sizing that would push it above 0.75.
Growth Outlook
Market outlook remains high conviction: QV Investors maintained disciplined fundamental investing through Q1 2026 geopolitical volatility that spiked oil prices and pressured technology stocks. The firm recycled capital ...
Risk Appetite
Risk appetite posture is very low conviction: QV Investors maintained disciplined fundamental investing through Q1 2026 geopolitical volatility that spiked oil prices and pressured technology stocks. The firm recycled capital ...
Capital Deployment
The manager describes building positions in Constellation Software, re-initiating Microsoft, and adding to multiple existing holdings (Intact Financial, Stella-Jones, Stantec, Netflix) where valuations compressed. This indicates moderate deployment activity. However, no cash level changes are disclosed, and the deployment is described as selective rather than aggressive. The activity represents rotation and selective adding rather than a significant reduction in cash levels, warranting a moderate positive score.
Forward Guidance
Forward guidance signal: QV Investors maintained disciplined fundamental investing through Q1 2026 geopolitical volatility that spiked oil prices and pressured technology stocks. The firm recycled capital ...
Language Signal
The letter contains significant bearish language around AI valuations being silly, structural uncertainties, gambling mood, margin debt at extreme levels, momentum at extremes, and historical parallels to late bull markets. Bullish language focuses on opportunities in quality stocks at discounts and specific holdings. The net balance tilts slightly negative given the weight of risk warnings and cautionary framing, though opportunity language prevents a more negative score.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. QV Investors maintained disciplined fundamental investing through Q1 2026 geopolitical volatility that spiked oil prices and pressured technology stocks. The firm recycled capital ...
Opportunity Density
The manager sees selective opportunities in quality stocks that have fallen to rare discounts, describing this as occurring on only two prior occasions historically. Multiple specific names are identified as attractive (Constellation Software, Microsoft, Intact Financial, Stella-Jones, Stantec, Netflix). However, the manager explicitly characterizes the environment as requiring selectivity and avoids large swaths of the market (AI-related stocks). This represents a selective opportunity set in defined areas rather than broad abundance, warranting a score in the upper-moderate range.
Time Horizon
The manager discusses multi-year earnings growth drivers for Constellation Software through tuck-in acquisitions and Microsoft's strengthening ecosystem over time. The focus on quality stocks with durable competitive advantages and stable returns on capital implies a multi-year holding period. However, the letter also discusses quarterly positioning changes and near-term market dynamics. The thesis appears oriented toward 2-4 year value realization rather than permanent capital or decade-plus horizons, warranting a score in the multi-year range without extreme patience indicators.
Top Conviction Themes
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