| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 20.06% | 31.15% |
Rewey Asset Management's SMID Value Composite gained 20.06% in Q2 2026, outperforming the Russell 2500 Value index which rose 18.50%, bringing year-to-date returns to 31.15%. The manager believes the rotation from large-cap Mag-7 stocks to smaller caps continued in the quarter, driven by valuation discounts, improving earnings, and domestic revenue exposure. Despite economic cooling to 1.2% GDP growth due to Iran conflict uncertainty and oil price spikes, capital markets surged with $104 billion in IPO issuance, signaling investor confidence. The portfolio added five new positions including Vontier, an industrial technology company trading at 8.7x 2026 PE with strong free cash flow generation and Danaher Business System discipline. Ultra Clean Holdings delivered a 127.81% return on semiconductor capital spending inflection driven by AI memory demand. The manager holds 31 positions with 6.83% cash, maintaining focus on financially strong companies with 2-3 year value creation catalysts. Seven holdings have net cash balance sheets and eight trade at or below 1.5x book value. Regional banks remain attractive with strengthening fundamentals and potential Basel capital relief.
Rewey Asset Management focuses on financially strong small and mid-cap companies trading at attractive valuations with clear value-creation plans over a 2-3 year horizon, positioned to benefit from the ongoing rotation away from large-cap tech-heavy benchmarks toward more undervalued and neglected SMID cap stocks.
The manager believes the negative impacts of government shutdowns and the Iran conflict should continue to ebb over 2H26, with the 1H26 spike in inflation slowly unwinding as well. While the path to peace with Iran will likely remain bumpy, oil prices are likely to keep declining from conflict-inflated levels. The domestic economy looks solid, driven by business confidence, the administration's re-shoring initiatives, and the surge in data center construction. If these factors continue over 2H26, the rotation towards smaller caps is likely to not only continue but likely accelerate as investors gain more confidence to look beyond the concentrated trading patterns of recent years.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 16 2026 | 2026 Q2 | CCRN, OFIX, UCTT, VNT, WBS | Capital markets, defense, industrials, Regional Banks, semiconductors, Small Cap Rotation, SMID Cap, value |
UCTT OFIX VNT |
Rewey Asset Management's SMID Value strategy returned 20.06% in Q2 2026, capturing the ongoing rotation from large-cap tech to undervalued small and mid-caps. The manager added Vontier at compelling 8.7x PE valuation while trimming Ultra Clean after 127% surge on semiconductor cycle inflection. Portfolio holds 31 concentrated positions in financially strong companies with clear catalysts, positioned for continued small-cap outperformance as inflation ebbs and economic growth stabilizes. |
| Apr 15 2026 | 2026 Q1 | DNOW, HBAN, KD, UCTT | energy, Iran, Regional Banks, Rotation, semiconductors, small caps, value |
UCTT KD DNOW |
RAM SMID outperformed 9.21% vs 4.77% for Russell 2500 Value despite Iran conflict volatility. Continued rotation from large-cap tech to neglected small caps drove outperformance. Semiconductor recovery and regional bank opportunities remain key themes. Portfolio maintains focus on financially strong companies positioned for 2-3 year value creation regardless of geopolitical outcomes. |
| Jan 18 2026 | 2025 Q4 | BR, CADE, DFIN, HOLX, LAKE, MEC | AI, Gdp, inflation, rates, small caps, technology, value |
MEC LAKE DFIN |
Small-cap value manager sees compelling opportunity from extreme valuation disparities with large-cap tech and expects rotation driven by economic tailwinds. Portfolio benefits from strengthening GDP growth, Fed rate cuts supporting cyclical industries, and fiscal policy stimulus. Key risks include persistent inflation and job market weakness, though these could force additional Fed accommodation. |
| Oct 12 2025 | 2025 Q3 | AMAT, III, KD, LRCX, UCTT, VREX, WMT | AI, Cyclical, Fed Rates, Labor Market, semiconductors, small caps, value |
VREX KD UCTT |
Small-cap value manager delivered 10.70% in 3Q25, outperforming benchmarks as size rotation began. Fed rate cuts and improving economic conditions support cyclical recovery thesis. AI implementation drives productivity while pressuring employment, forcing continued Fed easing. Portfolio positioned for rotation with concentrated holdings and selective cash deployment. Attractive valuations after years of underperformance create compelling opportunity. |
| Jul 17 2025 | 2025 Q2 | DCO, HOLX, LAKE, OFIX | active, defense, Medical Devices, small caps, SMID, undervalued, value |
DCO LAKE OFIX DCO LAKE OFIX |
RAM Smid composite gained 6.11% in 2Q25 but trails year-to-date. Manager believes small and SMID caps remain undervalued with strong fundamentals. Portfolio concentrated further with cash reduced to 5.35%. Ducommun surged on defense spending while Lakeland declined on tariff concerns. Increased Orthofix Medical position on compelling valuation. Expects rotation from large cap tech to benefit smaller caps. |
| Mar 31 2025 | 2025 Q1 | AEM, BA, DCO, PDCO, RTX, WDOFF, ZYXI | aerospace, defense, gold, small caps, SMID, tariffs, Trade Policy, value |
AEM ZYXI DCO |
RAM's SMID strategy declined 6.97% in Q1 amid tariff uncertainty, maintaining defensive cash positioning while identifying opportunities in defense, aerospace, and neglected small-mid caps. Manager expects continued volatility but views tariffs as ultimately deal-making tool rather than permanent policy. Focus remains on financially strong companies with visible 2-3 year value creation potential at attractive valuations. |
| Jan 18 2025 | 2024 Q4 | ARIS, AVNS, BKR, HAL, KD, SLB, WFRD | Concentration, neglect, Oil Services, small caps, SMID, value |
KD AVNS WFRD |
Rewey Asset Management's concentrated SMID strategy delivered 27.31% returns in 2024, outperforming benchmarks for six consecutive years. The 32-position portfolio targets undervalued small and mid-cap companies with strong balance sheets. Manager sees significant opportunities from index-driven neglect and expects rotation from large-cap tech concentration to benefit small-cap value stocks amid Fed rate cuts and increased M&A activity. |
| Oct 31 2024 | 2024 Q3 | AAPL, AMZN, GOOG, INTT, KD, LWAY, META, MSFT, NVDA, ORCL, SAP, TSLA, VMW | active management, rates, small caps, technology, value |
LWAY INTT KD |
Small-cap value rotation accelerated in Q3 as Fed rate cuts and investor neglect created opportunities. Portfolio outperformed with 9.83% gains versus benchmark's 9.63%. Active selection beats ETFs in identifying profitable small-caps among index constituents with negative earnings. Concentrated holdings like Kyndryl offer significant upside as rotation from large-cap concentration continues into 2025. |
| Jul 16 2024 | 2024 Q2 | AAPL, AMZN, GOOGL, HQY, III, LAKE, MSFT, NVDA, RELL, WBS | Regional Banks, Rotation, semiconductors, small caps, technology, value | WBS | Strong Q2 outperformance driven by small-cap value focus while mega-cap concentration creates rotation opportunity. Portfolio of financially strong companies at discounted valuations positioned for soft landing scenario. Key holdings Richardson Electric and Webster Financial offer compelling risk-reward despite sector headwinds. Manager sees neglect-driven opportunities as passive flows ignore quality smaller companies. |
| May 9 2024 | 2024 Q1 | 8035.T, AMAT, ARIS, CAT, COLB, GE, LRCX, MKSI, RELL, WAB | Banking, Commercial real estate, energy, semiconductors, small caps, value, water |
ARIS COLB RELL |
RAM's SMID value strategy gained 5.02% in Q1, led by ARIS Water Solutions' 71.99% surge on water recycling recognition. Added Richardson Electronics for semiconductor cycle recovery and green energy upside. Columbia Banking fell on overdone commercial real estate fears. Portfolio emphasizes financial strength with strong balance sheets and 3-5 year growth potential in undervalued small-mid caps. |
| Jan 18 2024 | 2023 Q4 | ARIS, BDC, CADE | Fed policy, rates, Regional Banks, small cap, value, water | ARIS | SMID value composite outperformed with 19% annual returns, positioning for continued rotation from large-cap concentration. Portfolio emphasizes financial strength with low leverage holdings. Added ARIS Water Solutions at attractive valuation in Permian water treatment space. Manager expects long-term trend favoring small-cap value over market timing approaches. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
Semiconductor CycleMemory chips are now in short supply as artificial intelligence has become a massive consumer of memory. The manager believes this semiconductor upcycle is still in its early stages. Ultra Clean Holdings surged 127.81% on strong quarterly results and a sharp inflection in the outlook for semiconductor capital spending. |
Memory AI Semi Equipment UCTT |
Regional BanksThe manager sees regional banks as inexpensive with strengthening fundamentals including revenue growth, efficiency gains, credit costs and capital generation. The 90-day comment period on the Revised Standardized Approach ended in June without significant pushback, which the manager views as a potential positive for significant capital relief for smaller regional banks. |
Banks Capital Relief Basel Valuation | |
DefenseDefense and aerospace was highlighted as a sector theme that returned strong results in Q2 2026. The manager continues to hold positions in this sector as part of their portfolio strategy. |
Aerospace Defense Spending | |
Capital MarketsCapital markets fundraising surged in Q2 2026 with IPOs raising $104 billion across 48 deals, the strongest for IPO issuance since 2021. Total fundraising including BDCs, SPACs, and secondary offerings also surged. The manager views this voracious investor appetite for new equity as a clear sign that investors do not think the Iran conflict will have lasting negative implications on markets or the broader economy. |
IPOs Equity Issuance Risk Appetite | |
Small CapsThe Russell 2500 Value gained 18.50% in the quarter versus 15.20% for the S&P 500. The manager believes the rotation away from large-cap Mag-7 dominated indices continued in Q2 2026, driven by structural factors of valuation discounts, improving earnings, and domestic revenue exposure. If inflation ebbs and GDP remains strong, this rotation can continue. |
Rotation Valuation Outperformance | |
Industrial MachineryThe manager initiated a position in Vontier, a $4.2 billion industrial technology company providing fueling equipment, payment systems, and automotive repair tools. Vontier is well positioned to benefit from ongoing modernization of retail fueling stations and operates under the Danaher Business System. The manager sees compelling valuation at 8.7x 2026 PE with a price target of $45, up over 55% from current levels. |
Fueling Equipment Productivity Free Cash Flow Danaher Business System | |
| 2026 Q1 |
Regional BanksManager sees continued neglect and undervaluation in regional banks despite solid fundamentals. Views recent concerns about private credit and BDCs as misplaced when applied to regionals. Fed capital relief proposal could drive increased share repurchases and M&A activity. |
Regional Banks Capital Relief Credit Quality Valuations M&A |
Semiconductor CycleSharp inflection in semiconductor capital spending driven by AI memory demand. Memory chips in short supply as AI becomes massive consumer of memory. Major chipmakers announcing significant capex increases with upcycle in early stages. |
Memory AI Capex Semiconductors Upcycle | |
EnergyIran conflict drove oil prices up 76% to $101 per barrel. Prolonged conflict could sustain higher oil prices and inflation. Potential catalyst for breaking US upstream and chemical downstream spending out of three years of stagnant growth. |
Oil Iran Conflict Upstream Petrochemicals | |
Small CapsContinued rotation from large-cap tech toward neglected small and SMID-cap sectors. Russell 2500 Value outperformed while Magnificent 7 declined. Trend expected to persist driven by elevated mega-cap valuations and relative cheapness of smaller stocks. |
Rotation Valuations Outperformance Neglect Tech | |
| 2025 Q4 |
Small CapsForeign small caps dramatically outperformed US small caps in 2025, with Foreign Developed Small Cap returning +34.1% versus US Small Cap at +11.6%. The dispersion between geographies was extreme, creating two very different small-cap markets depending on positioning. |
Foreign Developed Dispersion Geography Performance |
ValueValue significantly outperformed growth in foreign small caps, with fund category results showing value ahead by 68.4% over five years versus 35.4% in index data. This disconnect suggests index returns have understated the opportunity set and valuation reset in growth. |
Growth Dispersion Valuation Reset Opportunity | |
QualityThe market increasingly rewarded companies with weaker fundamentals, with the lowest-quality funds outperforming highest-quality peers by 24.2% in 2025. This speculative environment has been challenging for quality-focused managers like Grandeur Peak. |
Fundamentals Speculation Dispersion Performance Challenge | |
EarningsPortfolio companies delivered strong earnings growth of 16.4% in 2025, exceeding estimates, with projected acceleration to 21.4% in 2026. The firm maintains focus on earnings growth as the north star for long-term stock performance. |
Growth Estimates Acceleration Performance Focus | |
AIAI poses real threats to the Philippines BPO industry which accounts for nearly 10% of GDP, with 7% of BPO jobs being eliminated despite 12% new job creation. The firm remains skeptical of industry claims about successfully upskilling and expanding higher value-add services. |
BPO Philippines Jobs Threat Skeptical | |
| 2025 Q3 |
Small CapsManager sees rotation from large-cap to small and smid-cap stocks beginning, with smaller cap indices outperforming in 3Q25. A modest 1% reallocation from S&P 500 to Russell 2500 Value would equate to buying 11% of that index, creating potential for significant outperformance as Fed cuts rates and economic conditions improve. |
Rotation Outperformance Russell Liquidity Valuation |
Semiconductor CycleManager believes the semiconductor capital equipment cycle has begun to inflect positively after weakness in first half 2025. Companies like Ultra Clean Holdings are positioned to benefit from cyclical recovery in semi-capx spending, with inventories stabilizing and end market demand strengthening in late 2Q25. |
Capx Recovery Equipment Foundry Memory | |
AICompanies are aggressively implementing AI to drive cost optimization and productivity gains. Management teams indicate clients are investing heavily in AI infrastructure while cutting costs elsewhere, with efficiency gains expected to dwarf the early 2000s internet productivity boom. This trend is driving labor reductions to fund AI investments. |
Productivity Infrastructure Automation Cost Implementation | |
RatesFed cut rates 25 basis points in September despite inflation above target, driven by weak labor market conditions. Manager expects continued rate cuts due to AI-driven job losses pressuring the Fed's employment mandate, with consensus expecting additional 25-50 basis points of cuts in fall 2025. |
Fed Employment Cuts Mandate Labor | |
| 2025 Q2 |
Small CapsManager believes small and SMID caps remain neglected and undervalued with many names fitting criteria for long-term selection. Active stock selection is appropriate for smaller caps due to limited liquidity in ETFs, ability to avoid weaker companies, and vast under-researched universe with over 5000 equities providing alpha generation opportunities. |
Value Active Alpha Undervalued Selection |
DefenseCommercial Aerospace & Defense sector remains supported by strong order flows and production from Boeing and Airbus. European NATO countries have committed to increasing military spending to 5% of GDP over time, providing tailwinds for defense-related holdings like Ducommun. |
NATO Military Aerospace Boeing Airbus | |
Medical DevicesOrthofix Medical represents compelling valuation opportunity in medtech sector following significant decline. Company is gaining share in key markets with prolific new product introduction schedule across Spine, Bone Growth Therapy, and Orthopedics segments. Management targeting mid-teens EBITDA margins by 2027. |
Spine Innovation Margins Growth FDA | |
| 2025 Q1 |
Trade PolicyTrump's tariffs represent the dominant market theme in Q1 2025, creating uncertainty about negative economic impacts. The manager views tariffs as Trump's method to reduce budget deficit and spur domestic production, but believes Trump will ultimately seek deals rather than maintain high tariff levels. |
Tariffs Trade Budget Domestic Deals |
Defense SpendingThe aerospace and defense sector could see revenue growth regardless of tariff impact or economic slowdown. The US needs to rebuild stockpiles sent to Ukraine and Israel, replace equipment left in Afghanistan, and re-tool for 21st century threats like drone and electronic warfare. |
Military Procurement Ukraine Israel Drones | |
AerospaceBoth Boeing and Airbus have struggled to deliver planes despite strong demand and backlogs. Production rates at both companies should continue to improve off the bottom, driving higher sales and earnings through their supplier base. |
Boeing Airbus Production Backlogs Suppliers | |
GoldAgnico Eagle was the strongest percentage gainer in the quarter on strong gold pricing, though the position was sold as it reached price target. The manager continues to own Wesdome Gold Mines which is forecast to post strong production growth and cost reductions. |
Gold Mining Production Pricing Abitibi | |
Small CapsThe manager sees fertile hunting ground in small-mid cap stocks despite risks in small cap ETFs due to companies with negative earnings. Active management allows avoiding these through stock selection, with 672 of 1796 companies in Russell 2500 value having negative income. |
Russell Selection Earnings Active Management | |
| 2024 Q4 |
Small CapsManager sees significant neglect and undervaluation in small and mid-cap stocks driven by the rise of index investing. Believes reallocation from large-cap tech concentration could drive substantial inflows to small/mid-cap space. Portfolio focuses on profitable companies within the Russell 2500 universe. |
Small Caps Value Neglect Indexing Rotation |
Oil ServicesAdded Weatherford International as a globally diversified oilfield services provider trading at significant discount to peers. Company has strengthened balance sheet since 2019 restructuring and offers exposure to high-margin segments including offshore drilling and digital evaluation. Sees margin expansion potential and possible M&A target. |
Oil Services Weatherford Restructuring Margins M&A | |
ValuePortfolio constructed around undervalued and neglected equities with strong financial metrics. Thirteen holdings trading at less than 1.5x book value, eight holdings with net cash positions. Focus on companies with financial strength, growth ability, and discounted valuations. |
Value Undervalued Book Value Financial Strength Neglect | |
| 2024 Q3 |
Small CapsManager believes small and smid-cap value stocks are experiencing a rotation driven by Fed rate cuts and investor neglect. The Russell 2500 Value outperformed the S&P 500 in Q3, and the manager sees this as the beginning of a broader trend supported by undervaluation, Fed rate cuts, and soft economic landing expectations. |
Small Caps Value Rates Neglect |
RatesThe Fed delivered a 50 basis point rate cut in September with dot plot projecting rates falling to 4.4% by year-end and 3.4% in 2025. Manager views this as positive for small and mid-cap stocks and expects continued rate cuts to drive performance through Q4 2024 and into 2025. |
Rates Fed Monetary Policy | |
ValueManager emphasizes active stock selection over ETFs in small-cap value, noting that 666 of 1871 securities in the Russell 2500 Value index have negative earnings. Their investment philosophy focuses on financial strength, ability to grow, and discounted valuations to identify profitable companies. |
Value Active Management ETFs | |
| 2024 Q2 |
Small CapsManager believes small and mid-cap stocks are positioned for strong performance due to cooling inflation, potential soft landing, and likely rotation away from concentrated large-cap technology positions. The concentration in mega-cap stocks has created neglect and valuation opportunities in smaller companies. |
Rotation Valuation Neglect Concentration Outperformance |
Commercial Real EstateManager sees investor fears around commercial real estate as creating opportunities, particularly in regional banks like Webster Financial. While acknowledging sector headwinds, the manager believes quality underwriting and well-staggered maturities create value opportunities. |
Banking Credit Underwriting Opportunity Fear | |
Semiconductor CycleRichardson Electric positioned for recovery as semiconductor equipment cycle bottoms. The company noted Q1 2024 as the trough, with additional growth opportunities in wind turbine battery replacement and diesel locomotive applications. |
Recovery Trough Equipment Cycle Growth | |
Regional BanksManager sees tremendous value in regional banks like Webster Financial, which have been shunned by investors expecting rate cuts. Strong capital ratios, diversified deposit base, and growth potential create compelling opportunities despite commercial real estate concerns. |
Value Deposits Capital Growth Opportunity | |
| 2024 Q1 |
Semiconductor CycleRELL is suffering from significant investor neglect due to the downcycle in the semiconductor capital equipment cycle. The manager sees substantial recovery potential as the cycle turns, with the CHIPS Act, AI, PC refresh cycle, 5G, EVs and autonomous driving as drivers. RELL's customers like LRCX are trading at all-time highs while RELL trades near multi-year lows. |
Semi Equipment Semiconductors AI 5G Electric Vehicles |
Energy TransitionRELL's Green Energy Solutions unit develops engineered solutions for replacing lead acid batteries in windmills and locomotives. Their battery replacement modules are approved for GE wind turbines and last up to 10 years versus 2 years for lead acid batteries. The manager sees this as a significantly neglected source of strong earnings upside. |
Wind Battery Manufacturers Energy Storage Renewable Components Green Energy | |
WaterARIS Water Solutions was the strongest performer, up 71.99% in the quarter. The manager views ARIS as extremely undervalued and misunderstood, as its business focuses on recovering and recycling water associated with oil and gas production rather than being dependent on commodity prices. They see a credible path to improving revenues and margins in core operations. |
Water Oil Services Recycling Environmental Services Energy | |
Commercial Real EstateColumbia Banking Systems was the weakest performer, falling 22.91% due to general fears of commercial real estate that the manager believes are overdone. COLB has more commercial loans but the manager thinks fears of its non-occupied CRE portfolio are misplaced given its 51% loan-to-value ratio and 0.00% charge-off rate in 4Q23. |
Commercial Real Estate Regional Banks Credit Stress Banking Real Estate | |
| 2023 Q4 |
ValueSmall and mid-cap value outperformed in Q4 2023 rally, with Russell 2500 Value gaining 6.81% in final weeks versus S&P 500's 2.78%. Manager believes value sector was oversold and sees continued appreciation potential as investors rotate from concentrated large-cap growth. |
Small Cap Mid Cap Rotation Outperformance Russell 2500 |
WaterARIS Water Solutions provides critical water disposal and recycling for oil producers in Permian Basin, treating up to 5:1 water-to-oil ratios. Company is expanding recycling capabilities to reduce aquifer usage and has research partnerships for agricultural irrigation and mineral extraction from treated water. |
Water Treatment Recycling Permian Basin ESG Infrastructure | |
Regional BanksCadence Bank was strongest performer gaining 40.50% in quarter and 25.38% for year, outperforming regional bank group. Bank successfully realizing merger synergies, sold insurance division for $904 million, and announced 10 million share buyback program. |
Banking Mergers Capital Return Synergies Performance |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 16, 2026 | Fund Letters | Rewey Asset Management | UCTT | Ultra Clean Holdings, Inc. | Semiconductor Equipment & Materials | Semiconductor Equipment | Bull | NASDAQ | Artificial Intelligence, Capital equipment, Cyclical, growth, memory chips, semiconductor equipment, technology hardware | Login |
| Jul 16, 2026 | Fund Letters | Rewey Asset Management | OFIX | Orthofix Medical Inc. | Medical Devices | Health Care Equipment | Bull | NASDAQ | Bone Growth Stimulation, healthcare, Medical devices, Orthopedic Equipment, Regulatory, Reimbursement, turnaround, Value | Login |
| Jul 16, 2026 | Fund Letters | Rewey Asset Management | VNT | Vontier Corp. | Scientific & Technical Instruments | Industrial Machinery | Bull | New York Stock Exchange | Automotive Tools, Danaher Business System, EV charging, Free Cash Flow, Fueling Equipment, Industrial technology, margin expansion, Payment systems, Share Buybacks, spin-off, Value | Login |
| Apr 15, 2026 | Fund Letters | Rewey Asset Management | UCTT | Ultra Clean Holdings, Inc. | Semiconductor Equipment & Materials | Semiconductor Equipment | Bull | NASDAQ | AI, Capital equipment, memory chips, semiconductor equipment, technology, Upcycle | Login |
| Apr 15, 2026 | Fund Letters | Rewey Asset Management | KD | Kyndryl Holdings | Information Technology Services | IT Consulting & Other Services | Bull | New York Stock Exchange | contrarian, Free Cash Flow, IBM Spinoff, IT services, transformation, turnaround | Login |
| Apr 15, 2026 | Fund Letters | Rewey Asset Management | DNOW | DNOW Inc. | Industrial Distribution | Oil & Gas Equipment & Services | Bull | New York Stock Exchange | Cyclical Recovery, data centers, Energy Distribution, ERP Integration, Industrial distribution, Merger Synergies, Oil & Gas | Login |
| Jan 18, 2026 | Fund Letters | Chip Rewey | MEC | Mayville Engineering Company, Inc. | Industrials | Metal Fabrication | Bull | New York Stock Exchange | Acquisitions, Cyclicality, Data Center Equipment, Industrial Recovery, Metal Fabrication | Login |
| Jan 18, 2026 | Fund Letters | Chip Rewey | LAKE | Lakeland Industries, Inc. | Industrials | Safety Equipment | Bear | NASDAQ | Activist Ownership, execution risk, Fire Protection, Merger Integration, Safety Equipment | Login |
| Jan 18, 2026 | Fund Letters | Chip Rewey | DFIN | Donnelley Financial Solutions, Inc. | Information Technology | Financial Software | Bull | New York Stock Exchange | Capital markets, financial software, Free Cash Flow, SaaS Transition, Share Buybacks | Login |
| Oct 12, 2025 | Fund Letters | Chip Rewey | VREX | Varex Imaging Corp. | Health Care | Medical Equipment & Supplies | Bull | NASDAQ | healthcare, manufacturing, medical imaging, recovery, tariffs | Login |
| Oct 12, 2025 | Fund Letters | Chip Rewey | KD | Kyndryl Holdings Inc. | Information Technology | IT Services | Bull | NYSE | infrastructure, IT services, margin expansion, transformation | Login |
| Oct 12, 2025 | Fund Letters | Chip Rewey | UCTT | Ultra Clean Holdings Inc. | Information Technology | Semiconductor Equipment | Bull | NASDAQ | AI, Equipment, manufacturing, Margins, recovery, semiconductors | Login |
| Jul 17, 2025 | Fund Letters | Chip Rewey | DCO | Ducommun Incorporated | Industrials | Aerospace & Defense | Bull | New York Stock Exchange | Aerospace, backlog, Defense, Margins, Upcycle | Login |
| Jul 17, 2025 | Fund Letters | Chip Rewey | LAKE | Lakeland Industries, Inc. | Consumer Discretionary | Safety Apparel | Bull | NASDAQ | Industrial, Margins, restructuring, Safety, tariffs | Login |
| Jul 17, 2025 | Fund Letters | Chip Rewey | OFIX | Orthofix Medical Inc. | Health Care | Medical Devices | Bull | NASDAQ | Activism, Insiderbuying, Marginexpansion, Medtech, turnaround | Login |
| Jul 1, 2025 | Fund Letters | Rewey Asset Management | DCO | Ducommun | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Airbus, Boeing, Commercial Aviation, Defense, margin expansion, Military Spending, NATO, Vision 2027 | Login |
| Jul 1, 2025 | Fund Letters | Rewey Asset Management | LAKE | Lakeland Industries | Industrials | Industrial Machinery | Bull | NASDAQ | Acquisitions, Firefighter Gear, Full-Service Provider, Industrial Safety, Margin Improvement, Protective Clothing, Tariff mitigation, USMCA | Login |
| Jul 1, 2025 | Fund Letters | Rewey Asset Management | OFIX | Orthofix Medical | Health Care | Health Care Equipment | Bull | NASDAQ | 7D FLASH, AccelStim, Bone Growth Therapy, Diabetic Amputation, Engine Capital, FDA clearance, Innovation Pipeline, insider buying, margin expansion, Medical devices, Orthopedics, Seaspine Merger, Spine | Login |
| Apr 1, 2025 | Fund Letters | Rewey Asset Management | AEM | Agnico Eagle Mines Ltd. | Materials | Gold | Neutral | NYSE | Abitibi, Canada, commodity, Equity, Gold, Mining, Production | Login |
| Apr 1, 2025 | Fund Letters | Rewey Asset Management | ZYXI | Zynex Inc. | Health Care | Health Care Equipment | Bull | NASDAQ | Equity, Healthcare Equipment, innovation, Laser Technology, medical technology, Pulse Oximeter, Surgery | Login |
| Apr 1, 2025 | Fund Letters | Rewey Asset Management | DCO | Ducommun Inc. | Industrials | Aerospace & Defense | Bull | NYSE | Aerospace, Airbus, backlog, Boeing, Commercial Aviation, Defense, Equity, Military, NATO | Login |
| Jan 1, 2025 | Fund Letters | Rewey Asset Management | KD | Kyndryl Holdings Inc | Information Technology | IT Consulting & Other Services | Bull | NYSE | Free Cash Flow, IT services, M&A Target, Managed Infrastructure, margin expansion, Share Buyback, Technology Consulting | Login |
| Jan 1, 2025 | Fund Letters | Rewey Asset Management | AVNS | Avanos Medical Inc | Health Care | Health Care Equipment | Bull | NYSE | CEO transition, Digestive Health, EBITDA multiple, M&A Target, Medical devices, Pain Management, Value | Login |
| Jan 1, 2025 | Fund Letters | Rewey Asset Management | WFRD | Weatherford International plc | Energy | Oil & Gas Equipment & Services | Bull | NASDAQ | energy equipment, Free Cash Flow, global diversification, M&A Target, margin expansion, oilfield services, restructuring, technology leadership, turnaround | Login |
| Oct 1, 2024 | Fund Letters | Rewey Asset Management | LWAY | Lifeway Foods | Consumer Staples | Packaged Foods & Meats | Bull | NASDAQ | consumer staples, Dairy, margin expansion, Neglected Stock, Packaged Foods, Probiotic, Revenue Growth, takeover target, Value | Login |
| Oct 1, 2024 | Fund Letters | Rewey Asset Management | INTT | Intest | Information Technology | Electronic Equipment & Instruments | Bull | NYSE American | Cyclical, Electronic Equipment, Gallium Arsenide, Induction Heating, semiconductor equipment, Silicon Carbide, strong balance sheet, Test Equipment | Login |
| Oct 1, 2024 | Fund Letters | Rewey Asset Management | KD | Kyndryl Holdings, Inc. | Information Technology | IT Consulting & Other Services | Bull | NYSE | AI infrastructure, cloud infrastructure, Free Cash Flow, IBM Spinoff, investment grade, IT services, margin expansion, Mission-Critical, turnaround, undervalued | Login |
| Jul 1, 2024 | Fund Letters | Rewey Asset Management | WBS | Webster Financial Corp. | Financials | Regional Banks | Bull | NYSE | Capital strength, commercial real estate, Deposit Diversification, Healthcare Financial Services, HSA, Northeast Banking, regional banks, Value | Login |
| Apr 1, 2024 | Fund Letters | Rewey Asset Management | ARIS | ARIS Water Solutions | Energy | Oil & Gas Equipment & Services | Bull | NYSE | Acquisitions, Bull, dividend, energy infrastructure, environmental services, Permian Basin, Water Recycling, Water Solutions | Login |
| Apr 1, 2024 | Fund Letters | Rewey Asset Management | COLB | Columbia Banking Systems | Financials | Regional Banks | Bull | NASDAQ | Bull, commercial real estate, high dividend yield, Merger Integration, Pacific Northwest, regional bank, share repurchases, Value | Login |
| Apr 1, 2024 | Fund Letters | Rewey Asset Management | RELL | Richardson Electronics | Information Technology | Electronic Equipment & Instruments | Bull | NASDAQ | battery technology, Bull, Cyclical Recovery, Electronic Components, Green Energy, net cash, semiconductor equipment, Synthetic Diamonds, Wind Turbines | Login |
| Jan 1, 2024 | Fund Letters | Rewey Asset Management | ARIS | ARIS Water Solutions Inc. | Energy | Oil & Gas Equipment & Services | Bull | NYSE | dividend, ESG, infrastructure, Oil Services, Permian Basin, Pipeline network, Recycling, Value, water treatment | Login |
| TICKER | COMMENTARY |
|---|---|
| UCTT | UCTT, highlighted in our 3Q25 letter, was again our top performer in 2Q26, delivering a 127.81% return. The stock surged on strong quarterly results and a sharp inflection in the outlook for semi-conductor capital spending. Memory chips are now in short supply, as it has become apparent that artificial intelligence will be a massive consumer of memory. While we believe this upcycle is still in its early stages, we have trimmed our position into strength. |
| OFIX | OFIX was our weakest performer in 1Q26, as the stock declined following its May 21st announcement that CMS had lowered its reimbursement for non-invasive bone growth stimulator devices. Due to the change OFIX reduced its revenue guidance by $5 million for 2026 and withdrew its prior 3-year targets. While clearly a disappointment, this news was not a company driven negative. We still forecast revenue and earnings growth for OFIX over the next few years and believe the share decline is overdone. Incredibly, on July 1st, CMS completely reversed this code change, a net positive for OFIX. |
| VNT | We initiated a position in Vontier Corp. (NYSE: VNT), a $4.2 billion industrial technology company that provides fueling equipment, payment systems, and automotive repair tools. Although Vontier became an independent company only after its 2020 spin-off from Fortive (itself spun from Danaher in 2016), its portfolio includes well-established brands such as Gilbarco Veeder-Root and Matco. At quarter-end, VNT shares were trading at $29.00, well below their February high of $42.10. Shares fell sharply following 1Q26 results, despite earnings and revenues meeting expectations. We believe investors overreacted to a modest reduction in revenue guidance, which was driven by the announced divestiture of the Teletrac Navman business, while full-year EPS guidance remained unchanged. In our view, this weakness created an attractive opportunity to invest in a high-quality industrial company that continues to benefit from the disciplined productivity and capital allocation framework of the Danaher Business System, generates strong free cash flow, has significantly reduced its leverage, and is deploying capital aggressively through share repurchases. VNT easily surpasses our first investment pillar of Financial Strength. Since its 2020 spin-out, VNT has reduced debt by roughly $1 billion, invested roughly $1.24 billion in acquisitions and repurchased shares through its strong FCF. At 1Q26, debt to adjusted-EBITDA was 2.4x, below management's stated comfort range of 2.5x-3.0x. We believe that true leverage is even lower, because approximately $288 million of debt supports Matco's customer financing portfolio, an earning asset that could reasonably be netted against debt. Vontier produced $441 million in FCF in 2025 and is estimated to generate $469 million in FCF in 2026, which would equate to a current FCF yield of about 11%. After repurchasing $70 million in stock in 1Q26, in May VNT increased its share repurchase allocation to $1 billion, stated it would buy at least $125 million in shares in 2Q26 (3% of market value) and devote all FCF for 2026 to share repurchases at current levels. VNT's cash position should further be strengthened by its divestiture of Teletrac Navman, with $80 million cash proceeds up front and a total value of $220 million. We also think we see a strong path to growth for VNT, our second investment pillar, through both revenue acceleration and productivity driven margin improvements. Vontier is well positioned to benefit from the ongoing modernization of retail fueling stations, offering traditional fueling equipment, EV charging solutions, and integrated payment systems. As gasoline stations evolve into higher-margin convenience destinations, retailers are investing heavily in new construction and remodels. For example, 7-Eleven plans to build approximately 1,300 new stores and remodel roughly 7,000 existing locations by 2030. Vontier is uniquely positioned to participate in this investment cycle, providing not only fueling equipment but also cloud-based point-of-sale hardware and software that can integrate in-store and pump transactions. We also expect continued growth at Matco, whose mobile tool distribution business should benefit from aging vehicles, rising repair complexity, and higher used vehicle prices, all of which support increased demand for professional repair services and tools. Importantly, VNT continues to operate under its version of the renowned Danaher Business System. Management expects productivity initiatives to reduce operating expenses by approximately $15 million in 2026 and has guided to roughly 130 basis points of operating margin expansion, including approximately 80 basis points from sales leverage and productivity initiatives and 50 basis points from the divestiture of Teletrac Navman. At current prices, we see the valuation as compelling and have been adding to our position. In our view, the market is focused on the reduction in reported revenue following the Teletrac Navman divestiture while overlooking that the transaction removes approximately $110 million of annual revenue with little impact on earnings, effectively masking the strength of the underlying business. Notably, VNT left its EPS guide of $3.35-$3.50 unchanged for 2026 post the divestiture announcement on May 7th, which effectively was a raise to core EPS of $0.05. At the mid-point of guidance, VNT's 2026 PE ratio is only 8.7x. We have set our AFV price target at $45, up over 55% from current levels and a 2026 PE ratio of approximately 13.25x. Given the company's strong free cash flow generation, disciplined capital allocation, and multiple opportunities for revenue, margin, and EPS growth, we believe this valuation remains conservative. While our valuation does not incorporate any benefit from accelerated share repurchases, we believe this could provide meaningful incremental EPS accretion over time. |
| WBS | We sold four positions, which included both Webster (WBS) and Cross Country (CCRN) as they both have acquisition offers. |
| CCRN | We sold four positions, which included both Webster (WBS) and Cross Country (CCRN) as they both have acquisition offers. |
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