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 |
|---|---|---|---|---|---|---|
Stewart Asset Management's Flagship portfolio advanced 15.97% net in Q2 2026, slightly outpacing the S&P 500's 15.20% gain, though trailing year-to-date at 5.37% versus 10.21%. The quarter saw sharp price gains despite Middle East conflict uncertainty, driven primarily by superb earnings growth. Analysts now project S&P 500 earnings will grow over 23% in 2026, approaching $1 trillion total. The manager views AI as a powerful industrial trend comparable to the PC adoption of the late 1980s, with portfolio holdings concentrated in three hyperscalers (Alphabet, Amazon, Microsoft) and two leading chip designers (Nvidia, Broadcom). During the quarter, the manager initiated a small position in Lumentum to capture the optical networking upgrade cycle driven by AI data center expansion. While acknowledging inevitable corrections and extreme valuation concerns from some strategists, the manager emphasizes that investing in exceptional businesses rather than adroit trading has doubled client capital roughly every half decade. The outlook remains constructive on continued earnings growth driving further gains in the second half of 2026.
Investing in dominant businesses with impregnable balance sheets and rapidly growing earnings allows capital to compound through market cycles, with AI infrastructure representing a generational industrial trend comparable to the internet buildout and PC adoption.
The manager believes that if exceptional earnings growth continues as analysts project (over 23% for the S&P 500 in 2026), further price gains may result in the second half of the year. While corrections are inevitable after strong gains, the manager emphasizes that investing in exceptional businesses has allowed them to double clients' capital roughly every half decade and they will do their best to maintain this result. The tone is constructive with acknowledgment of volatility but confidence in the long-term compounding value of quality businesses.
As of Aug 18, 2026
Stewart Asset Management operates as an investment advisory management team within Ingalls & Snyder LLC, led by Chief Investment Officer Thomas M. Valenzuela and founder Bill Stewart. The team has maintained consistent investment philosophy and personnel through three organizational phases since 1974, starting as W.P. Stewart & Co., then operating as Stewart Asset Management LLC from 2014-2024, before integrating with Ingalls & Snyder in February 2024. The firm focuses on concentrated U.S. equity growth investing with a long-term approach, managing portfolios of approximately 15-20 high-quality companies. The team has received multiple industry recognitions including Forbes' 2024 America's Top RIA Firms and Financial Advisor Magazine's Top RIAs recognition.
Stewart Asset Management's core philosophy centers on the principle that share prices follow earnings growth. The investment approach is built on four fundamental tenets: the power of compounding with high, steady, recurring growth; deep business understanding through thorough knowledge of portfolio companies; sound valuation methodologies for investment decisions; and a long-term investment approach. The strategy focuses on investing in approximately 15-20 high-quality companies with consistent earnings growth, strong management, and robust financials, targeting large, well-managed companies capable of growing earnings by 12-15% annually over at least five years. The guiding goal is to double clients' money every five years through this concentrated U.S. equity growth approach.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The portfolio demonstrates high conviction through concentrated holdings in six named positions with explicit sizing language: three hyperscalers and two chip designers held for multiple years (Nvidia for eight years, Broadcom for three years, Alphabet and Amazon for several years). The manager provides clear thesis statements for each holding and initiated a new position with specific catalysts (Lumentum with customer agreements through 2027). However, the new position is described as 'small' and Microsoft is noted as 'smaller, more recently added,' suggesting some diversification. The letter lacks explicit position sizing percentages and the manager acknowledges risks associated with Lumentum. This combination of concentrated, long-held positions with clear theses but some hedging on newer positions yields a score in the high-moderate to low-high conviction range.
Growth Outlook
Market outlook remains above average conviction: Stewart Asset Management underperformed the S&P 500 YTD in 2025 due to a major drag from UnitedHealth, which has now been completely liquidated. The manager remains highly confiden...
Risk Appetite
Risk appetite posture is above average conviction: Stewart Asset Management underperformed the S&P 500 YTD in 2025 due to a major drag from UnitedHealth, which has now been completely liquidated. The manager remains highly confiden...
Capital Deployment
The manager initiated one new position (Lumentum) during the quarter, described as 'small.' There is no mention of cash level changes, scaling existing positions, or significant capital deployment activity. The letter emphasizes maintaining existing long-held positions rather than aggressive deployment. The single small new position indicates selective adding activity but falls short of moderate deployment. This warrants a mildly positive score reflecting limited net deployment activity without evidence of meaningful cash reduction or position scaling.
Forward Guidance
Forward guidance signal: Stewart Asset Management underperformed the S&P 500 YTD in 2025 due to a major drag from UnitedHealth, which has now been completely liquidated. The manager remains highly confiden...
Language Signal
Bullish language dominates: 'superb earnings growth,' 'exceptional,' 'powerful industrial trends,' 'contributed nicely,' 'further price gains may result,' 'it pays to be invested,' and 'dominant businesses.' Bearish language is present but contextualized: 'uncertainties,' 'volatile,' 'corrections are inevitable,' and acknowledgment of extreme valuation concerns. The manager explicitly counters bearish commentary by emphasizing the lesson that 'share prices respond to growth.' The net balance tilts meaningfully bullish while acknowledging risks, warranting a score above 0.50 but below strongly bullish territory.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Stewart Asset Management underperformed the S&P 500 YTD in 2025 due to a major drag from UnitedHealth, which has now been completely liquidated. The manager remains highly confiden...
Opportunity Density
The manager views the opportunity set as attractive, initiating a new position in Lumentum and maintaining concentrated exposure to AI infrastructure. The statement that 'it pays to be invested' and the emphasis on 'exceptional earnings growth' driving 'further price gains' in the second half suggest the manager sees good opportunities. The AI theme is described as a 'powerful industrial trend' with multiple ways to participate (hyperscalers, chip designers, optical networking). However, only one new position was added and it was sized small, suggesting selectivity rather than an abundance of compelling ideas. This yields a moderately positive score reflecting selective opportunities in defined areas rather than a rich, broad opportunity set.
Time Horizon
The manager demonstrates a multi-year time horizon through holding periods: Nvidia for almost eight years, Broadcom for about three years, Alphabet and Amazon for several years. The letter emphasizes that 'stock prices will fluctuate but not the enterprise's compounding value' and highlights 'investing in exceptional businesses not adroit trading in stocks' as the approach that has 'doubled our clients' capital, after fees, roughly every half decade.' The Lumentum investment is tied to customer agreements extending through 2027, indicating a 1-2 year catalyst window. The combination of very long holding periods on core positions with some catalyst dependency on newer positions yields a score in the 0.75-0.80 range, reflecting a multi-year thesis with willingness to hold through volatility but not quite permanent capital territory.
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