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 |
|---|---|---|---|---|---|---|
Tactile Fund returned 2.9% in Q2 2026, bringing year-to-date returns to 4.0%. The quarter saw partial unwinding of 2025 trends that included rising skepticism toward US equities and the dollar's reserve status, with the Iran conflict and high energy costs dampening appetite for vulnerable geographies like Western Europe. The fund added Grupo México, Mexico's largest public company, as a significant new position. Grupo México controls the world's largest and lowest-cost copper reserves through Southern Copper and ASARCO, while owning Mexico's most important rail networks. The company trades at more than 60% discount to net asset value and is evaluating rail acquisitions in Brazil and Argentina. Since inception, over 12% of the portfolio has been acquired or conducted major asset sales, with six holdings seeing catalyzing transactions in 18 months. This validates the desirability of companies owning extraordinary physical assets, though it limits long-term ownership opportunities. The portfolio remains positioned as a hedge against dollar weakness and technological disruption through ownership of rare, high-quality physical assets.
Tactile Fund invests in companies that own extraordinary, scarce physical assets trading at significant discounts to intrinsic value, with these assets serving as hedges against dollar weakness and technological disruption while attracting acquisition interest that validates their quality.
The manager expects Tactile Fund's collection of businesses owning extraordinary physical assets to continue proving useful as a hedge against long-term dollar weakness and technological disruption. Grupo México is positioned to grow its value by building on its dominant position in rare, high quality physical assets, particularly through potential rail acquisitions in Brazil and Argentina. The manager acknowledges mixed feelings about the strong acquisition interest in portfolio holdings, as it boosts short-term returns but deprives the fund of long-term ownership opportunities, though sales at prices that fully reflect quality and scarcity are acceptable outcomes.
As of Aug 29, 2026
David Waters, CFA, is Alluvial Capital Management's managing member and has focused on delivering exceptional results for investors since launching Alluvial in 2014. Waters brings professional experience from Wilmington Trust and BNY Mellon Wealth Management, providing a strong foundation in wealth management and investment advisory services. Under his leadership, Alluvial Capital Management has grown from approximately $3 million in assets at founding to over $105 million in total assets under management as of April 2025. Waters holds the Chartered Financial Analyst designation and has been registered with the SEC since January 17, 2014, with no disciplinary history. He is supported by Tom Kapfer, who serves as associate handling research, due diligence, and operational responsibilities, bringing eight years of experience from a local investment advisory firm focused on business intelligence, operations, and compliance. The management team demonstrates a commitment to long-term value creation through patient capital deployment and disciplined investment selection.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
The fund holds a concentrated portfolio with 20 named positions representing 59.3% of assets, indicating moderate concentration. The manager provides detailed, specific thesis work on Grupo México, including explicit valuation analysis (60%+ discount to NAV), asset-level detail on copper reserves and rail networks, and a clear catalyst (potential rail acquisitions in Brazil and Argentina). Position sizing is disclosed for top holdings (ranging from 2.1% to 5.4%). The letter demonstrates strong conviction in the physical assets thesis, with specific examples and falsifiable claims. However, the portfolio is not extremely concentrated (not sub-10 positions), and some hedging language exists around M&A outcomes. The conviction is high but not extreme, consistent with a specialist value fund with 20+ holdings and clear theses per name.
Growth Outlook
Market outlook remains above average conviction: Tactile Fund targets companies with extraordinary physical assets globally, rising 1% in Q1 despite Iran war pressures on tourism holdings. Portfolio includes Gruma dominating glob...
Risk Appetite
Risk appetite posture is moderate conviction: Tactile Fund targets companies with extraordinary physical assets globally, rising 1% in Q1 despite Iran war pressures on tourism holdings. Portfolio includes Gruma dominating glob...
Capital Deployment
The fund added one new position of significance (Grupo México) in Q2, indicating selective deployment. However, no cash level data is provided to assess net deployment activity. The letter mentions that over 12% of the portfolio has been acquired or sold assets since inception, suggesting some capital has been returned and is available for redeployment. The addition of Grupo México and the manager's statement about preferring to continue owning companies long-term suggests a mild deployment bias, but without cash percentage changes, the score reflects modest, selective activity rather than aggressive deployment.
Forward Guidance
Forward guidance signal: Tactile Fund targets companies with extraordinary physical assets globally, rising 1% in Q1 despite Iran war pressures on tourism holdings. Portfolio includes Gruma dominating glob...
Language Signal
The letter contains substantial bullish language around Grupo México: 'extraordinary physical assets,' 'world's largest and lowest-cost copper reserves,' 'high quality, long-lived reserves,' 'enviable position,' and '300x return over 30 years' for Southern Copper. Copper prices are described as at 'record highs' with a 'constrained supply outlook.' Bearish language is limited to acknowledgment of the Iran conflict, energy costs, and mining being 'difficult' and 'deeply cyclical.' The net balance tilts moderately bullish, focused on opportunity in specific holdings rather than broad market enthusiasm.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. Tactile Fund targets companies with extraordinary physical assets globally, rising 1% in Q1 despite Iran war pressures on tourism holdings. Portfolio includes Gruma dominating glob...
Opportunity Density
The manager identifies Grupo México as a significant new opportunity trading at a 60%+ discount to NAV with multiple attractive attributes (copper reserves, rail networks, growth potential). The strong M&A activity (six holdings seeing transactions in 18 months) suggests the market is recognizing value in the fund's holdings, implying opportunities exist for patient capital. The manager describes the portfolio companies as owning 'extraordinary physical assets' and 'enviable positions,' suggesting a constructive view of the opportunity set within the fund's niche. However, the letter does not describe a broad or abundant opportunity set across markets, focusing instead on selective, high-quality ideas.
Time Horizon
The manager explicitly states a preference to 'continue to own these high-quality companies for the long term' and expresses mixed feelings about M&A activity because it 'deprives us of the opportunity to own these high-quality companies for the long term.' The letter references Southern Copper's 30-year track record and describes Grupo México's assets as positioned to grow value over time through rail acquisitions. The focus on physical assets as hedges against long-term dollar weakness and technological disruption implies a multi-year horizon. However, the letter also discusses near-term M&A catalysts and quarterly activity, preventing a score above 0.75. The time horizon is clearly multi-year but not explicitly permanent or decade-plus.
Top Conviction Themes
Key Catalysts
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