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 |
|---|---|---|---|---|---|---|
The Compounding Tortoise returned 17.35% in Q2 2026 despite elevated volatility in mega-caps. Portfolio companies with 30% ROICs delivered 15.1% Q1 earnings growth, compounding at 14% annually over two and a half years. A 27% valuation headwind since mid-2025 has created opportunity as the derating completes. Forward returns are positioned to be driven by continued earnings compounding and dividends, with accelerating growth momentum emerging across holdings.
The manager invests in high-quality companies with ROICs around 30%, low leverage, and scalable platforms that can sustain 12% earnings growth while the broader market grows at 7%. Despite a 27% valuation headwind since late July 2025, portfolio companies have compounded earnings at 14% per annum over the past two and a half years. With the derating already occurred and accelerating earnings growth emerging, forward return prospects are positioned to be driven by continued earnings compounding and dividends.
The manager remains optimistic about steady progress with 14-15% earnings growth from portfolio companies. Forward return prospects have rarely looked better, driven by accelerated compounding in underlying earnings and cash flow. The manager expects forward returns to be driven solely by growth in NOPAT per share and dividends, with the derating already behind them. They will monitor whether Q1 earnings season acceleration continues, having observed growing momentum over the past six months.
As of Jul 8, 2026
The newsletter was founded by an anonymous author who was formerly a senior finance professional with a background in management consulting and M&A advisory for entrepreneurial families. In April 2024, the founder left their role as a senior finance professional at a small-to-medium-sized company that they had acquired with their former business partner to focus full-time on the newsletter. The founder maintains anonymity while providing comprehensive investment research and education to subscribers through detailed analysis and community building.
The Compounding Tortoise centers its philosophy around the metaphor of the slow and steady tortoise winning the race, reflecting an investment philosophy that values sustained, incremental growth and the power of compounding returns over speculative and high-risk strategies. The approach emphasizes that boring compounding wins the game, where slow, steady, and persistent growth leads to substantial long-term investment results. The methodology focuses on quality-investing and finding lovely tortoise compounders by analyzing the capital allocation strategy of already proven high-quality business models.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
Growth Outlook
Risk Appetite
Capital Deployment
Forward Guidance
Language Signal
Perceived Risk
Opportunity Density
Time Horizon
Top Conviction Themes
Key Catalysts
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