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 |
|---|---|---|---|---|---|---|
As of Nov 3, 2026
The VELA International Fund Class I gained 4.44% net of fees for the third quarter of 2026, outpacing the MSCI World Ex-US Index return of 0.89% by 355 basis points. Over the five-year trailing period, the fund delivered an annualized net return of 9.56% compared to 9.66% for the benchmark, with equity-only holdings outpacing the index. Following a comprehensive review of its track record that revealed cash had historically created a performance drag while bottom-up stock selection generated positive alpha, the management team reduced uninvested liquidity, concluding the quarter with an active cash weight of 4.8%. Macroeconomic conditions remain unsettled across international markets, shaped by the simmering Middle East conflict, persistent headline inflation, and rising sovereign interest rate curves globally. Management views equity markets as underestimating the lingering pressure of rising discount rates. In response, the portfolio maintains a counter-cyclical overweight stance in consumer staples alongside cash-generative franchises with defensive moats and strong balance sheets, while actively avoiding momentum-chasing behavior surrounding artificial intelligence buildouts. Portfolio turnover during the quarter included initiating new positions in Japan EyeWear Holdings and South Korea's NICE Information Service, balanced by complete exits in Toray Industries and Rexel after both reached intrinsic value estimates. Sector contributors were led by Health Care holdings Tecan Group and Ansell, alongside specialized Financials positions in Edenred and Sabre Insurance. Communications lagged due to temporary ad-spending softness and AI-disintermediation sentiment surrounding Criteo, which management continues to view as deeply undervalued.
Achieve superior long-term compounding by investing in diverse, high-return-on-capital international businesses with resilient balance sheets and attractive valuations that can weather cyclical and macroeconomic volatility.
Macroeconomic conditions are anticipated to stay turbulent with rising global interest rates and unresolved geopolitical tensions, favoring bottom-up portfolio construction focused on defensive, cash-generative businesses with strong balance sheets.
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