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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Cedar Creek Partners 2026 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Cedar Creek Partners)

Primary Source Intelligence • Q2 2026 Letter Analysis

Cedar Creek Partners Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Cedar Creek Partners. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+5.4%

YTD+12.6%

Annualized+15.2%

Positioning StanceNEUTRAL

Market CapMicroCap

GeographyUS

Digest Analysis

Quick Take

"Maintaining its 20-year track record of 15% annualized returns. The microcap-focused fund increased expert market exposure to 32.5%, led by natural gas producer Exco Resources and asset-rich Harbor Diversified."

Executive Summary

Cedar Creek Partners returned 5.4% net in Q2 2026, bringing first-half returns to 12.6% versus 12.8% for the NASDAQ. The fund's 20-year track record shows 15.0% annualized returns net of fees. The portfolio trades at 7.3 times forward earnings and 4.2 times earnings net of cash, with weighted price-to-book of 1.0. The manager increased expert market exposure to 32.5% of assets, focusing on non-reporting companies restricted from retail trading. Four positions—Exco Resources (natural gas producer), Harbor Diversified (asset sale proceeds), PHI Group (helicopter services), and PD-Rx Pharmaceuticals—comprise 80% of expert market exposure. Community bank holdings reached 14% of assets, with top positions in Steele Bancorp, Skyline Bankshares, and River Financial Corp trading at 6-7 times earnings. Solitron Devices, where the manager serves as CEO, retained an investment banker to evaluate strategic alternatives. Cash declined from 13% to 9% as the manager deployed capital into existing positions. The fund continues to find attractive opportunities in illiquid microcap securities.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

78%

CautiousHigh

High Conviction (78%)

The fund demonstrates high conviction through concentrated positioning in named holdings with explicit sizing: Exco Resources at 10%, Harbor Diversified at 8%, PHI Group at 5%, and PD-Rx at 3%. The manager provides detailed valuation analysis with specific price targets and catalysts for each major position. The willingness to hold illiquid expert market securities (32.5% of assets) and the manager's CEO role at Solitron (11% fund ownership) reflect strong conviction. However, the portfolio includes 15+ expert market names plus community banks, preventing a score above 0.85. The combination of concentration in top positions with detailed thesis work and personal capital commitment justifies a high-conviction score.

Growth Outlook

60%

BearishBullish

Neutral (60%)

The manager describes fund holdings as trading at incredibly attractive prices (7.3x forward earnings, 4.2x earnings net of cash) and states the fund continues to find attractive uses for cash. The language is constructive about the opportunity set in microcap and expert market securities, though there is no broader market commentary. The focus on valuation attractiveness and continued deployment signals a mildly positive outlook on the specific segments where the fund operates.

Risk Appetite

45%

DefensiveAggressive

Balanced (45%)

Cash declined from 13% to 9% during the quarter, indicating moderate deployment activity. The manager increased expert market exposure to 32.5% and built community bank exposure to 14%, both representing concentrated bets in illiquid, restricted securities. However, 9% cash remains modestly above the manager's preferred level, and the deployment is described as patient rather than aggressive. This reflects a selectively risk-on posture but not maximum exposure.

Capital Deployment

35%

De-riskingDeploying

Net Neutral (35%)

Cash declined from 13% to 9%, a reduction of 4 percentage points, indicating moderate deployment activity. The manager describes patiently increasing positions in a number of companies and states there are attractive uses for cash. However, cash at 9% remains modestly higher than preferred levels, and the deployment is characterized as patient rather than aggressive. This represents selective deployment activity but not urgent capital commitment, warranting a score in the moderate deployment range.

Forward Guidance

40%

CautiousExpansionary

Neutral (40%)

The manager states the fund expects to continue allocating a meaningful portion to expert market stocks and has been patiently increasing positions. The language indicates selective ongoing deployment rather than aggressive capital commitment. The phrase 'patiently increasing' and cash remaining above preferred levels suggests a measured approach to adding exposure, not urgency. This reflects a mild deployment bias with continued selectivity.

Language Signal

65%

BearishBullish

Bullish (65%)

The letter is dominated by opportunity language: incredibly attractive prices, attractive uses for cash, attractive acquisition candidates, attractive pricing opportunities, and fair value estimates that keep rising. The manager describes holdings trading at significant discounts to intrinsic value with specific upside targets (Exco at $22 vs $55-80 fair value, Harbor at $2.08 vs $3.50 cash). There is minimal risk language beyond brief mentions of cyber attacks and lawsuits. The net balance is meaningfully bullish in directional language.

Perceived Risk

15%

Low RiskElevated

Low Risk (15%)

The letter contains minimal risk discussion. Brief mentions include a cyber attack at River Financial with no material impact to date and some lawsuits filed, plus a passing reference to uncertainty in one footnote. There are no systemic risk warnings, macro concerns, or detailed downside scenarios. The focus is overwhelmingly on opportunity and valuation attractiveness. The only risk language appears in standard contexts and is immediately dismissed or minimized. This warrants a very low perceived risk score.

Opportunity Density

75%

ScarceAbundant

Abundant (75%)

The manager explicitly states the fund has more attractive ideas than capital and continues to find attractive uses for cash. The letter details multiple new positions and expanding holdings across expert market stocks and community banks. The manager describes building a basket of attractively priced community banks and patiently increasing positions in numerous companies. The language indicates a rich opportunity set in the microcap and expert market space, though selectivity is required. This reflects a broad opportunity environment within the fund's niche.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The manager states the fund tries to build a portfolio with an attractive one to five year expected return and explicitly does not try to predict day-to-day movements. The focus on illiquid expert market securities and community banks as acquisition candidates implies a multi-year thesis. Specific catalysts mentioned (Harbor becoming SEC current, PHI tender, Solitron strategic alternatives, Queen City ranch sale) have 6-24 month timeframes. The 20-year track record and patient deployment language suggest comfort with longer holding periods, but the explicit one to five year framework and catalyst dependency prevent a score above 0.75.