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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Old West Capital Management 2026 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Old West Capital Management)

Primary Source Intelligence • Q2 2026 Letter Analysis

Old West Capital Management Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Old West Capital Management. This analysis is provided for institutional research purposes only and is not investment advice.

SOURCE UNAVAILABLE

Fund Returns

QTD-0.94%

YTD+14.92%

Annualized+15.46%

Positioning StanceConstructive

Market CapSMID Cap

Digest Analysis

Quick Take

"Old West sees AI infrastructure buildout creating a new industrial revolution where power delivery is the critical constraint. The fund is positioned in power semiconductors, natural gas, coal, uranium, and optical networking."

Executive Summary

Old West All Cap Opportunity returned -0.94% net in Q2 2026 but is up 14.92% year-to-date. The manager believes the US is entering an industrialization period comparable to the 1870s, with AI infrastructure driving a repricing of entire supply chains. Power delivery has emerged as the defining constraint on AI, with hyperscalers spending $700 billion this year alone. The fund is positioned in power semiconductors, natural gas producers, coal, uranium, and optical networking infrastructure. Top contributors included Navitas Semiconductor, whose GaN chips were featured by Nvidia, Bruker Biosciences on new instrument platforms, and Nokia as the market revalued it as critical AI infrastructure. Detractors included Tidewater, Core Natural Resources, and Antero Resources, which declined as oil and gas prices fell after the U.S.-Iran agreement removed war premiums. The manager sees tremendous value in metals, mining, and physical infrastructure, believing natural gas reserves represent crude electricity with immense spread potential. They view coal's death as greatly exaggerated given rising electricity demand from data centers. The portfolio includes companies where investors are overly focused on past end markets rather than future AI-driven demand.

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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

72%

CautiousHigh

High Conviction (72%)

Market Conviction

The letter names six specific positions with detailed multi-paragraph commentary and explicit sizing language ('top contributors,' 'top detractors'). The manager articulates clear, falsifiable theses for each holding tied to AI infrastructure demand. However, the fund appears diversified across multiple sectors (semiconductors, energy, materials, telecom) rather than concentrated in 5-10 names, and some hedging language appears ('we think,' 'in our view'). The combination of named positions with detailed rationale but diversified structure places this in the moderate-to-high conviction range.

65%

BearishBullish

Bullish (65%)

Growth Outlook

The manager frames the current period as comparable to the 1870s industrial revolution and describes AI infrastructure buildout as a defining opportunity with trillions in spending ahead. Language is constructive with phrases like 'fascinating moment in history' and 'tremendous value,' though tempered by acknowledgment of volatility and supply chain stress. The outlook is meaningfully positive but not unambiguously bullish.

55%

DefensiveAggressive

Balanced (55%)

Risk Appetite

The portfolio maintained concentrated positions through Q2 volatility and the manager explicitly states they 'continue to find value' and 'continue to see tremendous value' in materials and mining. However, the letter describes giving back gains and experiencing detractors, suggesting selective rather than maximum risk-on positioning. Net long with conviction but not leveraged or aggressive.

5%

De-riskingDeploying

De-risking (5%)

Capital Deployment

No cash level changes are disclosed in the letter. The manager describes maintaining positions through volatility and 'continue to find value' language, but there is no evidence of net new capital deployment or cash reduction. The letter describes rotation (giving back gains on some positions, others contributing) rather than net deployment. This represents capital rotation with stable net exposure, scoring near neutral.

50%

CautiousExpansionary

Neutral (50%)

Forward Guidance

The manager states they are 'well positioned for the next few years' and 'pleased with our performance,' indicating confidence in current holdings. However, there is no explicit language about actively deploying new capital, adding to positions, or scaling exposure. The stance is hold and monitor rather than active deployment, placing this at the neutral-to-selective boundary.

60%

BearishBullish

Balanced (60%)

Language Signal

Bullish language dominates with terms like 'tremendous value,' 'attractive expansion opportunities,' 'well positioned,' 'strategically valuable,' and 'fascinating moment.' Risk language appears but is contextualized as temporary (volatility, roundtripping) or solvable (infrastructure delays). The balance tilts meaningfully positive with roughly 3:1 bullish-to-cautious phrasing, though not overwhelmingly so.

52%

Low RiskElevated

Moderate Risk (52%)

Perceived Risk

The manager identifies specific risks including 'extreme volatility and unpredictability,' supply chain stress, grid interconnection delays, and central bank challenges addressing inflation. However, these risks are discussed as manageable or creating opportunity rather than systemic threats. The language is cautious but not alarmed, with risks mentioned in 3-4 sentences and immediately contextualized. This represents moderate risk acknowledgment without central concern.

75%

ScarceAbundant

Abundant (75%)

Opportunity Density

The manager sees opportunities across multiple sectors: power semiconductors, natural gas, coal, uranium, optical networking, scientific instruments, metals, mining, and physical infrastructure. Language includes 'tremendous value,' 'many interesting opportunities,' and 'well positioned.' The letter describes finding value in companies 'where investors are overly focused on the past,' suggesting a broad opportunity set requiring selectivity but not scarcity. This indicates a rich but selective environment.

68%

Short-TermLong-Term

Multi-Year (68%)

Time Horizon

The manager explicitly states they are 'well positioned for the next few years' and describes AI infrastructure spending as occurring 'over the next few years' and 'trillions more over coming years.' The thesis centers on multi-year industrial transformation comparable to the 1870s. However, the letter also discusses quarterly performance, near-term catalysts (Nvidia showcase, analyst upgrades), and price movements, indicating attention to 1-3 year milestones rather than permanent capital horizon. This represents a multi-year thesis with some catalyst dependency.