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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Rewey Asset Management 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Rewey Asset Management)

Primary Source Intelligence • Q3 2026 Letter Analysis

Rewey Asset Management Quarterly Analysis

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

Fund Returns

QTD-7.16%

YTD+21.69%

Positioning StanceCONSTRUCTIVE

Market CapSMID Cap

GeographyUS

Digest Analysis

Quick Take

"Constructive on small- and mid-cap value compounders levered to industrial manufacturing, energy infrastructure, and data center buildouts, capitalizing on yield-driven market volatility to re-establish high-upside positions like $MEC."

Executive Summary

In the third quarter of 2026, the RAM Smid composite declined 7.16% net of fees, compared with a 4.36% decline for the Russell 2500 Value Total Return Index. Year-to-date, the strategy returned 21.69% net of fees, maintaining an advantage over the benchmark's 18.75% gain. The portfolio closed the period holding thirty-four positions, with the top ten holdings accounting for 39.4% of total assets and cash reserves at 4.63%. Weighted average market capitalization stood at $4.87 billion, reflecting a pronounced small-cap tilt relative to the benchmark. The broader market backdrop was dominated by a surge in the 10-year Treasury yield to 5.25%, driven by an energy price shock from escalating conflict with Iran alongside persistent Federal deficit funding. Simultaneously, capital expenditures by major cloud hyperscalers surged toward $750 billion annually, prompting record corporate bond issuance that competed directly with government debt. These inflationary and interest rate pressures weighed heavily on equal-weighted equities, despite artificial index buoyancy driven by a narrow cohort of mega-cap technology leaders. Portfolio activity was active, with five new positions established and two completely eliminated. The manager re-established a significant holding in Mayville Engineering Company ($MEC) following balance sheet de-leveraging and improving cyclical demand across trucking and data center infrastructure. Wesdome Gold Mines ($WDOFF) served as the primary performance contributor, surging 44.4% following reserve expansion announcements, while Ultra Clean Holdings ($UCTT) retraced 42.7% amid semiconductor sector weakness, offering an attractive opportunity to add at lower valuations.

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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

72%

CautiousHigh

High Conviction (72%)

Portfolio concentration is solid with thirty-four holdings and nearly 40% allocated across the top ten, supported by detailed fundamental research and explicit EV/EBITDA valuation targets on names like MEC. The manager exhibits strong willingness to buy high-conviction holdings through severe drawdowns, although position sizing across individual holdings is not fully disclosed.

Growth Outlook

58%

BearishBullish

Neutral (58%)

The outlook remains constructive on small- and mid-cap equities benefiting from broadening market participation and eventual geopolitical de-escalation. However, enthusiasm is tempered by near-term pressure from elevated 10-year Treasury yields and sticky energy-driven inflation.

Risk Appetite

70%

DefensiveAggressive

Balanced (70%)

Capital is decisively tilted toward risk-on equity positioning, carrying a modest 4.63% cash balance while establishing five new long positions during the quarter. The manager actively leans into sharp individual stock pullbacks, adding to positions like UCTT and MEC following steep price declines.

Capital Deployment

73%

De-riskingDeploying

Deploying (73%)

Capital deployment was net positive as the fund added five new positions against two liquidations, reinvesting proceeds from earlier trims back into high-beta names at lower valuations. Cash remains contained at a conservative 4.63%.

Forward Guidance

74%

CautiousExpansionary

Expansionary (74%)

Clear deployment signals are communicated through the active addition of newly identified long investments and the publication of an upside price target on MEC. Guidance indicates continued opportunism in mining, industrial fabrication, and data center hardware suppliers.

Language Signal

64%

BearishBullish

Balanced (64%)

Directional language balances positive terminology such as 'compelling valuation opportunity,' 're-acceleration,' and 'fertile hunting ground' against serious macro warnings regarding the Iran conflict, interest rate shocks, and federal deficit expansion.

Perceived Risk

72%

Low RiskElevated

Elevated Risk (72%)

Identifiable macro risks receive extensive discussion, led by the potential for Persian Gulf military conflict to sustain oil above $90-$100 and propagate core inflation. In addition, the competitive borrowing pressure between the U.S. Treasury and corporate hyperscalers is viewed as a major structural headwind to yields.

Opportunity Density

78%

ScarceAbundant

Abundant (78%)

Management sees an abundant selection of investable ideas, explicitly asserting that investors who cannot find compelling equity opportunities are being lazy. The letter highlights a broad investable universe of over 6,000 domestic companies spanning multiple active thematic verticals.

Time Horizon

72%

Short-TermLong-Term

Decade+ (72%)

The investment strategy adheres strictly to a multi-year framework, emphasizing 2-to-3-year value creation horizons for underlying companies to execute operational plans. Portfolio theses intentionally discount quarter-to-quarter price volatility in favor of long-term business cycles.