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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Cedar Creek Partners 2026 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Cedar Creek Partners)

Primary Source Intelligence • Q3 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+6.5%

YTD+19.9%

Annualized+15.2%

Positioning StanceCONSTRUCTIVE

Market CapMicroCap

GeographyUS

Digest Analysis

Quick Take

"Constructive on deeply discounted microcaps, expert market equities, and special situations, deploying capital into cash-rich net-nets and defense suppliers while pursuing activist governance across under-researched off-the-run companies."

Executive Summary

Cedar Creek Partners posted a net return of 6.5% for the third quarter of 2026 and 19.9% net of fees and expenses year-to-date, substantially outperforming small-cap benchmarks such as the Russell 2000 and Russell Microcap, which each declined 7.2% during the quarter. Cash levels finished the quarter modestly higher at 10%, up from 9% at the start of the period, though the manager emphasizes that attractive deployment opportunities remain plentiful. The underlying portfolio trades at an aggregate valuation of 7.7 times estimated forward earnings and 4.5 times forward earnings net of corporate cash balances. The investment strategy remains centered on microcap and over-the-counter equities, with a pronounced allocation of 27% to expert market securities governed by SEC Rule 15c2-11. The manager identifies substantial mispricings within these regulatory-restricted, non-reporting, and delinquent-filing issues where retail purchasing is curtailed. The fund avoids broad macro speculation or short-term trading, targeting companies with stable operating profiles, conservative balance sheets, and compelling one- to five-year prospective return horizons. Portfolio performance was driven predominantly by the fund's sole control position, Solitron Devices, which appreciated 29% gross amid expanding defense backlogs, retention of strategic advisers, and major multi-year Pentagon missile contract awards. The manager maintained major expert market stakes in Exco Resources (10% allocation) and Harbor Diversified (9% allocation), the latter holding cash and proceeds from its airline asset sale substantially exceeding its market price. The fund also established a new position in junior gold producer Monument Mining at an enterprise value below one times earnings net of cash.

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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

82%

CautiousHigh

High Conviction (82%)

Cedar Creek maintains a highly concentrated portfolio where the top five expert market holdings and a single control position account for the vast majority of invested capital. The manager backs high-conviction positions through board seats, executive management oversight, and heavy co-investment, such as an 11% fund ownership in Solitron Devices alongside personal insider holdings.

Growth Outlook

55%

BearishBullish

Neutral (55%)

The manager remains largely agnostic regarding broad market index trajectories, emphasizing bottom-up microcap mispricings over macroeconomic forecasting. A constructive view on portfolio holdings is balanced against indifference toward broader large-cap equity valuations.

Risk Appetite

72%

DefensiveAggressive

Aggressive (72%)

Positioning is tilted aggressively toward illiquid, non-reporting expert market equities, distressed microcaps, and junior commodity producers. Cash levels of 10% represent a modest buffer while the manager actively pursues new capital deployments.

Capital Deployment

50%

De-riskingDeploying

Net Neutral (50%)

Cash balances remained stable, edging modestly upward from 9% to 10% over the quarter, representing net-neutral deployment behavior within the ±2% threshold. Capital recycling continues as distributions from sales are redeployed into primary ideas.

Forward Guidance

80%

CautiousExpansionary

Expansionary (80%)

Management explicitly states that it has more attractive ideas than capital and is actively seeking new partner capital to scale positions. The manager is methodically adding to existing holdings like Harbor Diversified and seeking entry points across deeply discounted securities.

Language Signal

75%

BearishBullish

Bullish (75%)

Letter commentary is characterized by constructive and value-oriented language, describing holdings as 'incredibly attractive,' 'absurdly low,' and 'trading at ridiculous valuations.' Skepticism is limited to corporate capital allocation governance at specific mining holdings.

Perceived Risk

30%

Low RiskElevated

Low Risk (30%)

Macro-level systemic threats receive negligible attention, with discussion focused almost entirely on company-specific fundamentals and regulatory rules. Downside risks are perceived as well-cushioned by net corporate cash reserves and low entry multiples.

Opportunity Density

85%

ScarceAbundant

Abundant (85%)

The manager explicitly notes having more attractive investment ideas than available capital, pointing to widespread anomalies in expert market stocks and unloved microcap net-nets. Multiple holdings trade at cash value or below four times normalized earnings.

Time Horizon

72%

Short-TermLong-Term

Decade+ (72%)

Portfolios are managed to achieve compelling returns over an explicit one- to five-year expected return horizon rather than chasing short-term price movements. The manager expresses explicit patience with complex corporate turnarounds and multi-year defense production programs.