Browse the world's most comprehensive database of hedge fund investor letters, sorted by recent quarter. Access primary source research from leading institutional managers.
Browse the world's most comprehensive archive of hedge fund manager letters. Access primary source research from leading institutional managers, sorted by reporting period.
Oakmark International Small Cap underperformed in Q3 but used market volatility to add quality positions at attractive valuations. The fund added engineering services provider Alten and auto components spinoff Aumovio while increasing positions in cyclically depressed names. Managers expect recovery in engineering services and other cyclical sectors to drive future returns.
Full Quick Take
Oakmark International Small Cap underperformed in Q3 but used market volatility to add quality positions at attractive valuations. The fund added engineering services provider Alten and auto components spinoff Aumovio while increasing positions in cyclically depressed names. Managers expect recovery in engineering services and other cyclical sectors to drive future returns.
RDCP delivered 20% enterprise value growth through strategic acquisitions in UK industrials while disposing underperforming assets. The diversified holding company targets £50m EBITDA by 2025 through continued buy-and-build strategy across construction, electrical distribution, and engineering services. Permanent capital structure and focus on retiring business owners provides competitive acquisition advantage in fragmented UK middle market.
Full Quick Take
RDCP delivered 20% enterprise value growth through strategic acquisitions in UK industrials while disposing underperforming assets. The diversified holding company targets £50m EBITDA by 2025 through continued buy-and-build strategy across construction, electrical distribution, and engineering services. Permanent capital structure and focus on retiring business owners provides competitive acquisition advantage in fragmented UK middle market.
Conestoga's Micro Cap strategy underperformed in 2023 due to style headwinds favoring unprofitable biotech companies over quality businesses. Stock selection challenges in Healthcare and Industrials offset Technology gains. Management remains optimistic about portfolio positioning given high-quality underlying businesses with improving margins and attractive valuations despite market preference for lower-quality names.
Full Quick Take
Conestoga's Micro Cap strategy underperformed in 2023 due to style headwinds favoring unprofitable biotech companies over quality businesses. Stock selection challenges in Healthcare and Industrials offset Technology gains. Management remains optimistic about portfolio positioning given high-quality underlying businesses with improving margins and attractive valuations despite market preference for lower-quality names.
SouthernSun outperformed in Q1 despite banking volatility and economic uncertainty. Strong contributors in HVAC distribution and cash management services offset weakness in packaging. The team rotated capital from mature positions into Louisiana-Pacific's building products transformation story. Manager remains selective on valuations while finding overlooked opportunities with strong fundamentals and competitive advantages.
Full Quick Take
SouthernSun outperformed in Q1 despite banking volatility and economic uncertainty. Strong contributors in HVAC distribution and cash management services offset weakness in packaging. The team rotated capital from mature positions into Louisiana-Pacific's building products transformation story. Manager remains selective on valuations while finding overlooked opportunities with strong fundamentals and competitive advantages.
1 Main Capital outperformed benchmarks with 12.2% Q1 returns, adding dentalcorp Holdings and re-entering Limbach Holdings. Manager sees exceptional value opportunities despite banking stress and economic slowdown. Maintains concentrated approach focused on quality businesses at attractive valuations, expressing highest conviction in current portfolio since fund inception in 2018.
Full Quick Take
1 Main Capital outperformed benchmarks with 12.2% Q1 returns, adding dentalcorp Holdings and re-entering Limbach Holdings. Manager sees exceptional value opportunities despite banking stress and economic slowdown. Maintains concentrated approach focused on quality businesses at attractive valuations, expressing highest conviction in current portfolio since fund inception in 2018.
