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.
Longleaf Partners Small-Cap Fund posted a -2.47% return in the second quarter of 2026, lagging a momentum-driven rally fueled by extreme speculative multiple expansion in artificial intelligence and tech names. Holding an 11.7% cash buffer across 16 high-conviction positions trading in the mid-50s price-to-value range, the manager remains patient, leaning into corporate actions and buybacks rather than chasing expensive speculative market trends.
Full Quick Take
Longleaf Partners Small-Cap Fund posted a -2.47% return in the second quarter of 2026, lagging a momentum-driven rally fueled by extreme speculative multiple expansion in artificial intelligence and tech names. Holding an 11.7% cash buffer across 16 high-conviction positions trading in the mid-50s price-to-value range, the manager remains patient, leaning into corporate actions and buybacks rather than chasing expensive speculative market trends.
Small-cap equities have entered a secular outperformance regime backed by accelerating EPS growth and 25-year valuation lows relative to large caps. While speculative, unprofitable stocks temporarily led the initial surge, disciplined exposure to profitable, low-volatility quality growth compounders provides the superior risk-adjusted vehicle for the decade ahead.
Full Quick Take
Small-cap equities have entered a secular outperformance regime backed by accelerating EPS growth and 25-year valuation lows relative to large caps. While speculative, unprofitable stocks temporarily led the initial surge, disciplined exposure to profitable, low-volatility quality growth compounders provides the superior risk-adjusted vehicle for the decade ahead.
