Investor Letters

Letters through June 30, 2026

52 letters reporting on the period ending June 30, 2026, in each firm's own reckoning.

Polaris Capital Management Second Quarter 2026 International Equity Composite Commentary Polaris International Equity Composite bought Fujifilm Holdings, Astor Transformator Enerji and UniCredit while selling HD Hyundai Electric, SKF and Daicel after valuations or execution changed. The portfolio favored underappreciated cash-generative international businesses as AI concentration, sticky inflation and Middle East risks created valuation dislocations; Alibaba, AIA and several Chinese holdings detracted. SECOND QUARTER 2026 +12.3% AAIGF $98BBABA $290BFUJIY $25BIX $43B
Greenhaven Road Capital Main Fund Q2 Greenhaven Road Capital is reducing concentration and adding catalyst-driven positions while retaining its emphasis on differentiated research. It argues that Burford’s protein litigation, Hagerty’s insurer partnerships, Cellebrite’s Genesis rollout, Lifecore’s capacity sales and Kingsway’s search-model buildout can close gaps between market expectations and business value. Q2 2026 +11.0% BUR $946MCLBT $2.9BHGTY $4.6BANAB $1.7B
Ariel Investments Portfolio Manager Letter Ariel Fund and Ariel Appreciation Fund maintained their valuation discipline despite AI-driven technology leadership, arguing that semiconductor and memory businesses remain cyclical and capital intensive. The managers cited Generac Holdings and Accenture as examples of technology-related investments that met their franchise and valuation standards, while adding several financial, insurance and industrial holdings and exiting lower-conviction positions. Q2 2026 — ACN $113BGNRC $12B
Southeastern Asset Management 2Q26 Commentary Longleaf Partners Fund argues that speculative AI-linked market leaders have become detached from cash-flow fundamentals while its lower-multiple holdings offer greater upside with less risk. The fund engaged with Mattel and supported changes at Fortune Brands, while adding a new healthcare position, exiting Bio-Rad, and selling spun-off FedEx Freight above appraisal. 2Q26 +3.9% ACI $6.1BAVTR $9.4BCNX $5.4BFBIN $5.4B
Horizon Kinetics 2nd Quarter Commentary Horizon Kinetics defends long-horizon compounding through land, royalty and exchange businesses, while arguing that index construction creates mispricings in smaller and unconventional companies. It reduced precious-metals royalties on valuation grounds, backs exchanges against perpetual-futures disruption, and frames bitcoin’s supply schedule and network effects as the basis for its long-term thesis. 2nd Quarter 2026 — TPL $26BAMZN $2.8TCBOE $32BCME $99B
RGA Investment Advisors AI Bottleneck Mania: Crashing Up, and the Opportunities Left Behind RGA Investment Advisors argues that a concentrated AI infrastructure trade created dislocations across the rest of the market. It bought GitLab, Adobe, Adyen and Mips on differing AI and valuation theses, funded by sales of Lattice Semiconductor, Disney and Workday plus an Alphabet trim, and expects to retain Fox shares after its Roku acquisition closes. Q2 2026 — ADBE $110BADYEN $39BFOX $25BGTLB $7B
Ariel Investments Ariel Fund Ariel Fund added Haemonetics and RLI, citing plasma-therapy demand and RLI’s underwriting discipline, while exiting Paramount Skydance and First American on valuation and alternative opportunities. The portfolio maintains conviction in MSGE’s irreplaceable venues and Sphere’s expansion, while viewing Carlyle’s fundraising and dry powder as support for future earnings. Quarter Ended June 30, 2026 +13.6% CG $18BCLB $580MHAE $4.9BLESL $6.1M
Artisan Partners Artisan Global Opportunities Fund Quarterly Commentary Artisan Global Opportunities Fund trimmed AMD and Lam Research after valuation gains, reduced Insmed and defense holdings, and initiated GE Aerospace, Corning, STMicroelectronics and Robinhood. The portfolio favors AI infrastructure franchises while seeking earlier-stage opportunities in health care and consumer internet, with valuation discipline guiding position sizes. Q2 2026 +12.4% AMD $773BAS $18BBAESF $89BCOR $61B
Merion Road Capital Q2 2026 Merion Road maintained exposure to industrial companies rather than shifting toward AI infrastructure, and added Honeywell Aerospace after its separation amid conservative guidance and a discounted valuation. The firm cited gains across several long-term holdings and pressed United Bancorporation of Alabama to improve capital allocation, profitability and governance. Q2 2026 +16.6% FEIM $648MHONA $53BUBAB $186MBELFB $3.8B
Royce Investment Partners Semiannual Letter: How Small-Cap Can Navigate Sustained Leadership Small-cap equities are argued to retain market leadership because earnings growth, relative valuations, and a historically low share of the Russell 3000 still favor the asset class. Royce expects volatility from geopolitical conflict, inflation, and weakening consumers, while finding opportunities in health care, consumer sectors, AI infrastructure, and selected software companies. first half of 2026 — —
Polaris Capital Management Second Quarter 2026 Global Equity Composite Commentary Polaris added Adobe, Fujifilm, UniCredit, Cytokinetics and Booking Holdings while exiting MKS, HD Hyundai Electric, SKF and Daicel after valuation targets or disappointing execution. It favors underappreciated, cash-generative international businesses as concentrated growth leadership, sticky inflation and geopolitical risk create valuation dislocations. SECOND QUARTER 2026 +13.3% AAIGF $98BADBE $110BBABA $290BBKNG $158B
Palm Harbour Capital Letter 2026 Q2 | 687 KB Palm Harbour Capital criticized leveraged single-stock ETFs and passive flows while retaining a value discipline focused on inexpensive cash-generative businesses. It outlined Norma’s capital return, exited BW Energy and M Dias Branco, and argued that Louis Hachette and Lagardère offer material value through a simpler ownership structure. second quarter +4.7% ALHG $2.1B082920 $997M0NFS 0OIY $1.7B
Hoisington Investment Management Quarterly Review and Outlook, Second Quarter 2026 U.S. Treasury securities face a structurally less stable rate regime as deglobalization, labor scarcity, industrial policy and AI infrastructure raise capital demand and inflation risk. Hoisington argues that Federal Reserve balance-sheet restraint is needed to slow liquidity growth, though tighter policy could initially lift real yields and term premiums. Second Quarter 2026 — —
Laughing Water Capital H1 2026 Laughing Water Capital sold through takeouts of Theravance Biopharma, Avanos Medical and SECURE Waste Infrastructure, leaving cash and merger securities for new opportunities. The portfolio added AnaptysBio ahead of its licensing dispute with GSK, while retaining conviction in Liquidia, NextNav, Lifecore Biomedical and Stride despite company-specific overhangs. H1 2026 +33.6% ANAB $1.7BAVNS $1.2BGSK $105BLFCR $172M
Wedgewood Partners Are Hyperscalers Still Magnificent? Wedgewood Partners increased Alphabet, Amazon, Meta Platforms and Microsoft, arguing that their AI infrastructure spending is supported by high-return core businesses and investments that hedge DRAM cost inflation. The firm initiated Hermès, citing its artisan-led supply constraints, durable brand equity and pricing power, while trimming several large technology positions to maintain concentration limits. Second Quarter 2026 +9.4% HRMS AMZN $2.8TGOOGL $4.2TMETA $1.4T
Tweedy, Browne Q2 2026 Commentary Global value portfolios added Capgemini and bioMérieux at discounts to intrinsic value, expanded Autotrader, Berkeley Group and Nihon Nohyaku, and trimmed chemicals and holdings nearing value. Tweedy, Browne warns that AI capital spending, stretched US technology valuations and financing excess echo the pre-2000 market, while smaller and mid-cap non-US holdings remain cheaper. Q2 2026 — 005930 $1.2T4368 $2BBMXXY $10BCAPMF $22B
Polen Capital U.S. Opportunistic High Yield Polen U.S. Opportunistic High Yield – 2Q 2026 Portfolio Manager Commentary Polen Capital retained Baffinland notes through its Canadian creditor-protection process and held RealTruck’s new second-lien notes following its liability-management exchange. The portfolio purchased Meridian Arc’s secured notes for contracted, Google-backed data-center cash flows and exited Oldcastle BuildingEnvelope after a negotiated sponsor transaction. Q2 2026 +2.0% —
Vulcan Value Partners Read More Q2 2026 — —
Royce Investment Partners Royce Small-Cap Fund Manager Commentary Royce Small-Cap Fund favored semiconductor and infrastructure suppliers including Element Solutions, Onto Innovation, MKS, Ultra Clean Holdings, and Arcosa. It exited PAR Technology, ADMA Biologics, Kyndryl Holdings, and TransMedics after deteriorating theses, while adding to Maximus on what it viewed as an attractive valuation. year-to-date period ended 6/30/26 +23.8% ACA $7.1BADMA $2.3BESI $8.5BKD $2.8B
Baron Funds Letter from Ron Ron Baron argues that long-term value creation requires backing executives willing to make consequential investments despite immediate costs and visible risks. He presents MSCI’s private-assets data strategy, Tesla’s autonomy and manufacturing ambitions, and SpaceX’s launch, connectivity, and AI infrastructure as examples of that approach. JUNE 30, 2026 — MSCI $41BTSLA $1.4T0R24 $650BGOOGL $4.2T
Royce Investment Partners Royce Premier Fund Manager Commentary Royce Premier Fund credited MKS, Littelfuse, ESCO Technologies, Onto Innovation and RBC Bearings for technology and industrial strength, while Colliers, Morningstar, Exponent, TMX Group and ESAB detracted. The managers argue that quality small caps with durable moats, cash generation and high returns on invested capital should benefit after speculative leadership gives way to fundamentals. year-to-date period ended 6/30/26 +23.5% CIGI $5.5BESE $7.4BEXPO $3.3BLFUS $10B
Royce Investment Partners Royce Micro-Cap Fund Manager Commentary Royce Micro-Cap Fund emphasized AI-infrastructure suppliers Ichor Holdings, Ultra Clean Holdings, Applied Optoelectronics, Vishay Precision Group, and Cohu. The managers exited PAR Technology and Forward Air, added to PowerFleet and EVI Industries, and began reallocating technology winners toward undervalued staffing, software, agriculture, commercial-vehicle, and medical-technology opportunities. first half of 2026 +45.4% AAOI $11BAIOT $409MAORT $1.4BCOHU $2.6B
Intrepid Capital Mutual Fund Commentary Intrepid Income Fund 2Q 2026 Intrepid Income Fund maintains a short-duration, selective high-yield posture, arguing that strong issuer fundamentals and lender protections offset historically tight spreads. The fund flags private-credit redemption pressure, payment-in-kind restructurings and expensive public equities, while retaining flexibility to deploy capital during dislocations. 2Q 2026 +2.4% —
FPA Crescent Fund FPA Crescent Fund 2Q26 Commentary FPA Crescent Fund scaled back exposure to AI and data-center beneficiaries as valuations and capital-cycle risks left little margin of safety. It added 14 largely AI-agnostic mid-cap businesses, including specialty chemical distribution and biotech equipment companies, seeking durable growth, strong balance sheets and conservative valuation support. 2Q26 +7.1% 028260 $47BADI $180BNTDOF $62BNVDA $5.1T
Cedar Creek Partners Cedar Creek Partners 2026 Second Quarter Results Cedar Creek Partners increased expert-market exposure while building positions in discounted microcaps and community banks. The fund argues that Exco Resources, Harbor Diversified and PHI Group are mispriced because trading restrictions, incomplete filings and flawed tender processes obscure underlying asset values, while Solitron’s defense backlog and strategic review provide a separate catalyst. Q2 ‘26 +5.4% ENDI $135MEXCE $1.1BHRBR $131MMIFF delisted
First Eagle Investments Small Cap Opportunity Fund Commentary First Eagle Small Cap Opportunity Fund maintained strict valuation discipline after sharp gains in parts of the portfolio and redeployed profits into undervalued healthcare, consumer staples and idiosyncratic opportunities. AI infrastructure demand supported semiconductor suppliers including Vishay Intertechnology, Silicon Motion, Ultra Clean, Cohu and TTM Technologies, while energy holdings faced pressure from easing Middle East tensions. second quarter 2026 +25.5% AORT $1.4BCENX $4.6BCOHU $2.6BLXU $747M
First Eagle Investments Gold Fund Commentary Gold Fund Commentary attributes gold’s decline to tighter-policy expectations following the Iran war, persistent inflation and a stronger dollar, while arguing that fiscal strains, reserve diversification and geopolitical risk preserve gold’s role as a strategic hedge. The portfolio review discusses Pan American Silver’s Escobal CVRs, Peñoles’ Fresnillo stake, B2Gold’s asset sale and Goose Project disruption, and the operating strengths of Agnico Eagle and Wheaton Precious Metals. 2Q 2026 -16.6% AEM $105BBTG $10BPAAS $22BWPM $72B
First Eagle Investments Short Duration High Yield Municipal Fund Commentary Short Duration High Yield Municipal Fund emphasized Brightline West bonds after greater trading activity, prospective federal loan financing and new construction contracts. Healthcare bonds benefited from improving hospital operations and reimbursement rates. Brightline Florida bonds faced pressure while the rail operator sought an equity infusion, despite improving ridership and revenue. second quarter 2026 +2.5% —
LVS Advisory Q2 2026 Vistance Networks is framed as a debt-cleared telecom remainco whose asset sales and planned shareholder distributions leave a cash-generative business that LVS expects may be sold. Hikari Tsushin is presented as a Japanese capital allocator with disciplined investment hurdles, founder-led ownership and an undervalued collection of operating businesses and investments. first half of 2026 — HKTGF $11BVISN $2.6B
First Eagle Investments Overseas Fund Commentary The Overseas Fund repositioned into international value stocks it considers attractively valued outside mega-cap benchmarks while retaining gold as a strategic hedge against fiscal and geopolitical risk. Samsung Electronics, Samsung Life, Merck, Taiwan Semiconductor and Richemont led holdings discussed, while the team maintained exposure to Shell, Imperial Oil, Alibaba and Jardine Matheson despite near-term pressures. second quarter 2026 +3.2% 032830 $43BBABA $290BCFRHF $136BIMO $66B
First Eagle Investments Global Equity ETF Commentary Global Equity ETF positioning favors durable, scarce assets at sensible valuations as tighter US rate expectations, elevated equity issuance and AI capital spending raise concerns over mega-cap valuations. Samsung, Alphabet, Merck, Elevance and Texas Instruments benefited from operating catalysts, while Noble, Charter, HCA, Exxon and Agnico Eagle were retained despite cyclical or operating headwinds. second quarter 2026 +5.0% 0R1M AEM $105BCHTR $18BELV $86B
First Eagle Investments High Yield Municipal Fund Commentary High Yield Municipal Fund emphasized supportive municipal technicals, improving issuer fundamentals and attractive tax-equivalent yields despite uncertainty over Federal Reserve policy. The portfolio benefited from Brightline West financing progress and healthcare-credit improvements, while Brightline Florida bonds faced pressure as the rail operator sought an equity infusion to strengthen its capital structure. second quarter 2026 +4.3% —
First Eagle Investments Overseas Equity ETF Commentary Overseas Equity ETF emphasized Samsung Electronics, Merck KGaA, Richemont, Taiwan Semiconductor and FANUC, citing memory-chip demand, life-sciences expansion, luxury stabilization, AI semiconductor scarcity and industrial robotics. It retained conviction in Shell, Imperial Oil, Agnico Eagle, Jardine Matheson and Wheaton despite pressure from lower oil and precious-metals prices. second quarter 2026 +7.1% AEM $105BCFRHF $136BFANUF $36BIMO $66B
GreensKeeper Asset Management Scorecard #54 – Value in Action The Value Fund materially increased ICON plc after concluding its accounting restatement would not impair cash generation or customer relationships. It retained positions in Richemont, Alphabet and Elevance Health, while arguing that concerns over Intercontinental Exchange’s perpetual-futures competition and Lockheed Martin’s execution issues are temporary. Q2 +10.9% ICLR $14BCFRHF $136BELV $86BGOOGL $4.2T
Grandeur Peak Global Advisors 2Q26 Quarterly Letter Grandeur Peak Global Advisors rotated away from software exposed to AI-driven obsolescence risk and favored semiconductor, industrial, consumer and capital-markets holdings with improving fundamentals. The firm remains cautious on banks, REITs and speculative biotechnology, while selectively seeking Chinese consumer brands that create emotional value amid weak consumer confidence. 2Q26 — —
CrossingBridge Advisors Q2 2026 Commentary - To Infinity and Beyond CrossingBridge argues that AI infrastructure can be economically transformative while still producing poor credit outcomes when capital spending, competition and weak lender protections outrun cash flows. It bought Polar DC, Oracle, Warner Bros. Discovery, Spirit Airlines and GAMHOL debt, favoring secured structures, covenant protection and liquidity amid tight credit spreads. Q2 2026 — APLD $7.9BEVOK delistedORCL $413BSAVE delisted
White Falcon Capital Management Q2 2026 Partner Update Letter White Falcon sold roughly three-quarters of AMD after its valuation came to reflect an optimistic AI consensus, while retaining conviction in Nu Holdings, Topicus and EPAM. The portfolio is adding precious-metals exposure on weakness and favors fundamentally strong businesses whose valuations remain detached from their long-term economics. Q2 2026 +8.5% AMD $773BEPAM $5.5BNU $71BTOI $6.2B
Grey Owl Capital Management Q2 2026 GOAS increased its weighting toward US-listed equities while retaining an all-season balance across growth and inflation exposures. It argues that stable growth, stubborn inflation and mixed market internals favor diversification over a conventional 60/40 portfolio or directional forecasts. Q2 2026 +4.2% TCAI
Upslope Capital Management 2026-Q2 Update Upslope retained its cheap, defensive long book amid a momentum-driven preference for AI-linked and speculative stocks, while exiting Intel, Hershey and Jack Henry on valuation or risk-management grounds. The fund added Magnum Ice Cream, arguing its global brands, frozen supply chain, standalone margin opportunity and valuation create an attractive defensive investment. Q2 2026 -6.6% MICC $12BCCK $13BCME $99BDPLMF $13B
Weitz Investment Management Letter to Shareholders: Value Matters — Beyond the AI Boom Weitz Investment Management argues that narrow AI-led market leadership resembles the late-1990s technology bubble and may be starting to broaden. The firm holds Alphabet, Microsoft, Amazon and Meta for their established cash-generative businesses, while warning that AI infrastructure spending could take longer to earn adequate returns. second quarter — AMZN $2.8TGOOGL $4.2TMETA $1.4TMSFT $3.6T
Distillate Capital 2026 Q2 Letter to Investors: Momentum Distillate Capital argues that AI-linked valuations have outrun underlying free cash flow, with hyperscaler capital spending shifting profits toward semiconductor and equipment suppliers. The firm favors high-quality, low-valuation stocks, cites Accenture as a contrarian example, and warns that depreciation, stock compensation, off-balance-sheet financing, and circular AI funding can obscure earnings. 2026 Q2 — ACN $113BAMZN $2.8TAVGO $1.8TGOOGL $4.2T
O'Keefe Stevens Advisory Quarterly Investor Letter Q2 2026 O'Keefe Stevens Advisory initiated Sotera Health after Warburg Pincus exited, arguing that its sterilization duopoly, regulatory barriers and normalizing capital spending can outweigh litigation concerns. The portfolio trimmed and hedged Qualcomm and Corning, retained substantial cash, and sees potential bargains outside crowded AI infrastructure trades. Q2 2026 — SHC $5.6BCALY $2.8BGLW $131BHCC $5.6B
Sequoia Fund Q2 2026 Sequoia Fund Letter Sequoia Fund added to Bio-Techne, SAP and ICON Plc, funded by trims to Sunbelt Rentals and Elevance Health and exits from Amentum Holdings, Liberty Broadband and Credit Acceptance. The fund is pursuing a shareholder-approved conversion from a mutual fund to an actively managed ETF, targeted for mid-October. second quarter of 2026 +11.7% AMTM $4.9BELV $86BICLR $14BLBRDA $5.2B
Intrepid Capital Mutual Fund Commentary Intrepid Capital Fund 2Q 2026 Intrepid Capital Fund favors family-controlled, cash-generative holdings as investors reassess the capital demands of artificial-intelligence infrastructure. Mark Travis questions Alphabet’s equity and debt financing and argues that SpaceX’s public offering reflects speculative demand rather than conservative portfolio criteria. 2Q 2026 +6.6% GOOGL $4.2T
Third Avenue Management Value Fund Q226 Third Avenue Value Fund added thyssenkrupp, exited Ayala and Compañía Sud Americana de Vapores, and argues that its restructuring can surface value from standalone businesses. The fund links takeover approaches for easyJet and Paltac to tangible assets, net cash and hard-to-replicate operating networks, while maintaining its offshore-energy thesis. Q226 +1.3% 8283 $2.5BESYJY $5.1BTKAMY $9B6856 $6.2B
Patient Capital Management 2Q26 Portfolio Activity & Attribution Opportunity Equity added Adyen, Global Payments, Genius Sports, Fidelity Wise Origin Bitcoin Fund and QXO preferreds while exiting iShares Bitcoin Trust, Dave & Buster's and Noble. The strategy argues that depressed expectations in managed care, biotech, payments, offshore drilling and Adobe obscure durable earnings power and consolidation opportunities. 2Q26 +17.3% ADBE $110BADYEN $39BCVS $120BFBTC
Patient Capital Management 2Q26 Quarterly Market Review The second quarter of 2026 saw an AI-led equity rally as easing Iran War tensions lowered oil prices. Inflation remained elevated, consumer sentiment stayed depressed despite resilient spending, and the Federal Reserve held rates steady while signaling a more restrictive path. 2Q26 — —
Oakmark Funds Wrong in the right direction Oakmark retained similar weights in Samsung and ASML after revising valuations upward to reflect AI-driven demand for high-bandwidth memory and lithography equipment. It credited Samsung’s memory scale and process leadership, ASML’s EUV-tool monopoly, and Intertek’s board for accepting a private-equity offer that recognized self-help opportunities and execution risks. 2Q 2026 — ASML $673BSSNLF delistedIKTSF $12B
Polen Capital 5Perspectives Growth Opportunities Polen 5Perspectives Growth Opportunities 2Q 2026 Portfolio Manager Commentary Polen 5Perspectives Growth Opportunities increased Technology exposure, adding semiconductor and neocloud positions funded by reductions in Industrials, Financials, and Consumer Discretionary. Bloom Energy, Advanced Micro Devices, and Nebius Group benefited from AI infrastructure demand, while Fastly, BWX Technologies, and Palantir Technologies lagged amid selective positioning. 2Q 2026 +25.2% AMD $773BBE $60BBWXT $14BFSLY $3.6B
Oakmark Funds The certainty trap Oakmark argues that AI investing should avoid binary forecasts and favor bonds priced for a broad range of outcomes. It favors Meta, Oracle and select single-tenant data center bonds for their resilient credit profiles and contractual protections, while avoiding highly leveraged NeoCloud issuers whose economics depend on sustained compute demand. 2Q 2026 — META $1.4TORCL $413B
Dodge & Cox Stock Fund Stock Fund Investment Commentary Dodge & Cox Stock Fund initiated positions in Visa, Thermo Fisher Scientific, and KKR after AI-disruption concerns and macro fears pushed their valuations lower. The fund retained conviction in Fidelity National Information Services, Fiserv, and Charter Communications, arguing that their valuation declines overstate risks, while its technology underweight hurt relative results. Second Quarter +5.6% KKR-P-D TMO $231BV $693BCHTR $18B
Oakmark Funds The discipline to stay boring Oakmark Fund retained its value discipline rather than buy AI hardware companies without a sufficient margin of safety, despite their dominance in major value indexes. The portfolio favors businesses such as Corebridge Financial while expecting holdings including Capital One, AIG, Alphabet and Amazon to benefit from AI adoption. 2Q 2026 +2.5% AMZN $2.8TCOF $133BCRBG $14BGOOGL $4.2T