Investor Letters
Letters through March 31, 2026
15 letters reporting on the period ending March 31, 2026, in each firm's own reckoning.
- Polaris Capital Management First Quarter 2026 International Equity Composite Commentary Polaris International Equity Composite sold Methanex after it reached its valuation target, exited Capgemini as the outsourcing thesis weakened, and initiated Ryanair after an oil-driven selloff. The portfolio favors international diversification, financial holdings that benefit from higher rates, and quality companies trading at dislocated valuations. FIRST QUARTER 2026 +5.1% MEOH $4.5BRYAAY $29BBABA $290BBABWF $26B
- Polaris Capital Management First Quarter 2026 Global Equity Composite Commentary Polaris Global Equity Composite benefited from energy, technology, materials and utilities as the Strait of Hormuz closure reshaped sector leadership. The portfolio exited Methanex, Sally Beauty, UnitedHealth and Capgemini, then initiated Eastman Chemical and Ryanair on valuation, cost-cutting and supply-demand catalysts. FIRST QUARTER 2026 +5.9% CAPMF $22BDNBBF $48BE $86BMEOH $4.5B
- Broyhill Asset Management The Broyhill Letter 2026.Q1 Broyhill added IQVIA and Sotera Health to top holdings, arguing that regulated clinical research and sterilization infrastructure will benefit rather than be displaced by AI. The portfolio sold Ball, Kenedy Wilson, Fresenius Medical Care, Evolution and Avantor, then initiated Microsoft, Smurfit WestRock, Masco and Floor & Decor amid sharp market dispersion. first quarter -6.0% IQV $41BSHC $5.6BAVTR $9.4BBALL $17B
- Horizon Kinetics 1st Quarter Commentary Horizon Kinetics argues that crowd-driven capital flows create durable discounts in royalty businesses, partnerships and other assets outside index mandates. It discusses recovery-stage positions in Hawaiian Electric and Cheniere, private mineral-rights investments, and senior CLO tranches as income sources with inflation protection and limited rate sensitivity. 1st Quarter 2026 — AB $3.4BHE $2BLNG $57BMIAX $4.2B
- Maran Capital Management Q1 2026 Letter to Partners Maran Partners Fund used software and broader market dislocations to begin a small position in a cash-rich, free-cash-flow-generative company viewed as an AI fear casualty. The fund also reviews a delisting, an acquired uplisting candidate, and an insurance demutualization, arguing that patience and illiquidity can create special-situation opportunities. first quarter -2.3% HKHC $498M
- Alluvial Capital Management Letter to Limited Partners First Quarter 2026 Alluvial Fund sold Peakstone Realty Trust following its agreed acquisition by Brookfield, while retaining a focus on unpopular real estate despite a largely matured distressed-property cycle. The portfolio added Gulf Marine Services and argues for EACO, FitLife Brands, McBride, McDermott and Zegona based on operational catalysts, valuation discounts and balance-sheet progress. First Quarter 2026 +3.0% EACO $574MFTLF $96MGMS $290MMCB $395M
- RGA Investment Advisors Year Zero: How AI Is Reshaping Our Investment Process RGA Investment Advisors has rebuilt its research workflow around Claude Code, structured data tools and cross-model validation while retaining its low-turnover GARP discipline. It argues that Amazon Web Services is positioned to capture AI workflow demand through model-agnostic orchestration, and uses a SaaS risk tracker to identify resilient software businesses and avoid value traps. Q1 2026 — AMZN $2.8TGOOGL $4.2TNVDA $5.1T
- Hayden Capital Quarterly Letter 2026 | Vol. 1 Hayden Capital argues that the AI infrastructure trade has created attractive valuations in internet and fintech platforms, where incumbents can use proprietary data to capture AI’s value. It adds to Sea Ltd and Unity, citing Shopee’s VIP and logistics flywheel and Unity’s Vector advertising platform under new leadership. Q1 2026 -28.3% SE $72BU $20BAMZN $2.8TAPP $102B
- O'Keefe Stevens Advisory Quarterly Investor Letter Q1 2026 O'Keefe Stevens Advisory built cash after selling Alibaba, Fannie Mae common, Mercedes-Benz and Tri Pointe Homes, while initiating Baxter and adding to Perrigo and Weyerhaeuser. The firm argues that elevated AI-related spending and stretched valuations warrant selective underwriting, with Baxter’s deleveraging and Perrigo’s restructuring offering security-specific catalysts. Q1 2026 — BAX $14BPRGO $1.9BBABA $290BCALY $2.8B
- Grey Owl Capital Management Q1 2026 Grey Owl All-Season Strategy increased fixed income and cash, trimmed gold and commodities after their advances, realized some energy gains, and concentrated global equities in Latin America and Asia. It sees accelerating growth alongside inflation and unresolved Middle East risks, retaining a balanced but cautious stance with capital available to deploy on weakness. first quarter of 2026 +1.7% —
- Patient Capital Management 1Q26 Portfolio Activity & Attribution Patient Opportunity Equity Strategy added Adobe after the software selloff and replaced FBTC with IBIT to retain Bitcoin exposure, while selling Alibaba at estimated intrinsic value and exiting Mattel and Peloton to fund new ideas. The strategy argues that concentrated energy exposure offers an anti-fragile diversifier, with offshore drilling and pipeline constraints supporting Noble, Seadrill and Energy Transfer. 1Q26 -6.0% ADBE $110BCHYM $12BET $73BIBIT $173B
- Palm Valley Capital First Quarter 2026 Commentary Palm Valley Capital Fund gained 0.74% in the first quarter, trailing the S&P SmallCap 600 Index’s 3.51% return while holding 77% of assets in Treasury bills and cash equivalents. The fund argues that AI fears have mispriced Amdocs, Resources Connection and other holdings, while trimming Chord Energy, Heartland Express and Farmland Partners near estimated value. First Quarter 2026 +0.7% CHRD $8.1BDOX $6.5BFLO $1.6BFPI $437M
- Heartland Advisors Heartland Value Fund 1Q26 Portfolio Manager Commentary Heartland Value Fund argues that geopolitical volatility has not derailed a longer-term rotation toward small-cap value, citing discounted valuations, improving fundamentals and underownership. The fund exited acquired holdings Calavo Growers, SunOpta, Alexander & Baldwin and Plymouth Industrial, while adding conviction in Allegiant, i3 Verticals and Chiron Real Estate. 1Q26 +7.4% ALGT $2.1BCVGW delistedIIIV $436MSTKL delisted
- Oakmark Funds Why didn’t we do better when value outperformed? Oakmark Fund argues that Russell Value’s advance was driven by expensive semiconductor-related growth stocks rather than the low-P/E rebound it expected. The fund added eight positions, sold energy and industrial holdings, and redeployed into software and financials, where it sees AI fears and unusually low relative valuations improving the risk-reward case. 1Q 2026 -2.5% —
- Intrepid Capital Mutual Fund Commentary Intrepid Capital Fund 1Q 2026 Intrepid Capital Fund faced a sharp market selloff after conflict in Iran disrupted oil supplies and pushed Treasury yields higher. Sprott, Permian Resources, Fabrinet, Madison Square Garden Sports and Alphabet led contributors, while Fiserv, Jefferies, Take-Two, Conduent notes and Copart detracted. 1Q 2026 -0.9% —
