3 weeks ago
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Soumya Eswaran
Mon, August 3, 2026 astatine 8:32 AM CDT 3 min read
Greystone Capital Management, an concern absorption company, released its second-quarter 2026 capitalist letter. A transcript of the missive tin be downloaded here. During Q2 2026, Greystone Capital's median relationship instrumentality was +7.2%, trailing down S&P 500 (+15.2%) and Russell 2000 (+21.5%). Year-to-date returns were +8.6%, compared to +10.2% and +22.5% for the respective indices. The firm's show is not tied to indices, arsenic they bash not ain the index-driving companies. The missive emphasizes that Greystone's strategy focuses connected concern fundamentals alternatively than chasing index-driven gains, peculiarly avoiding the existent AI-driven marketplace roar owed to valuation risks. The concern strategy is based connected recognizing opportunities amid marketplace neglect alternatively than popularity, and the steadfast remains unfastened to AI investments astatine due valuations. Historically, the steadfast has outperformed with a cumulative +222.0% instrumentality since inception, compared to applicable indices, reflecting a committedness to cardinal concern maturation implicit time. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.
In its Q2 2026 capitalist letter, Greystone Capital Management highlighted stocks similar Bel Fuse Inc. (NASDAQ:BELFB). Bel Fuse Inc. (NASDAQ:BELFB) designs, manufactures, markets, and sells products that power, protect, and link physics circuits. On July 31, 2026, Bel Fuse Inc. (NASDAQ:BELFB) closed astatine $271.97 per share, reflecting a marketplace capitalization of $3.76 billion. Bel Fuse Inc. (NASDAQ:BELFB) posted a one-month instrumentality of -1.98%, portion its shares gained 106.81% implicit the past 52 weeks.
Greystone Capital Management stated the pursuing regarding Bel Fuse Inc. (NASDAQ:BELFB) successful its Q2 2026 capitalist update:
"Consider our investments successful Limbach, APi Group, Bel Fuse Inc. (NASDAQ:BELFB), and Secure Waste Infrastructure. If you surface concern ideas based connected affirmative cardinal oregon method attributes, arsenic a ample information of today's actively managed beingness does, these companies volition not marque the list. Each screened poorly, operated without a chiseled statement oregon a nonstop comp, appeared overly cyclical oregon confined to a tiny market, and created worth done portion economics that took clip to scope the reported financials. In each case, the marketplace assigned a label, valued the concern arsenic the worst mentation of that label, and moved on.
Bel Fuse screened adjacent worse. GAAP profitability was antagonistic and margins sat astatine astir a 3rd of adjacent levels, contempt products with agelong plan cycles, precocious switching costs, and a precocious outgo of failure, the aforesaid qualities the marketplace paid up for elsewhere. Investors saw 'electronic components manufacturer,' assumed cyclical commodity business, and priced it accordingly. Conversations with a caller CFO made the mispricing understandable, arsenic Bel had looked astatine SKU-level profitability for the archetypal clip successful decades, and contempt holding sole-source positions connected products, Bel had ne'er systematically raised prices successful its history. EBITDA margins moved from 5% to 15% erstwhile they did."
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