3 weeks ago
15
Soumya Eswaran
Mon, August 3, 2026 astatine 8:33 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 Limbach Holdings, Inc. (NASDAQ:LMB). Limbach Holdings, Inc. (NASDAQ:LMB) is simply a US-based gathering systems solution company. On July 31, 2026, Limbach Holdings, Inc. (NASDAQ:LMB) closed astatine $71.70 per share, reflecting a marketplace capitalization of $854.74 million. Limbach Holdings, Inc. (NASDAQ:LMB) posted a one-month instrumentality of -10.27%, portion its shares mislaid 46.83% implicit the past 52 weeks.
Greystone Capital Management stated the pursuing regarding Limbach Holdings, Inc. (NASDAQ:LMB) successful its Q2 2026 capitalist update:
"Consider our investments successful Limbach Holdings, Inc. (NASDAQ:LMB), APi Group, Bel Fuse, 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.
Limbach is simply a bully illustration of however screens tin get it wrong. When we purchased our shares years ago, consolidated GAAP numbers made Limbach look similar a low-margin mechanical contractor, a illustration astir investors would disregard immediately. Inside the company, however, was Owner Direct Relationships, a recurring, higher-margin, asset-light work concern increasing 15–20% per twelvemonth and coagulated returns connected capital. The consolidated financials blended the 2 together, which meant the much charismatic conception stayed invisible to investors. Spending clip with management, employees and customers, 1 of which was located a mile down the roadworthy from my parents' house, was paramount successful knowing the misperception, and revealed that work enactment carried gross margins 12-15 points higher and served a marketplace increasing respective times faster."
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