Laughing Water Capital’s Q2 2026 investor letter highlights a 39.8% net return, driven by strong gains in top holdings including Stride (LRN).
Laughing Water Capital reported a 39.8% net return in Q2 2026, outpacing the S&P 500’s 15.0% and the Russell 2000’s 21.5% gains. The firm’s year-to-date return reached 33.6%, fueled by acquisitions of three top five positions and a near-doubling of its largest holding.
Stride (LRN), a key portfolio holding, closed at $92.02 on July 13, 2026, with a market capitalization of $3.91 billion. The stock posted a 10.39% one-month return but declined 31.58% over the past 52 weeks. The firm attributed its success to patience in an inefficient market, emphasizing long-term value investing.
The letter underscored Stride’s role in driving performance, though broader market conditions remained volatile for the education management company.