Laughing Water Capital, an investment management company, released its second-quarter 2026 investor letter.
A copy of the letter can be downloaded here
The second quarter was exceptionally good for the portfolio, with Class A investment in Laughing Water Capital returning approximately 39.8% net of all fees and expenses, bringing the YTD return to approximately 33.6% net. The SP500TR and R2000 returned approximately 15.0% and 21.5%, respectively, in the second quarter. The impressive performance was driven by three of the top five positions being acquired, with its largest position nearly doubling during the quarter.
The letter emphasizes that patience can often lead to profits in an inefficient market characterized by fluctuations, suggesting that investing in undervalued stocks can yield good long-term returns. In addition, please check the portfolio’s top five holdings to know its best picks in 2026. In its Q2 2026 investor letter, Laughing Water Capital highlighted Liquidia Corporation (NASDAQ:LQDA).