Alluvial Capital Management’s Q2 2026 investor letter for the Alluvial Fund reported a 4.9% return, with a year-to-date increase to 8.0%.
A copy of the letter can be downloaded here
While these results are acceptable, they are overshadowed by the impressive performance of small-cap and micro-cap stocks, particularly in AI and semiconductor sectors. The portfolio remains stable and focused on dependable cash flow producers, although it sometimes lags in momentum-driven markets. July showed improvement for Alluvial Fund as benchmarks declined.
The author emphasizes the importance of a dependable investment strategy focused on solid cash flow producers, while expressing confidence that the portfolio’s intrinsic value discount will lessen over time. The letter aims to communicate the fund’s approach and highlights potential opportunities in overlooked sectors, urging a long-term investment perspective amidst current market trends. Also, check the fund’s top five holdings to see its best picks in 2026.