Greystone Capital Management, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. During Q2 2026, Greystone Capital’s median account return was +7.2%, trailing behind 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 performance is not tied to indices, as they do not own the index-driving companies. The letter emphasizes that Greystone’s strategy focuses on business fundamentals rather than chasing index-driven gains, particularly avoiding the current AI-driven market boom due to valuation risks. The investment strategy is based on recognizing opportunities amid market neglect rather than popularity, and the firm remains open to AI investments at appropriate valuations. Historically, the firm has outperformed with a cumulative +222.0% return since inception, compared to relevant indices, reflecting a commitment to fundamental business growth over time. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Greystone Capital Management highlighted stocks like Bel Fuse Inc. (NASDAQ:BELFB). Bel Fuse Inc. (NASDAQ:BELFB) designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. On July 31, 2026, Bel Fuse Inc. (NASDAQ:BELFB) closed at $271.97 per share, reflecting a market capitalization of $3.76 billion. Bel Fuse Inc. (NASDAQ:BELFB) posted a one-month return of -1.98%, while its shares gained 106.81% over the past 52 weeks.
Greystone Capital Management stated the following regarding Bel Fuse Inc. (NASDAQ:BELFB) in its Q2 2026 investor update:
“Consider our investments in Limbach, APi Group, Bel Fuse Inc. (NASDAQ:BELFB), and Secure Waste Infrastructure. If you screen investment ideas based on positive fundamental or technical attributes, as a large portion of today’s actively managed universe does, these companies will not make the list. Each screened poorly, operated without a distinct label or a direct comp, appeared overly cyclical or confined to a small market, and created value through unit economics that took time to reach the reported financials. In each case, the market assigned a label, valued the business as the worst version of that label, and moved on.
Bel Fuse screened even worse. GAAP profitability was negative and margins sat at roughly a third of peer levels, despite products with long design cycles, high switching costs, and a high cost of failure, the same qualities the market paid up for elsewhere. Investors saw ‘electronic components manufacturer,’ assumed cyclical commodity business, and priced it accordingly. Conversations with a new CFO made the mispricing understandable, as Bel had looked at SKU-level profitability for the first time in decades, and despite holding sole-source positions on products, Bel had never systematically raised prices in its history. EBITDA margins moved from 5% to 15% once they did.”
Bel Fuse Inc. (NASDAQ:BELFB) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 24 hedge fund portfolios held Bel Fuse Inc. (NASDAQ:BELFB) at the end of the first quarter, up from 20 in the previous quarter. While we acknowledge the risk and potential of Bel Fuse Inc. (NASDAQ:BELFB) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Bel Fuse Inc. (NASDAQ:BELFB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Bel Fuse Inc. (NASDAQ:BELFB) and shared the list of best stocks to buy according to billionaire Glenn Dubin’s Highbridge Capital. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
