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 Limbach Holdings, Inc. (NASDAQ:LMB). Limbach Holdings, Inc. (NASDAQ:LMB) is a US-based building systems solution company. On July 31, 2026, Limbach Holdings, Inc. (NASDAQ:LMB) closed at $71.70 per share, reflecting a market capitalization of $854.74 million. Limbach Holdings, Inc. (NASDAQ:LMB) posted a one-month return of -10.27%, while its shares lost 46.83% over the past 52 weeks.
Greystone Capital Management stated the following regarding Limbach Holdings, Inc. (NASDAQ:LMB) in its Q2 2026 investor update:
“Consider our investments in Limbach Holdings, Inc. (NASDAQ:LMB), APi Group, Bel Fuse, 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.
Limbach is a good example of how screens can get it wrong. When we purchased our shares years ago, consolidated GAAP numbers made Limbach look like a low-margin mechanical contractor, a profile most investors would dismiss immediately. Inside the company, however, was Owner Direct Relationships, a recurring, higher-margin, asset-light service business growing 15–20% per year and solid returns on capital. The consolidated financials blended the two together, which meant the more attractive segment stayed invisible to investors. Spending time with management, employees and customers, one of which was located a mile down the road from my parents’ house, was paramount in understanding the misperception, and revealed that service work carried gross margins 12-15 points higher and served a market growing several times faster.”
Limbach Holdings, Inc. (NASDAQ:LMB) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 21 hedge fund portfolios held Limbach Holdings, Inc. (NASDAQ:LMB) at the end of the first quarter, compared to 24 in the previous quarter. While we acknowledge the risk and potential of Limbach Holdings, Inc. (NASDAQ:LMB) 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 Limbach Holdings, Inc. (NASDAQ:LMB) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Limbach Holdings, Inc. (NASDAQ:LMB) and shared the list of best small-cap data center cooling stocks to buy. 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.
