Praetorian Capital, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. A copy of the letter can be downloaded here. In the quarter of 2026, the Praetorian Capital Fund LLC (the “Fund”) depreciated by 4.39% net of fees. The firm anticipates significant volatility from quarter to quarter due to the Fund’s concentrated portfolio approach and emphasis on asymmetric opportunities. Both the Event-Driven book and the fund’s core portfolio declined moderately in the quarter. The letter highlighted the market’s complexity and noted a setback in the portfolio this quarter despite strong first-quarter earnings. Conversely, the letter also noted that the AI buildout represented a substantial capital misallocation. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Praetorian Capital highlighted The St. Joe Company (NYSE:JOE). The St. Joe Company (NYSE:JOE) is a real estate development, asset management, and operating company. On July 17, 2026, The St. Joe Company (NYSE:JOE) closed at $60.55 per share, reflecting a market capitalization of $3.48 billion. The St. Joe Company (NYSE:JOE) posted a one-month return of -7.88%, while its shares gained 21.26% over the past 52 weeks.
Praetorian Capital stated the following regarding The St. Joe Company (NYSE:JOE) in its Q2 2026 investor update:
“The St. Joe Company (NYSE:JOE) owns approximately 165,000 acres in the Florida Panhandle. It has been widely known that JOE traded for a tiny fraction of its liquidation value for years, but without a catalyst, it was always perceived to be “dead money.”
Over the past few years, the population of the Panhandle has hit a critical mass where the Panhandle now has a center of gravity that is attracting people who want to live in one of the prettiest places in the country, with zero state income taxes and few of the problems of large cities.
The oddity of the current disdain for so-called “value investments” is that many of them are growing quite fast. I believe that JOE may grow revenue at a rapid rate for the foreseeable future, with earnings growing at a much faster clip. Meanwhile, I believe the shares trade at an attractive multiple on Adjusted Funds from Operations (AFFO), while substantial asset value is tossed in for free….” (Click here to read the full text)
The St. Joe Company (NYSE:JOE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 29 hedge fund portfolios held The St. Joe Company (NYSE:JOE) at the end of the first quarter, compared to 31 in the previous quarter. While we acknowledge the risk and potential of The St. Joe Company (NYSE:JOE) 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 The St. Joe Company (NYSE:JOE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The St. Joe Company (NYSE:JOE) and shared Praetorian Capital’s views on the company in Q1 2026. 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.
