Buckley Capital Advisors, an investment management company, released its second quarter 2026 investor letter. A copy of the letter can be downloaded here. The second quarter delivered strong, broad-based gains across the portfolio, with several of the Fund’s largest positions contributing to performance. Buckley Capital returned 36.0% net during the quarter and 29.7% net year-to-date, outperforming the iShares Russell 2000 Value and iShares Russell 2000. The firm remained disciplined in recycling capital by trimming or exiting investments where the thesis had played out or the risk-reward had weakened. Capital was redirected toward businesses where improving fundamentals, catalysts, and attractive valuations support long-term upside. The firm continues to focus on misunderstood small and mid-cap companies with underappreciated earnings power and believes the portfolio is among its strongest in recent years. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Buckley Capital highlighted Celsius Holdings, Inc. (NASDAQ:CELH). Celsius Holdings, Inc. (NASDAQ:CELH) develops, processes, manufactures, markets, sells, and distributes functional energy drinks in the United States and internationally. On July 27, 2026, Celsius Holdings, Inc. (NASDAQ:CELH) closed at $28.79 per share. One-month return of Celsius Holdings, Inc. (NASDAQ:CELH) was -1.67% and its shares lost 39.31% over the past 52 weeks. Celsius Holdings, Inc. (NASDAQ:CELH) has a market capitalization of $7.36 billion.
Buckley Capital stated the following regarding Celsius Holdings, Inc. (NASDAQ:CELH) in its Q2 2026 investor letter:
“Celsius Holdings, Inc. (NASDAQ:CELH) is a new position for us. We are attracted to the relatively low cyclicality and strong secular growth of the business. The energy drinks industry is growing at high single to low double digits, and CELH will maintain or likely grow its market share over time. Additionally, Monster Beverage, its main comp, has 31.5% EBITDA margins and is one of the best-performing stocks of the last 30 years. MNST trades at 42x 2026 estimated earnings while CELH trades at 19x. More importantly, CELH trades at closer to 12x our estimate of 2027 earnings while MNST trades at 37x.
This huge delta should converge as CELH is facing some short-term issues that we believe will clear up in the next few months. The first is the company’s need to rationalize its portfolio of SKUs, which is currently in process. The Celsius brand overall has been showing negative growth, but as the SKU count rationalization completes, the remaining SKUs should grow at double digits, and this headwind will shift to a tailwind. Additionally, CELH is getting significantly more distribution over the next 6-12 months, with a 17% increase expected. The negotiations for the increased shelf space are done, but there is a delay in implementation due to hardware installs which are underway. Lastly, Red Bull is raising prices by high single digits in the next 9 months, and we believe CELH will get the chance to follow shortly afterward…” (Click here to read the full text)
Celsius Holdings, Inc. (NASDAQ:CELH) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Celsius Holdings, Inc. (NASDAQ:CELH) at the end of the first quarter which was 56 in the previous quarter. While we acknowledge the risk and potential of Celsius Holdings, Inc. (NASDAQ:CELH) 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 Celsius Holdings, Inc. (NASDAQ:CELH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Celsius Holdings, Inc. (NASDAQ:CELH) and shared a list of fastest growing consumer 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.
