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 Lincoln Educational Services Corporation (NASDAQ:LINC). Lincoln Educational Services Corporation (NASDAQ:LINC) is a US based career-oriented postsecondary education services provider to high school graduates and working adults. On July 17, 2026, Lincoln Educational Services Corporation (NASDAQ:LINC) closed at $42.95 per share. One-month return of Lincoln Educational Services Corporation (NASDAQ:LINC) was -11.90%, and its shares gained 90.53% over the past 52 weeks. Lincoln Educational Services Corporation (NASDAQ:LINC) has a market capitalization of $1.38 billion.
Praetorian Capital stated the following regarding Lincoln Educational Services Corporation (NASDAQ:LINC) in its Q2 2026 investor update:
“Technical Colleges; Educational Services Corporation (NASDAQ:LINC) and Universal Technical Institute (UTI – USA): These two technical colleges are helping to train the next generation of skilled tradespeople and medical workers. As AI reduces the demand for office workers, many millions of existing workers must be reskilled, while high school graduates will naturally seek out better job opportunities that offer higher wages, with less career risk.
LINC and UTI are the two largest technical colleges in the US. I expect them to continue opening new campuses and growing student counts. Based on management guidance, they’re both quite cheap looking out a few years, net of startup costs for new campuses. I think they’ll dramatically overshoot guidance in terms of new student starts, utilization and recruitment costs, leading to substantial margin growth on relatively fixed-cost structures.”
Lincoln Educational Services Corporation (NASDAQ:LINC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Lincoln Educational Services Corporation (NASDAQ:LINC) at the end of the first quarter, up from 23 in the previous quarter. In Q1 2026, Lincoln Educational Services Corporation’s (NASDAQ:LINC) revenue increased 22.5% year-over-year to $144 million. While we acknowledge the risk and potential of Lincoln Educational Services Corporation (NASDAQ:LINC) 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 Lincoln Educational Services Corporation (NASDAQ:LINC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Lincoln Educational Services Corporation (NASDAQ:LINC) and shared Wasatch Micro Cap Fund’s insights on the company. 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.
