Gate City Capital returned 6.1% net for the second quarter, underperforming the S&P 500’s 10.9% return, the Russell 2000’s 8.5% gain, and the 15.5% return for the Russell Microcap. For the first half of 2025, Gate City returned 3.6% net, versus the S&P’s 6.2% return, the Russell 2000’s 1.8% drop, and the Russell Microcap’s 1.1% decline.
However, Gate City is doing much better on a long-term basis. The fund has returned 1,355% net cumulatively since its inception, outperforming the S&P 500’s 560.3% gain, the Russell 2000’s 262.1% return, and the Russell Microcap’s 248.4% rise.
Focusing on micro caps, Gate City builds its portfolio via in-depth fundamental analysis focused on potential risk/ reward and seeking a margin of safety.
When the central bank was no more
In their second-quarter letter to investors, which was obtained by Hedge Fund Alpha, the Gate City Capital team recalled the time when former President Andrew Jackson effectively eliminated the U.S. central bank — all to pay off the entire national debt, which he did to much widespread praise.
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
