Hawk Ridge Capital returned 7.4% net for the second quarter, outperforming the S&P 400’s 6.7% return. Year to date, the fund is up 6.3% net. The fund’s long book added 14.5% gross to its second-quarter performance, while its short holdings subtracted 5.2% gross. Hawk Ridge’s aggregate alpha exposure was 123%, including 99% alpha in its longs and 24% alpha for its shorts.
In his Q2 letter to investors, which was obtained by Hedge Fund Alpha, David Brown reported that their quarterly outperformance mainly stemmed from their aerospace holdings. He made a number of opportunistic trades during the tariff-related turmoil during the quarter.
On the other hand, Hawk Ridge’s health-care positions remained weak, racking up most of the fund’s Q2 losses.
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