Buckley Capital Partners returned 36.1% net of fees in the second quarter of 2026, lifting its year-to-date gain to 29.7% and its total return since inception to 1140.4%, founder and portfolio manager Zack Buckley wrote in the firm’s Q2 2026 letter to partners. The fund, which manages $195.0 million in North American small and mid-cap equities, was up approximately 8.4% in June alone, according to the firm’s announcement to investors. Below is the letter in full.
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| Buckley Capital Net¹ | iShares Russell 2000 Value ETF | iShares Russell 2000 | |
|---|---|---|---|
| Q2 2026 | 36.1% | 17.1% | 21.4% |
| 2026 YTD | 29.7% | 22.8% | 22.6% |
| Total returns since inception | 1140.4% | 356.3% | 413.5% |
| Annualized return | 14.6% | 8.6% | 9.2% |
¹The performance results herein are presented net of a 1% management fee and 20% performance fee. From January 1, 2008, through December 31, 2010, the results reflect a proprietary trading account managed by the principal of Buckley Capital. Performance from January 1, 2011, onward reflects the results of Buckley Capital Partners, L.P.
Introduction
The second quarter of 2026 was marked by strong, broad-based performance across the portfolio, with several of our largest positions contributing meaningfully to returns. As valuations and prospective returns shifted, we remained disciplined in recycling capital, trimming or exiting positions where our thesis had played out, or the risk-reward had become less attractive, and redeploying capital into businesses where we believe the market continues to underestimate normalized earnings power and intrinsic value.
In this letter, we discuss several investments that illustrate this process. We review successful seasoned positions, including Dave, Liquidia, and Basic-Fit; our decision to substantially reduce Root after reassessing the near-term industry outlook; and newer investments in Celsius and Light & Wonder, where we believe improving fundamentals, identifiable catalysts, and attractive valuations create compelling long-term opportunities.
Across the portfolio, we continue to find opportunities where the market is overly focused on near-term uncertainty while underappreciating long-term earnings power and value creation. We believe the current portfolio is among the strongest we have owned in recent years and is well positioned heading into the second half of 2026.
Dave Inc. (DAVE)
Dave has rallied over 100% from our average cost. While we believe Dave is a great business, the stock has become very expensive. It is now trading at the high end of its historical multiple range, and as such, we fully exited the position. While we continue to believe the business will do well, it will have to perform in line with our upside case for there to be meaningful returns going forward. This may be possible, but the risk-reward is not as attractive as other portfolio holdings.
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