Black Bear Ups Exposure In High Yield Credit. Full Q2 letter.

Black Bear Value Partners’ commentary for the second quarter ended June 30, 2026.

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“Those are my principles. If you don’t like them…well, I have others.” – Groucho Marx

To My Partners and Friends:

• Black Bear Value Fund, LP (the “Fund”) returned -3.6% in June and +1.5% YTD.
• The S&P 500 returned -1.0% in June and +10.2% YTD.
• The HFRI Index returned +0.5% June and +7.1% YTD.
• We do not seek to mimic the returns of the S&P 500 and there will be variances in our performance.

Note: Additional historical performance can be found on our tear-sheet.

After several disappointing years, I’d be lying if I said I haven’t thought about the Groucho Marx quote more than once. It’s tempting after a stretch like ours to reinvent yourself—to chase what’s working, rewrite your investment philosophy, or convince yourself that discipline is overrated. That won’t be this letter.