Blue Tower Gains 19% in Q2 2026 With Major Bets On These 3 Financials; Holds Steady At 19% CAGR Since 2014

Blue Tower Asset Management‘s Global Value strategy has returned 19.38% annualized net of fees since its January 2014 inception, nearly double the 10.36% annualized return of the MSCI ACWI over the same stretch. The fund kept up that pace in the second quarter of 2026, gaining 18.91% net (19.24% gross) and lifting its 2026 year-to-date return to 20.84% net (21.49% gross), led by top holding Enova International (NYSE:ENVA) and one other financial. in total these two financials make up 47% of the portfolio, with another financial being the third largest holding at 8.64% of the fund. Portfolio manager Andrew Oskoui, CFA, used the firm’s Q2 letter to lay out its case for energy stocks as more than just a hedge against the 2026 Iran War. Below is the letter in full.

Read more hedge fund letters here

Since inception: January 2, 2014. Data as of June 30, 2026. Source: Blue Tower Asset Management Q2 2026 factsheet.

Also see

• December 2016 Edition Of Hidden Value Stocks featuring BlueTower 

• Blue Tower Up 24% In 2017 – Long Joban Kaihatsu

I am happy to report another excellent quarter of performance for our strategy. In Q2, we gained 18.91% net of fees (19.24% gross), bringing the 2026 YTD gain to 20.84% net (21.49% gross). This performance was driven by large gains in our holding in Enova International (NYSE:ENVA) [Editor’s note: This is a long-time holding of the hedge fund that profiled Blue Tower’s bullish thesis on the stock ten years ago. See the above link for more details.]. Although it was the biggest contributor to Q2’s performance, Enova was the largest detractor to performance in Q1. Until Enova’s merger with Grasshopper Bank receives full regulatory approval and is completed, we should expect elevated volatility in the company’s share price. We continue to believe that the merger with Grasshopper will be transformative for Enova, opening many new markets for the company and reducing its funding costs.

In Q1, we built up positions in Petrobras and SM Energy, which have been a drag on performance. The 2026 Iran War has led to less of a disruption to commodity markets so far than many analysts expected at its onset. The main idea behind this investment in energy stocks was to act as a counter-weight to the damage that would occur to the rest of our portfolio from an extreme increase in oil prices. In a scenario where oil prices reached extreme levels above $150/barrel, the gains in those energy stocks would offset losses in the rest of the portfolio.

Also see: Update From Bluetower’s Andrew Oskoui On Nicholas Financial And EZCORP

In the last week, full-scale fighting has resumed as both the United States and Iran abandoned the ceasefire reached after the signing of the memorandum of understanding on June 17, 2026.

In this letter I will give a brief overview of the major factors that allowed the price of oil to reverse most of its initial price increase. Many of these buffers that protected world markets are nearing exhaustion, and the shortages that failed to occur in the first phase of the 2026 war may still come to pass. The price of Brent crude has increased by over 15% in the last week.