Palm Valley Capital Management has released its third-quarter 2026 investor letter for the Palm Valley Capital Fund. The fund gained 1.61% during the quarter, outperforming the S&P SmallCap 600 Index, which declined 7.93%, and the Morningstar Small Cap Total Return Index, which fell 5.60%. Treasury bills accounted for 75.5% of the fund’s assets at quarter-end, while its equity holdings returned 4.8%.
The letter examines a market in which small-cap stocks lagged their larger peers even as the S&P 500 approached its highs. The managers draw parallels between sharp stock-price swings in a rising market and conditions during the technology bubble. They also question whether policies aimed at preserving today’s wealth come at the expense of future prosperity, arguing that rising asset prices deepen economic disparities while shifting financial burdens to future generations. Citing federal debt exceeding $40 trillion, the managers frame the debate around how wealth and obligations are distributed across generations, alongside the familiar divide between rich and poor.
Rayonier Inc. (NYSE:RYN) is a land resources real estate investment trust, or REIT, focused on timberland management, timber production, and real estate development. The company manages forestland in the U.S. South and Northwest and seeks to increase its land portfolio’s value through sustainable forestry, property development, and land sales. On October 29, 2026, its shares closed at $19.14, an increase of 2.08% from the previous session, with a market capitalization of approximately $5.73 billion.
Here’s what Palm Valley Capital Management has to say about Rayonier Inc. (NYSE:RYN):
“While the stock of Rayonier, a leading timberland REIT, declined during the quarter, operating results exceeded our expectations. Results were particularly strong in the company’s Northwest Timber, Wood Products, and Real Estate segments. Rayonier continued to generate strong cash flow, which in addition to supporting its 5.6% dividend yield, funded significant share repurchases during the quarter. Despite solid operating results and cash flow, weakening lumber prices in August and September likely weighed on Rayonier’s share price. Rising interest rates also contributed to weaker investor sentiment towards housing-related stocks. With the stock trading at a meaningful discount to our estimated value of its timberland, we added to the position during the quarter.”
Rayonier Inc. (NYSE: RYN) announced on October 16, 2026, that its board approved a fourth-quarter cash dividend of $0.26 per common share, payable on December 31, 2026, to shareholders of record on December 17, 2026. The company also declared an equivalent distribution per operating partnership unit. Separately, it scheduled its third-quarter earnings release for November 4, 2026.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
