Michigan-based investment advisor Cedar Grove Capital Management recently released its third-quarter 2026 investor letter, covering a quarter investors probably won’t be framing for the office wall. Its Multi-Strategy Composite declined 12.7%, trailing the Russell 2000’s 7.2% decline, the Russell Microcap’s 7.4% drop, and the S&P 500’s 2.4% gain. Since its January 14, 2026 inception, the composite has fallen 26.2%, compared with respective benchmark gains of 7.9%, 10.6%, and 12.4%. Those results leave the firm with considerable ground to recover.
According to Cedar Grove, the disappointing stock performance contrasted with solid underlying business results, with some holdings beating expectations only to see their shares fall anyway. Apparently, delivering good results did not guarantee the market would send a thank-you note. A broader sell-off and a 10-year U.S. Treasury yield above 5% added pressure, raising borrowing costs and making investors more demanding about valuations. Against that backdrop, the firm is targeting businesses it believes can withstand a recession, supported by favorable long-term trends and strong balance sheets. The strategy centers on companies equipped to handle expensive financing and a tougher economy, although translating that resilience into stronger investment returns remains the challenge.
Readers can also explore the firm’s top five holdings for a closer look at its leading portfolio positions in 2026.
You can download a copy of Cedar Grove Capital Management’s Q3 2026 investor letter here.
