Greenhaven Road Capital, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The fund achieved an approximate 11% net return in the second quarter, indicating progress from the first quarter.
Key changes to the portfolio will include lower concentration and increased investments with near-term catalysts, alongside a proactive stance on profit-taking. The focus will remain on owning strong businesses and conducting research that challenges consensus views, as several major investments are poised for significant events within the year. Despite declines in market multiples, underlying businesses continue to grow, suggesting a favorable positioning for returns.
Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026. In its Q2 2026 investor letter, Greenhaven Road Capital highlighted Cellebrite DI Ltd. (NASDAQ:CLBT). Headquartered in Petah Tikva, Israel, Cellebrite DI Ltd. (NASDAQ:CLBT) is a digital forensics company that offers DI suite of solutions to law enforcement, military, and other customers.
On August 17, 2026, Cellebrite DI Ltd. (NASDAQ:CLBT) closed at $10.44 per share, reflecting a market capitalization of $2.62 billion. Cellebrite DI Ltd. (NASDAQ:CLBT) posted a one‑month return of ‑29.22%, while its shares lost 33.92% over the past 52 weeks. Greenhaven Road Capital stated the following regarding Cellebrite DI Ltd. (NASDAQ:CLBT) in its Q2 2026 investor letter: "Cellebrite DI Ltd. (NASDAQ:CLBT): Keeping with the theme of "swift and strong," Morgan Stanley recently came up with 10 potential moats a software company could have for investors to ponder as they consider investing in the sector.
I could make the argument that Cellebrite has virtually all of these moats. However, the market has labeled Cellebrite an AI loser. Investors fear that AI will replace software and that tools such as Anthropic's Mythos will help Google and Apple harden their devices, making data extraction more difficult.
The share price has recovered from its lows but was still down approximately 20% year to date at quarter-end. Our non-consensus view is that AI will ultimately benefit Cellebrite. Management agrees and has been making the case.
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