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 Lifecore Biomedical, Inc. (NASDAQ:LFCR). Lifecore Biomedical, Inc. (NASDAQ:LFCR) is an integrated contract development and manufacturing organization that engages in the aseptic fill and finish of formulations and highly viscous sterile injectable pharmaceutical drug and medical device products.
On August 14, 2026, Lifecore Biomedical, Inc. (NASDAQ:LFCR) closed at $4.72 per share, reflecting a market capitalization of $178.67 million. Lifecore Biomedical, Inc. (NASDAQ:LFCR) posted a one-month return of -3.41%, while its shares lost 38.78% over the past 52 weeks. Greenhaven Road Capital stated the following regarding Lifecore Biomedical, Inc. (NASDAQ:LFCR) in its Q2 2026 investor letter: "Another top-five holding is Lifecore Biomedical, Inc. (NASDAQ:LFCR).
The entire thesis is that they can sell their excess manufacturing capacity. The company has announced seven new customers in the past nine months, and while the customers are not named specifically, breadcrumbs indicate at least two large customers. For a relatively new CEO and his revamped sales team, this is tangible progress.
Public investors do not appear to fully value Lifecore's contract wins because lengthy FDA approval processes delay the associated revenue. Yet those approvals also make the contracts exceptionally sticky, a characteristic private investors are typically more willing to value. I continue to believe the shares will trade higher or the company will be sold.
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