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 Burford Capital Limited (NYSE:BUR). Burford Capital Limited (NYSE:BUR) is a leading legal finance company that offers litigation finance, asset recovery and asset management services.
On August 14, 2026, Burford Capital Limited (NYSE:BUR) closed at $4.37 per share, reflecting a market capitalization of $959.58 million. Burford Capital Limited (NYSE:BUR) posted a one‑month return of 8.71%, while its shares lost 67.89% over the past 52 weeks." Greenhaven Road Capital stated the following regarding Burford Capital Limited (NYSE:BUR) in its Q2 2026 investor letter: "Burford Capital Limited (NYSE:BUR) is the 800-pound gorilla of litigation finance. It sees the most cases and has the best settlement data, giving it an advantage in selecting and funding cases profitably.
More than 285 funded cases have concluded; 90% ended in a win or profitable settlement. Those investments produced an 82% return on invested capital over a weighted average life of 2.6 years, resulting in a 25% IRR. As outlined in previous letters and the presentation sent last quarter, Burford has invested more than $150M in price-fixing cases involving proteins—chicken, beef, turkey, and pork.
For much of that capital, Burford retains all of the upside rather than sharing it with a client, and it controls when the cases settle. Unlike the Argentina case, the defendants are very large companies, including Tyson Foods (TSN), Pilgrim's Pride (PPC), Koch Foods, and Cargill. Combined, they have already spent billions settling some of these antitrust claims.
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