Alphyn Capital Management, an investment management firm, released its second-quarter 2026 investor letter. The letter can be downloaded here. The fund’s master account returned 0.6% net in the quarter compared to 15.2% for the S&P500. As of June 30, 2026, the top ten positions comprised approximately 72% of the portfolio, and the portfolio held approximately 9% in cash and short-term treasuries. The portfolio experienced minimal gains despite a strong index performance, leading to disappointment in longer-term results. The author acknowledged prior management flaws, notably holding onto positions after their initial rationale changed. As a correction, every position now has a clear thesis, expected return, and exit strategy based on changes in metrics. The letter concluded that while early-stage analysis can be misleading, profitability consistency can identify successful long-term investments more effectively. The goal for the upcoming year is to concentrate efforts on strong underwritings and adapt quickly to changes in facts, guided by a disciplined decision-making process. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its second-quarter 2026 investor letter, Alphyn Capital Management highlighted Alphabet Inc. (NASDAQ:GOOG) as a leading performance contributor. Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services, including online search and advertising, cloud solutions, and artificial intelligence. On September 08, 2026, Alphabet Inc. (NASDAQ:GOOG) closed at $335.38 per share, reflecting a market capitalization of $4.12 trillion. Alphabet Inc. (NASDAQ:GOOG) posted a one-month return of -2.04%, while its shares gained 40.00% over the past 52 weeks.
Alphyn Capital Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2026 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) was the largest contributor this quarter. Operating results were strong: first-quarter revenue grew more than 20 percent, Google Cloud grew over 60 percent with its backlog nearly doubling in the quarter, and the vertically integrated AI stack continued to show up as a tailwind to the core rather than a threat. This stack spans proprietary infrastructure, leading models, and scaled distribution through Search and Android. The most notable development came in June, when Alphabet raised roughly $85 billion of fresh equity and lifted its 2026 capital expenditure guidance toward $180 to $190 billion. The size and suddenness of the raise pressured the shares, though Berkshire Hathaway’s $10 billion participation read as a vote of confidence in the long-term AI economics. I trimmed a portion of the position into strength during the quarter, but it remains a core holding. The central question I am now watching is the return on this extraordinary level of reinvestment.”
