Hayden Capital, an investment management firm, released its second-quarter 2026 investment letter. The letter can be downloaded here. In the second quarter, the portfolio gained 6.9%, compared to the S&P 500's 15.2%. Overall, approximately 34% of the portfolio is in Asia, 43% in North America, and the rest spread across other regions. Hayden Capital remains guided by a strategy focused on high-quality franchises with stable earnings power, continuing to invest despite this year's challenging results. Their largest investments are experiencing over 40% revenue growth yet are trading at similar valuations to the broader market, indicating potential for future outperformance. The recent market corrections in AI investments have prompted a healthier perspective among investors, emphasizing the importance of strong business fundamentals. Companies are leaning towards partnerships with AI firms rather than outright replacements, ensuring better access to data and operational efficiency. Six months into the "SaaS-pocalypse," software incumbents remain resilient despite initial fears of disruption. While AI is indeed transformative, the anticipated rapid changes in markets have not materialized as quickly as expected. Also, check the fund's top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, Hayden Capital highlighted PDD Holdings Inc. (NASDAQ:PDD). PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group that owns and operates Pinduoduo and Temu platforms. On August 27, 2026, PDD Holdings Inc. (NASDAQ:PDD) closed at $84.69 per share. Over the past month, PDD Holdings Inc. (NASDAQ:PDD) returned 2.69%, while its shares have declined 28.31% in the last 52 weeks. PDD Holdings Inc. (NASDAQ:PDD) has a market capitalization of $120.55 billion.
Hayden Capital stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q2 2026 investor letter:
"PDD Holdings Inc. (NASDAQ:PDD): Four years ago, China was still in the middle of its "zero-covid" policy, with city-wide lock-downs. US-China tensions were running high with many US institutions dumping their Chinese investments, and China's economic health remained highly uncertain.
It was against this background, that we originally invested in Pinduoduo in 2022. I believed the market was misunderstanding the company and the operating leverage inherent in the model.

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