Sirmium Capital recently released its quarterly Q3 2026 investor letter. A copy of the letter can be downloaded here. The letter examined a highly concentrated, AI-driven market in which a narrow group of technology and infrastructure-related stocks supported headline indexes while many other businesses remained substantially below their previous highs. Sirmium reported an average client return of -2.42% for the quarter, compared with a 2.38% gain for the S&P 500, but argued that short-term performance should be assessed in the context of its long-term, fundamentals-based value-investing process. The firm highlighted that the ten largest S&P 500 constituents represented approximately 40% of the index, while rising AI infrastructure spending raised questions about financing risks: capital expenditures at four major cloud infrastructure builders increased 75% over the year to June, compared with 34% growth in operating cash flow, and the three largest hyperscalers added roughly $207 billion in combined long-term debt. Sirmium believes AI demand remains genuine, but cautions that aggressive borrowing and uncertain infrastructure economics could expose lenders and highly leveraged businesses to losses even if the technology ultimately transforms the economy. Looking ahead, the firm sees potential opportunities in undervalued, durable businesses as market concentration and emotional investing create mispricing, emphasizing independent analysis, capable management, competitive advantages, and the discipline to invest over years rather than quarters. During Q3, it increased several existing positions and initiated small positions in two additional businesses, reflecting its willingness to use market weakness to pursue long-term value. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Sirmium Capital highlighted stocks like Kaspi.kz JSC (NASDAQ:KSPI). Kaspi.kz JSC (NASDAQ:KSPI) operates a digital platform in Kazakhstan that combines payments, e-commerce, and banking services. Kaspi.kz JSC (NASDAQ:KSPI) shares returned -2.42% over the past month and traded between $68.59 and $109.94 over the past 52 weeks. On October 12, 2026, Kaspi.kz JSC (NASDAQ:KSPI) closed at approximately $96.07 per share, with a market capitalization of $18.07 billion.Sirmium Capital stated the following regarding Kaspi.kz JSC (NASDAQ:KSPI) in its Q3 2026 investor letter:
“Kaspi.kz JSC (NASDAQ:KSPI) – Kaspi is Kazakhstan’s dominant super app, combining payments, an e-commerce marketplace, and core banking into a single platform that touches the vast majority of the country’s digitally active population. The business generates extraordinary returns on equity, and it’s benefiting from the same digitization and financial inclusion tailwind that made names like Nubank and Grab compelling early on, just a few years earlier in the cycle and in a market most US investors haven’t looked at closely. This one came to us through conversations in our own investing circle, and we’re starting small while we do more work on it.”
Source: finance.yahoo.com
