Key Takeaways
- • Half Moon Capital Partners delivered 12.9% net returns in Q2 2025, outperforming the S&P 500 (10.9%), Russell 2000 (8.5%), and HFRI Hedge Fund Index (7.9%), with 97.7% average net exposure during the quarter.
- • The fund's long book generated 12.4% gross returns contributing 16% to overall performance, while the short book posted -9.1% gross returns, detracting 2.9% from gross attribution on a dollar basis.
- • Primoris Services Corp (NYSE: PRIM) and Lyft Inc (NASDAQ: LYFT) were among Half Moon's best-performing long positions in Q2; the fund also held positions in Roku, Reddit, and Daktronics as top gainers.
- • Half Moon maintained selective industry hedges to offset temporary selling pressure on certain positions and actively managed shorts during April market volatility, covering positions opportunistically as conditions evolved.
- • The fund, founded by Eric DeLamarter in 2011, operates as a concentrated, research-intensive investment manager focused on U.S. equities with a two-to-ten person team structure.
Summary
Half Moon Capital Partners achieved strong second-quarter performance in 2025, posting net gains of 12.9% and significantly outpacing major equity benchmarks and hedge fund indices. The fund's 97.7% average net exposure during Q2 reflected an aggressive positioning stance that capitalized on market opportunities while managing downside risk through a balanced long-short strategy.
The fund's performance was primarily driven by its long portfolio, which generated 12.4% gross returns and contributed 16% to overall performance. According to the second-quarter letter to investors obtained by Hedge Fund Alpha, the firm grossed-up certain positions during April market turmoil, positioning the portfolio to benefit from the subsequent recovery. Top-performing long positions included Primoris Services Corp, a provider of engineering and construction services in the energy and infrastructure sectors; Lyft Inc, the ride-sharing platform; and holdings in Roku, Reddit, and Daktronics, which collectively drove significant long-side gains.
The short book presented a headwind during the quarter, generating -9.1% gross returns that subtracted 2.9% from performance on a dollar-contribution basis. Half Moon addressed this weakness through tactical execution, employing selective industry hedges to offset temporary selling pressure on specific positions. During the April volatility, the fund actively pressed certain shorts, then covered those positions as market conditions unfolded, demonstrating active risk management and opportunistic trading discipline.
Eric DeLamarter, who founded Half Moon Capital in 2011, leads the concentrated, research-intensive firm that focuses exclusively on U.S. equities. The fund's relatively small team structure—operating with 2-10 employees—reflects a boutique approach emphasizing deep fundamental analysis and high conviction positions rather than broad diversification.
The fund's performance was primarily driven by its long portfolio, which generated 12.4% gross returns and contributed 16% to overall performance. According to the second-quarter letter to investors obtained by Hedge Fund Alpha, the firm grossed-up certain positions during April market turmoil, positioning the portfolio to benefit from the subsequent recovery. Top-performing long positions included Primoris Services Corp, a provider of engineering and construction services in the energy and infrastructure sectors; Lyft Inc, the ride-sharing platform; and holdings in Roku, Reddit, and Daktronics, which collectively drove significant long-side gains.
The short book presented a headwind during the quarter, generating -9.1% gross returns that subtracted 2.9% from performance on a dollar-contribution basis. Half Moon addressed this weakness through tactical execution, employing selective industry hedges to offset temporary selling pressure on specific positions. During the April volatility, the fund actively pressed certain shorts, then covered those positions as market conditions unfolded, demonstrating active risk management and opportunistic trading discipline.
Eric DeLamarter, who founded Half Moon Capital in 2011, leads the concentrated, research-intensive firm that focuses exclusively on U.S. equities. The fund's relatively small team structure—operating with 2-10 employees—reflects a boutique approach emphasizing deep fundamental analysis and high conviction positions rather than broad diversification.
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