Key Takeaways
- • Kerrisdale Partners returned +7% net in June 2026, driving year-to-date performance to +40% net, substantially outpacing the S&P 500's gains through mid-year.
- • The fund's 2026 trajectory represents exceptional performance relative to broader markets and positions Kerrisdale for its strongest full-year return since at least 2025, when the fund posted +26.1% net.
- • AI-themed long positions have been identified as key performance drivers for the fund's year-to-date outperformance, suggesting concentrated exposure to technology sector strength.
- • Kerrisdale maintained profitability for six consecutive months through June 2026, demonstrating consistent alpha generation across the first half of the calendar year.
- • Manager Sahm Adrangi's activist short fund has significantly outperformed the broader hedge fund industry, which averaged 7.23% through June 2026 year-to-date.
Summary
Kerrisdale Partners achieved a +7% net return in June 2026, extending the hedge fund's year-to-date performance to +40% net as of the end of that month. This June gain built upon a strong May performance of +5.8% net, which had lifted the fund to +30.1% year-to-date through May. The cumulative outperformance represents a significant alpha generation story, with Kerrisdale substantially ahead of broader equity market benchmarks during a robust first-half environment.
The fund's positioning in artificial intelligence-themed long investments has been central to its 2026 outperformance. According to communications reviewed by Hedge Fund Alpha, AI longs served as key performance drivers throughout the year's first five months and continued contributing to June's gains. This concentrated sector exposure has benefited from the technology sector's strength during the first half of 2026, allowing Sahm Adrangi's fund to capture both market appreciation and thematic momentum in the AI narrative.
Kerrisdale's 2026 performance trajectory represents exceptional execution relative to historical baselines and peer performance. The fund's +40% net return through June would likely exceed the +26.1% net return posted for the full year 2025, suggesting the fund is on pace for one of its strongest annual performances in at least a decade. The consistency of monthly gains—four winning months in the first five and six consecutive profitable months through June—indicates disciplined risk management and sustained portfolio execution rather than single-month volatility.
In industry context, Kerrisdale's performance significantly outpaces average hedge fund returns. The broader hedge fund composite index posted 7.23% year-to-date returns through June 2026, meaning Kerrisdale delivered roughly 32 percentage points of alpha relative to peer group averages during the first half. Other notable multistrategy performers, such as Millennium, reported 10.5% gains for the first six months of 2026, placing Kerrisdale substantially ahead of comparable multistrategy and activist-oriented hedge fund competitors.
The fund's positioning in artificial intelligence-themed long investments has been central to its 2026 outperformance. According to communications reviewed by Hedge Fund Alpha, AI longs served as key performance drivers throughout the year's first five months and continued contributing to June's gains. This concentrated sector exposure has benefited from the technology sector's strength during the first half of 2026, allowing Sahm Adrangi's fund to capture both market appreciation and thematic momentum in the AI narrative.
Kerrisdale's 2026 performance trajectory represents exceptional execution relative to historical baselines and peer performance. The fund's +40% net return through June would likely exceed the +26.1% net return posted for the full year 2025, suggesting the fund is on pace for one of its strongest annual performances in at least a decade. The consistency of monthly gains—four winning months in the first five and six consecutive profitable months through June—indicates disciplined risk management and sustained portfolio execution rather than single-month volatility.
In industry context, Kerrisdale's performance significantly outpaces average hedge fund returns. The broader hedge fund composite index posted 7.23% year-to-date returns through June 2026, meaning Kerrisdale delivered roughly 32 percentage points of alpha relative to peer group averages during the first half. Other notable multistrategy performers, such as Millennium, reported 10.5% gains for the first six months of 2026, placing Kerrisdale substantially ahead of comparable multistrategy and activist-oriented hedge fund competitors.
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