Deep Sail Capital Partners, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund significantly outperformed both of its benchmarks, the Russell 2000 Mid Cap Growth Index and the Russell 2000 Index, returning 41.6% net of fees while averaging 88% net long exposure. YTD, the fund returned 16.5% net of fees. long portfolio significantly outperformed both benchmarks, while the short portfolio was mixed in the quarter. The letter states that there was a notable performance push in Q1, which was reflected in Q2, driven by both the Iran War and idiosyncratic impacts on positions in the fund. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Deep Sail Capital Partners highlighted Celestica Inc. (NYSE:CLS). Celestica Inc. (NYSE:CLS) is a leading technology and electronic manufacturing services company that offers supply chain solutions across multiple countries. On July 22, 2026, Celestica Inc. (NYSE:CLS) closed at $335.50 per share, reflecting a market capitalization of $38.57 billion. Celestica Inc. (NYSE:CLS) posted a one-month return of -7.17%, while its shares gained 104.60% over the past 52 weeks.
Deep Sail Capital Partners stated the following regarding Celestica Inc. (NYSE:CLS) in its Q2 2026 investor update:
“Celestica Inc. (NYSE:CLS) has transitioned from its legacy roots as an IBM captive manufacturer to become a design and technology integration leader within the AI and cloud infrastructure space. Celestica was founded in 1994 as a subsidiary of IBM Canada. It was subsequently acquired by PE, and then IPOed in the late 1990s. The company’s strategy from there was an acquisition model for the next two decades, acquiring various electronics and computer peripherals manufacturing and supply companies, highly tied to major OEMs like IBM, Avaya, and Lucent. At the beginning of the AI boom, the company found itself incredibly well positioned to provide specialized design, operational, and engineering services to large technology companies looking to build data centers or associated integrated rack systems.
The business segments of Celestica are split into two highly specialized operational segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS). Within the CCS segment, the company serves enterprise AI companies and the hyperscalers, including Google, Meta, Dell, HPE, IBM, Juniper Networks, and Oracle Corporation, among others. Within the ATS segment, Celestica supports highly complex capital equipment, aerospace, and defense programs for Tier-1 customers such as Applied Materials, Honeywell, Lam Research, and Raytheon…” (Click here to read the full text)
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