Q2 2026 Shareholder Letter - Uncertainty

Dear Shareholders, 

If there is one constant in investing in 2026, it is uncertainty. 

Every day seems to bring a new headline capable of moving markets. One week we face geopolitical conflict, soaring oil prices, and expectations of a more accommodative Federal Reserve; the next, tensions ease, oil prices fall, and investors begin anticipating a more hawkish central bank. Add to that ongoing discussions surrounding artificial intelligence, elevated market valuations, a K-shaped economy, record levels of margin debt, and countless other macroeconomic concerns, and it's easy to understand why many investors feel anxious. 

While uncertainty is unavoidable, how we respond to it ultimately determines our long-term results. 

Investors generally have several ways to navigate uncertain markets: 

1. Move to cash. This approach is often driven by fear rather than opportunity. In recent years, I have watched experienced professionals move heavily into cash at two of the worst possible moments: the bottom of the 2020 COVID market decline and the depths of the 2025 tariff-driven selloff. While those periods were understandably frightening, they ultimately proved to be exceptional buying opportunities. 

2. Hedge your portfolio. Remaining invested while purchasing downside protection can reduce risk, but every hedge carries a cost. Like an insurance policy, it provides protection when needed but reduces returns over time if the feared event never materializes. 

3. Attempt to time the market. This strategy depends on accurately predicting short-term market movements—something history has shown to be extraordinarily difficult to do consistently. 

4. Own outstanding businesses for the long term. By investing in high-quality companies with durable competitive advantages, strong management teams, and attractive long-term prospects, patient investors can remain invested for the long-term to overcome or even ignore short-term market turbulence. 

If you've followed me for any length of time, you already know I strongly favor the fourth approach. 

There are certainly times when holding additional cash or implementing selective hedges can be appropriate. However, I continue to believe that the best long-term strategy is owning exceptional businesses purchased at reasonable—ideally attractive—prices and allowing time to work in our favor. 

Today's market presents no shortage of challenges. Elevated valuations coexist with geopolitical tensions, wars, supply chain disruptions, energy volatility, and rapid technological change. These conditions naturally tempt investors to chase trends or attempt to predict the market's next move. 

Our philosophy remains unchanged. 

Since launching The Stewardship Fund three and a half years ago, the Fund has generated cumulative returns of more than 80% (See chart on final page). That may not be as exciting as the eye-catching gains occasionally produced by speculative investments or leveraged portfolios, but I firmly believe that successful investing is built on consistency, patience, and disciplined decision-making rather than excitement. 

Jeff Bezos once asked Warren Buffett why more people don't simply copy his investment strategy. Buffett replied, "My approach is a get-rich-slow scheme, and people don't like that." Bezos added, "If you can think in terms of seven years instead of three years, and you can defer gratification and think long term, that will give you a head start against all of your competitors." 

That philosophy perfectly captures how I strive to manage The Stewardship Fund. 

Rather than reacting to daily headlines, my focus remains on where our businesses are likely to be three, five, and ten years from now. Every great long-term investor I admire shares this mindset, and it remains the foundation of our investment process. 

Portfolio Update 

I continue to monitor and research the companies in our portfolio as they grow both revenue and earnings while strengthening their competitive positions. 

The portfolio remains relatively concentrated (see chart of final page), and I am comfortable with that. Concentration is not something I seek for its own sake; rather, it is the natural result of having the highest conviction in a limited number of exceptional businesses. 

Google has become our largest holding primarily because of its outstanding business performance and corresponding appreciation in its share price. I continuously monitor the fundamentals of every company we own, but I do not sell simply because a position has grown to represent a larger percentage of the portfolio. 

Instead, I generally sell for one of three reasons: 

1. The investment thesis has materially deteriorated. 

2. A meaningfully better opportunity becomes available. 

3. The company's valuation becomes so excessive that holding cash presents a more attractive risk-adjusted alternative. 

Whenever possible, my preference is to continue owning outstanding businesses for many years and participate in the wealth they create over time. 

As Warren Buffett famously said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." I believe that principle applies not only to purchasing great businesses but also to holding them patiently as they continue to grow. 

Conclusion 

I fully expect volatility and uncertainty to remain constant features of investing in the years ahead. 

Rather than attempting to predict every market movement, my objective is simple: continue owning exceptional businesses, remain disciplined during periods of uncertainty, and capitalize on opportunities whenever the market inevitably misprices great companies. 

Thank you for your continued trust, confidence, and support. It is a privilege to steward your capital, and I remain committed to investing alongside you with the same long-term perspective that has guided us since the fund's inception. 

God Bless, 

Bobby Boyd 

CEO 

The Stewardship Fund

Robert@thestewardshipfund.net  

The Stewardship Fund

This material is for informational purposes only and does not constitute investment, legal, or tax advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Past performance is not indicative of future results.