Apis Flagship Fund Falls 12% In July Amid AI Unwind YTD Return Holds At 30.5%

(MENAFN- ValueWalk) The Apis Flagship Fund returned -11.7% net in July 2026, giving back roughly two months of gains in a single month. The year-to-date return remains +30.5%, according to a letter to investors reviewed by HedgeFundAlpha. By contrast, the MSCI ACWI Index gained +0.1% in July and is up +11.3% year to date.

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Apis Capital Advisors runs the flagship as a global equity portfolio with long/short and long-only sleeves, built around small- and medium-capitalization companies. The fund finished 2025 up 55% and crossed the $1 billion asset mark late in the year. Its 2026 run had reached 21.5% through February before a spring surge that peaked with back-to-back monthly gains of +19.35% in April and +8.40% in May.

Also see our profile of Daniel Barker and Eric Almeraz of Apis Capital in the Q2 2024 issue of Hidden Value Stocks - where they highlight two Asian smidcap stocks.

One of the most difficult months in 22 years

Management described July as one of the most difficult months in their 22 years at Apis Capital, citing an extreme technical“unwind.” Positions that had performed best year to date fell the hardest, while poor performers recovered. AI-related names suffered most, but selling spread indiscriminately across their book. The hedge fund reduced exposure modestly during the month and signaled it would continue to do so if conditions persist.

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