Discovery Capital Management is off to another strong start.
The Discovery Global Opportunity Fund rose 2.6 percent in February and is now up 10.3 percent for 2026. This follows gains of 36.8 percent in 2025, 52 percent in 2024, and 48 percent in 2023.
“Our core long themes in emerging markets continued to add positive performance across all the asset classes, while our view of dispersion in our AI/tech theme also contributed from the long and short side,” the hedge fund firm says in its February monthly client letter, obtained by Institutional Investor.
Discovery, headed by Tiger Cub Robert Citrone, is a combination macro and fundamental global equities fund that invests heavily in both developed and emerging markets.
In February, currencies kicked in 2 percent to gross gains and equities added 1.6 percent. Credit and rates detracted from performance. So far in 2026, equities have led the way, contributing 6.4 percent to gross gains, with currencies right behind, adding 6.1 percent. Thematically, Latin America added most to performance both in February and year-to-date. Over the first two months, TMT and Nigeria were the next-biggest contributors to performance.
Financials have been the biggest detractor from performance this year. Gaming, advertising, India, and chemicals have subtracted to a lesser extent.
Of course, the big question is how the fund has maneuvered its portfolio over the past week or so, since the U.S. launched its war against Iran.
The letter, dated March 9, says only: “We are monitoring the Iran war, which we see as a short-term disruptor to our long themes, but recognize that the longevity of the war and impact of higher oil prices will be key to our medium- and long-term assessment. Given the current uncertainty, the key is to remain liquid and trade tactically until there is greater clarity.”
In a February 17 interview with CNBC, Citrone said he was short U.S. stocks mostly because he thinks the U.S. market will underperform the rest of the global markets. “I am short the U.S., and I’m long global markets,” he noted.
He stressed in the interview that over the past year, gains in dollar-based assets were weakest when compared with 19 other markets around the world, according to Business Insider. Citrone said there are several reasons the U.S. markets will continue to lag others, asserting that most global investors are “way overweight” U.S.-based assets. “Most people are going to move some money from the U.S. elsewhere,” he said.
He also believes emerging markets look relatively undervalued and noted that U.S. assets trade at about a 40 percent premium relative to other assets. And Citrone was concerned about general AI uncertainty.
On the long side, in the fourth quarter, Discovery established a new large position in Amkor Technology, a semiconductor product packaging and test services provider, which instantly became the firm ‘s largest U.S.-listed common stock long position.
