Buckley Capital Exits Dave Inc. Amidst Valuation Concerns

Buckley Capital Advisors announced impressive results for the second quarter of 2026, with a net return of 36.0% and a year-to-date return of 29.7%. This performance surpassed benchmarks like the iShares Russell 2000 Value and iShares Russell 2000. The investment firm maintained a disciplined approach by divesting or reducing positions where investment theses were complete or risk-reward profiles diminished.

Capital was strategically reallocated to companies demonstrating enhanced fundamentals, clear catalysts, and appealing valuations. Buckley Capital continues to prioritize small and mid-cap companies that are often misunderstood but possess significant earnings potential. They believe their current portfolio represents one of the strongest in recent years.

A significant action highlighted was the complete exit from their position in Dave Inc. (NASDAQ:DAVE). While acknowledging Dave Inc. as a strong business that provides vital financial services to consumers living paycheck to paycheck, Buckley Capital noted that the stock had become significantly overvalued. The firm cited that Dave Inc. was trading at the high end of its historical multiple range, making the risk-reward balance less attractive compared to other holdings.

The original investment thesis for Dave Inc. was based on its predictable business model, accessible financial products, and effective management team. Buckley Capital had initially invested in October 2025 when they believed Dave Inc. was undervalued, trading at approximately 11 times their 2026 earnings estimates, with earnings growth exceeding 30% annually. They anticipated that market expectations for the company's performance would rise.