Overview
- Argosy Investors published its Q1 2026 investor letter on Monday, June 8, 2026, calling the market an AI-driven capex boom and warning that gains for suppliers and users may not hold if supply catches up with demand.
- The firm sold its GoDaddy stake after concluding AI tools make website creation easier and trimmed high‑fliers such as Allient, Wayfair and Celsius to realize gains as their prices ran up.
- Argosy redeployed capital into names it views as more durable by adding to FirstService, CDW and Floor & Decor and swapping Coca‑Cola FEMSA holdings into FMX for steady Coca‑Cola exposure and convenience‑store growth.
- The fund exited cyclical homebuilders Hovnanian and Dream Finders Homes during the quarter and said it will wait for a clearer macro re-entry point as housing conditions weaken.
- Argosy stressed valuation discipline and flagged share buybacks and dividends as likely ways some companies will return cash, and its rotation highlights a practical risk: AI-driven capex can lift near‑term earnings but may invert if supply responses compress margins.