Overview
- Kingdom Capital Advisors, which released its Q1 2026 letter Wednesday, reported an 8.01% net gain that beat the S&P 500, Nasdaq 100, and Russell 2000 for the quarter.
- The firm said a mix of special situations and deep-value stocks drove results by focusing on clear catalysts and steering clear of the slide in AI-focused software names.
- Position updates featured a constructive stance on United Natural Foods with a near 50% rebound, early share repurchases, and a free-cash-flow yield above 10%, plus a new stake in Alliance Entertainment built after an earnings selloff and supported by heavy insider ownership and exclusive distribution deals.
- KCA kept a large holding in Net Lease Office Properties as it sells suburban office buildings, saying the remaining portfolio still offers more than 20% upside despite a below-expectation sale of its largest asset.
- The letter also cited realized gains from shorter-duration bets, including Eastman Kodak on improving profits and balance sheet strength, Ziff Davis after a divestiture, and a near 50% one-month return in SunOpta following a $6.50-per-share buyout.