Overview
- The London Company published its Q1 2026 investor letters in June reporting the Large Cap strategy returned 2.6% gross while the Small‑Mid Cap strategy fell 3.4%, producing opposite results versus their benchmarks.
- The firm attributes the market reversal to the March Iran conflict and higher crude that raised inflation concerns and shifted the Federal Reserve outlook toward higher rates, creating sharp sector dispersion with Energy up strongly and Tech under pressure.
- Top contributors cited included Entegris and FedEx for improving semiconductor demand and better-than-expected logistics results, while Alphabet and Equitable were named detractors with EQH sold after a soft stop-loss review and absent insider buying.
- Portfolio moves highlighted in the letters included additions and increases such as Martin Marietta and ACI Worldwide, and exits like Trex driven by reassessed competitive risk, all executed under explicit risk controls and conviction signals.
- The firm frames the setback as a pause in a multi-year cycle, noting its quality bias, high active share and downside resilience should help navigate further rotation toward infrastructure and commodity-linked winners.