Upslope Capital Management, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Upslope aims to provide attractive, equity-like returns while reducing market risk and keeping low correlation with traditional equity strategies. The portfolio tailed in the speculative mania environment as investors broadly avoided boring, cash-flowing, non-AI stocks. The Fund returned -6.6% (net) in Q2 compared to +14.3% return for the S&P Midcap 400 ETF (MDY) and +10.3% gain for the HFRX Equity Hedge Index. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its Q2 2026 investor letter, Upslope Capital Management highlighted Jack Henry & Associates, Inc. (NASDAQ:JKHY). Jack Henry & Associates, Inc. (NASDAQ:JKHY) is a financial technology company that offers solutions and payment processing services for community banks and credit unions. On July 21, 2026, Jack Henry & Associates, Inc. (NASDAQ:JKHY) closed at $148.90 per share, reflecting a market capitalization of $10.58 billion. Jack Henry & Associates, Inc. (NASDAQ:JKHY) posted a one-month return of 16.27%, while its shares lost 17.52% over the past 52 weeks.
Upslope Capital Management stated the following regarding Jack Henry & Associates, Inc. (NASDAQ:JKHY) in its Q2 2026 investor update:
“The Fund also exited Jack Henry & Associates, Inc. (NASDAQ:JKHY), fintech business focused on core processing and payments for regional banks). This was disappointing, as the exit was largely due to risk management. Fundamentals remained solid, but shares were hit hard by AI worries. “Proving” the market wrong about these worries will simply take time (a lot of it) and, possibly, additional valuation compression. JKHY was not the only holding with this perceived risk and exiting was aimed at reducing broader exposure to a manageable level.”
Jack Henry & Associates, Inc. (NASDAQ:JKHY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 38 hedge fund portfolios held Jack Henry & Associates, Inc. (NASDAQ:JKHY) at the end of the first quarter, compared to 37 in the previous quarter. While we acknowledge the risk and potential of Jack Henry & Associates, Inc. (NASDAQ:JKHY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Jack Henry & Associates, Inc. (NASDAQ:JKHY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Jack Henry & Associates, Inc. (NASDAQ:JKHY) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
