Greystone Capital Management, an investment management company, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. During Q2 2026, Greystone Capital’s median account return was +7.2%, trailing behind S&P 500 (+15.2%) and Russell 2000 (+21.5%). Year-to-date returns were +8.6%, compared to +10.2% and +22.5% for the respective indices. The firm’s performance is not tied to indices, as they do not own the index-driving companies. The letter emphasizes that Greystone’s strategy focuses on business fundamentals rather than chasing index-driven gains, particularly avoiding the current AI-driven market boom due to valuation risks. The investment strategy is based on recognizing opportunities amid market neglect rather than popularity, and the firm remains open to AI investments at appropriate valuations. Historically, the firm has outperformed with a cumulative +222.0% return since inception, compared to relevant indices, reflecting a commitment to fundamental business growth over time. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Greystone Capital Management highlighted APi Group Corporation (NYSE:APG). APi Group Corporation (NYSE:APG) is a business services provider that focuses on fire and life safety, security, and specialty infrastructure services. On July 31, 2026, APi Group Corporation (NYSE:APG) closed at $39.68 per share, reflecting a market capitalization of $17.31 billion. APi Group Corporation (NYSE:APG) posted a one-month return of -7.35%, while its shares gained 11.49% over the past 52 weeks.
Greystone Capital Management stated the following regarding APi Group Corporation (NYSE:APG) in its Q2 2026 investor update:
“Consider our investments in Limbach, APi Group Corporation (NYSE:APG), Bel Fuse, and Secure Waste Infrastructure. If you screen investment ideas based on positive fundamental or technical attributes, as a large portion of today’s actively managed universe does, these companies will not make the list. Each screened poorly, operated without a distinct label or a direct comp, appeared overly cyclical or confined to a small market, and created value through unit economics that took time to reach the reported financials. In each case, the market assigned a label, valued the business as the worst version of that label, and moved on.
APi Group revealed what can happen when a business operates without a clean label. Investors struggled with a durable business wrapped inside what looked like a cyclical one, as growth investors saw project-based construction and thought cyclical slow growth, while value investors saw steady cash flow and no multiple re-rating. APG was initially labeled a project-based contractor roll-up while management shifted the revenue mix from roughly 30% recurring inspection and service work to closer to 60% today, raising margins and cash flow while reducing cyclicality. What stood out during our initial due diligence was the potential margin story. Inspection revenue carried roughly ten points more gross margin than contract work, and monitoring roughly twenty, so every point of mix that shifted toward recurring work raised margins with near-mathematical certainty.”
APi Group Corporation (NYSE:APG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 65 hedge fund portfolios held APi Group Corporation (NYSE:APG) at the end of the first quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of APi Group Corporation (NYSE:APG) 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 APi Group Corporation (NYSE:APG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered APi Group Corporation (NYSE:APG) and shared the list of best electrical contracting stocks to buy for data hall fit-outs. 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.
