Impax Asset Management, an investment management firm based in London, specializing in sustainable investing, released its first-quarter 2026 investor letter for its “Impax US Sustainable Economy Fund”. A copy of the letter is available to download here. The US Sustainable Economy portfolio underperformed the Russell 1000 benchmark in Q1 2026, primarily due to its lack of exposure to the surging Energy sector. Despite some initial support from solid corporate earnings and falling bond yields, the market became risk-averse due to escalating tensions in the Middle East. This resulted in rising energy prices and inflation expectations, ending a three-quarter winning streak for the S&P 500 index. The firm believes there will be a renewed focus on solutions like renewables that enhance energy security and efficiency, along with investments in better grids, power storage, and technologies to reduce energy intensity. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Impax US Sustainable Economy Fund highlighted QUALCOMM Incorporated (NASDAQ:QCOM). QUALCOMM Incorporated (NASDAQ:QCOM) is a semiconductor and communication technology company focusing on the development and commercialization of foundational technologies for the wireless industry. On May 28, 2026, QUALCOMM Incorporated (NASDAQ:QCOM) closed at $243.29 per share. One-month return of QUALCOMM Incorporated (NASDAQ:QCOM) was 37.44%, and its shares gained 67.56% over the past 52 weeks. QUALCOMM Incorporated (NASDAQ:QCOM) has a market capitalization of $256.43 billion.
Impax US Sustainable Economy Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q1 2026 investor letter:
“QUALCOMM Incorporated (NASDAQ:QCOM) (Information Technology, Semiconductors) is held due to its best-in-class Corporate Resilience score, scoring highly from Environment & Social factors as well as Governance. The stock is also well positioned from a sustainability opportunity perspective with high scores on Digital Infrastructure and Resource Efficiency. Underperformance was driven by a sharp sell-off after record fiscal Q1 results were overshadowed by deeply disappointing forward guidance, as AI data center demand has created industry-wide memory shortages. Apple’s accelerating development of in-house modem chips threatens Qualcomm’s largest customer relationship, and escalating US-China trade tensions create meaningful uncertainty around its substantial China revenue exposure.”
QUALCOMM Incorporated (NASDAQ:QCOM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 71 hedge fund portfolios held QUALCOMM Incorporated (NASDAQ:QCOM) at the end of the first quarter, compared to 78 in the previous quarter. In the second quarter of fiscal 2026, QUALCOMM Incorporated (NASDAQ:QCOM) reported revenues of $10.6 billion and non-GAAP earnings per share of $2.65. While we acknowledge the risk and potential of QUALCOMM Incorporated (NASDAQ:QCOM) 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 QUALCOMM Incorporated (NASDAQ:QCOM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered QUALCOMM Incorporated (NASDAQ:QCOM) and shared the list of high-quality stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 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.
