Argosy Investors, an investment management company, released its Q1 2026 investor letter. A copy is available to download here. The letter discussed the current transformative investment landscape driven by the AI capex boom. The author expressed skepticism about the durability of the earnings flowing to its market participants and suppliers. The main challenge during capex booms is balancing supply and demand, especially the accelerated shift of AI technologies. While companies benefit from rising volumes and prices, the potential for earnings to be overstated becomes a concern if supply catches up quicker than anticipated. In this backdrop, the firm remains cautious in taking investment decisions. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Argosy Investors highlighted Endava plc (NYSE:DAVA). Endava plc (NYSE:DAVA) is a leading technology company that offers digital product acceleration services, advisory, digital strategy services, and delivery services. On June 5, 2026, Endava plc (NYSE:DAVA) closed at $2.79 per share. One-month return of Endava plc (NYSE:DAVA) was -29.19%, and its shares lost 83.17% over the past 52 weeks. Endava plc (NYSE:DAVA) has a market capitalization of $147.43 million.
Argosy Investors stated the following regarding Endava plc (NYSE:DAVA) in its Q1 2026 investor letter:
“I exited Endava plc (NYSE:DAVA) during the quarter. As noted in my last letter, the position was among my most fluid. I have “seen the light” on AI, and I need to step back and re-assess this position for longer than a quarter. There are significant disruptions happening to this business and I have to acknowledge that my visibility into their prospects 2-3 years from now is very fuzzy.”
Endava plc (NYSE:DAVA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 11 hedge fund portfolios held Endava plc (NYSE:DAVA) at the end of the first quarter, compared to 16 in the previous quarter. While we acknowledge the risk and potential of Endava plc (NYSE:DAVA) 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 Endava plc (NYSE:DAVA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Endava plc (NYSE:DAVA) and shared the list of most undervalued cybersecurity stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
