Auxier Asset Management, an investment advisory firm, released its first quarter 2026 investor letter. A copy of the letter is available to download here. Following a robust start to the year, the market was impacted by the Strait of Hormuz crisis. Concerns over AI disruption, excessive stock-based compensation, and high valuations caused the technology sector to decline, making it the worst-performing S&P 500 sector for the quarter. The conflict in Iran pushed energy prices higher, making the energy sector the top performer. Value stocks outperformed growth stocks, with the Russell 1000 Value Index rising 2.10%, while the Russell 1000 Growth Index fell 9.78%. Despite strong earnings, many software companies experienced declines of 30%-37% in Q1. Auxier Focus Fund’s Investor Class posted a 1.73% gain in the first quarter of 2026, with stocks up 2.00%. Meanwhile, the S&P 500 cap-weighted index decreased by 4.33%, and the equal-weighted index increased by 0.67%. The Fund’s focus remains on identifying businesses and managements that demonstrate a strong culture with heart and soul. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Auxier Asset Management highlighted The Bank of New York Mellon Cor (NYSE:BNY). The Bank of New York Mellon Cor (NYSE:BNY) is a leading international financial services company offering financial products and services. On May 29, 2026, The Bank of New York Mellon Cor (NYSE:BNY) closed at $139.43 per share. One-month return of The Bank of New York Mellon Cor (NYSE:BNY) was 5.72%, and its shares gained 56.70% over the past 52 weeks. The Bank of New York Mellon Cor (NYSE:BNY) has a market capitalization of $95.70 billion.
Auxier Asset Management stated the following regarding The Bank of New York Mellon Cor (NYSE:BNY) in its Q1 2026 investor letter:
“The Bank of New York Mellon Cor (NYSE:BNY) reached all-time highs following their first quarter earnings report of a 42% increase in year-over-year earnings per share along with an 18% increase in interest income resulting from higher yields. Assets under management grew 12% to a record $59.4 trillion. AI initiatives have been paying off as AI agents led to 20% faster client onboarding and 80% faster settlement inquiry investigation; agents are now writing 40% of all code. They returned $1.4 billion through repurchases and dividends and authorized a new $10 billion share repurchase program. CEO Robin Vince has done an exceptional job since taking over four years ago. Major US banks as a whole are aggressively retiring stock in 2026 due to recent deregulation, with a record $33 billion bought back in the first quarter alone–up 35% from the prior year quarter. This is the type of “double play” return we seek; an undervalued, vital, dull business with inspired management improving operating results leading to a sixfold return on our investment.”
The Bank of New York Mellon Cor (NYSE:BNY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 55 hedge fund portfolios held The Bank of New York Mellon Cor (NYSE:BNY) at the end of the first quarter, compared to 60 in the previous quarter. While we acknowledge the risk and potential of The Bank of New York Mellon Cor (NYSE:BNY) 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 The Bank of New York Mellon Cor (NYSE:BNY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered The Bank of New York Mellon Cor (NYSE:BNY) and shared the list of top stocks to buy from Goldman Sachs bank stocks. 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.
