Cambiar SMID Fund, managed by Cambiar Investors, published its Q1 2026 investor letter. A copy of the letter is available to download here. The investor class (CAMMX) returned 2.21%, and the institutional class (CAMUX) returned 2.27%, underperforming the Russell 2500 Value Index’s 4.77%. This shortfall was mainly due to declines in certain healthcare and industrial positions and lower exposure to the top-performing Energy sector. The broader US equity market saw mixed results, with the S&P Index down 4.3% and the Russell 2000 up 0.9%. Economic headwinds included Mag 7 stocks’ high capex budgets, AI disruption fears, and redemption gates in private credit, exacerbated by the conflict in Iran, leading to a widespread drop in stock prices. Notably, value stocks outperformed growth stocks in the quarter, offering some downside protection. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Cambiar SMID Fund highlighted stocks CF Industries Holdings, Inc. (NYSE:CF). CF Industries Holdings, Inc. (NYSE:CF) is a leading chemical company and the largest producer of various ammonia and nitrogen fertilizers. On June 3, 2026, CF Industries Holdings, Inc. (NYSE:CF) closed at $116.60 per share. One-month return of CF Industries Holdings, Inc. (NYSE:CF) was -1.75%, and its shares gained 26.35% over the past 52 weeks. CF Industries Holdings, Inc. (NYSE:CF) has a market capitalization of $17.91 billion.
Cambiar SMID Fund stated the following regarding CF Industries Holdings, Inc. (NYSE:CF) in its Q1 2026 investor letter:
“Additional commodities impacted by the Strait of Hormuz closure are nitrogen fertilizers, as approximately 60% of global demand is sourced from the region. Cambiar holding CF Industries Holdings, Inc. (NYSE:CF) is a US-based producer of various ammonia and nitrogen fertilizers; the company benefits from lower feedstock inputs (e.g., natural gas) and higher global average selling prices, resulting in elevated profits/cashflow. Similar to oil prices, we anticipate that fertilizer prices will come down once the Strait reopens; with the stock up over 58% in the quarter, we closed out our position.”
CF Industries Holdings, Inc. (NYSE:CF) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 60 hedge fund portfolios held CF Industries Holdings, Inc. (NYSE:CF) at the end of the first quarter, up from 48 in the previous quarter. While we acknowledge the risk and potential of CF Industries Holdings, Inc. (NYSE:CF) 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 CF Industries Holdings, Inc. (NYSE:CF) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CF Industries Holdings, Inc. (NYSE:CF) and shared the list of best performing dividend stocks so far in 2026. 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.
