The London Company, an investment management company, released its first-quarter 2026 investor letter for its “The London Company Income Equity Strategy”. A copy of the letter is available to download here. In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. The year began positively on a broad rally, but sentiment reversed sharply in March due to the Iran conflict. Market leadership shifted to a narrow, commodity-focused sector benefiting energy, agriculture, and hard assets. Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI-related concerns in software. Sector dispersion was extreme; Energy surged over 35%, while Tech dropped over 9%. The London Company Income Equity portfolio returned 4.4% (4.2% net) this quarter, outperforming the 2.1% rise in the Russell 1000 Value Index, supported by stock selection and sector exposure. In this environment, the portfolio is positioned to participate in market upside, offering diversification and quality. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, The London Company Income Equity Strategy highlighted Chevron Corporation (NYSE:CVX) as a leading contributor. Chevron Corporation (NYSE:CVX) is a leading integrated energy company that operates through Upstream, Downstream, and All Other segments. On June 9, 2026, Chevron Corporation (NYSE:CVX) closed at $186.76 per share. One-month return of Chevron Corporation (NYSE:CVX) was 0.41%, and its shares gained 29.00% over the past 52 weeks. Chevron Corporation (NYSE:CVX) has a market capitalization of $371.95 billion.
The London Company Income Equity Strategy stated the following regarding Chevron Corporation (NYSE:CVX) in its Q1 2026 investor letter:
“Chevron Corporation (NYSE:CVX) – CVX delivered exceptional returns as the price of crude increased to over $100 in response to escalating conflict in Iran. We do not speculate on the direction of commodity prices, and we generally do not favor commodity businesses given that the primary driver of results is outside their control. That said, we have a high degree of confidence in the management team at CVX. We appreciate the discipline and conservatism with which they run the business and the focus they place on shareholder returns.”
Chevron Corporation (NYSE:CVX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 103 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the first quarter, up from 86 in the previous quarter. While we acknowledge the risk and potential of Chevron Corporation (NYSE:CVX) 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 Chevron Corporation (NYSE:CVX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Chevron Corporation (NYSE:CVX) and shared a bullish thesis on the company. 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.
