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 stocks like Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) is a leading global provider of products and services that enable enterprise information technology environments across multiple industries. On May 28, 2026, Oracle Corporation (NYSE:ORCL) closed at $203.70 per share. One-month return of Oracle Corporation (NYSE:ORCL) was 18.55%, and its shares gained 23.06% over the past 52 weeks. Oracle Corporation (NYSE:ORCL) has a market capitalization of $585.85 billion.
Impax US Sustainable Economy Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2026 investor letter:
“Oracle Corporation (NYSE:ORCL) (Information Technology, Software) stands out with a strong sustainability profile, offering notable opportunities in Digital Infrastructure, Education and the development of Enhanced Skills & Innovation. The stock declined as concerns persisted around the company’s accumulation of debt to finance its AI-related data center expansion in partnership with OpenAI. Deteriorating investor sentiment toward large-scale AI infrastructure spending, which intensified as the market rotated away from technology, compounded worries about Oracle’s balance sheet trajectory and the portfolio’s overweight contributed negatively.”
Oracle Corporation (NYSE:ORCL) ranks 40 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 115 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the first quarter, up from 111 in the previous quarter. While we acknowledge the risk and potential of Oracle Corporation (NYSE:ORCL) 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 Oracle Corporation (NYSE:ORCL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Oracle Corporation (NYSE:ORCL) and shared the list of best cloud stocks to buy as Azure growth hits 40%. 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.
