Investment management company Vulcan Value Partners recently released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The firm focuses on improving long-term returns and lowering risk, rather than short-term results. In the quarter, the Large Cap Composite (Net) returned -14.1%, the Small Cap Composite (Net) returned -6.8%, the Focus Composite (Net) returned -19.1%, the Focus Plus Composite (Net) returned -19.1% as well as the All-Cap Composite (Net) returned -13.5%. Throughout 2025 and escalating to the first quarter of 2026, the market is experiencing heightened volatility related to AI’s potential, leading to mispricing of some strong companies. The current market turbulence presents opportunities for long-term investors willing to accept short-term volatility in stable-valued companies and improve the margin of safety. The letter identified businesses into three groups with perceived /real AI disruption risk: Software, Alternative Asset Managers, and indirectly impacted businesses. The firm highlights that its investment strategy aims to leverage this volatility to reduce risk and increase returns in the long term. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Vulcan Value Partners highlighted Littelfuse, Inc. (NASDAQ:LFUS) as a material contributor. Littelfuse, Inc. (NASDAQ:LFUS) is a leading industrial technology company that designs, manufactures, and sells electronic components, modules, and subassemblies. On April 22, 2026, Littelfuse, Inc. (NASDAQ:LFUS) closed at $394.55 per share. One-month return of Littelfuse, Inc. (NASDAQ:LFUS) was 16.82%, and its shares gained 123.44% over the past 52 weeks. Littelfuse, Inc. (NASDAQ:LFUS) has a market capitalization of $9.93 billion.
Vulcan Value Partners stated the following regarding Littelfuse, Inc. (NASDAQ:LFUS) in its Q1 2026 investor letter:
“There was one material contributor to performance: Littelfuse, Inc. (NASDAQ:LFUS). Littelfuse is an industrial manufacturing company focused on developing circuit protection, sensing, and power control products used to safeguard electrical systems in automotive, industrial, and electronics end markets. Its portfolio includes fuses, power semiconductors, relays, sensors, and surge protection devices that help prevent electrical damage and enhance reliability. The company reported strong results for the quarter with revenues rising 12% and margins improving by over 500 basis points. In addition, their data center business is growing very strongly and is now up to a double-digit percentage of revenue. Data center design wins doubled in 2025 and next generation data centers use significantly more of Littelfuse’s content, often double or more. We expect the data center opportunity to contribute meaningfully to growth and continued margin expansion going forward.”
Littelfuse, Inc. (NASDAQ:LFUS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 32 hedge fund portfolios held Littelfuse, Inc. (NASDAQ:LFUS) at the end of the fourth quarter, compared to 46 in the previous quarter. While we acknowledge the risk and potential of Littelfuse, Inc. (NASDAQ:LFUS) 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 Littelfuse, Inc. (NASDAQ:LFUS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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.
