Matrix Asset Advisors, an asset management company, released its Q1 2026 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2026, the stock market declined by -4.33% after three years of gains, initially lifted by strong earnings and expectations of interest rate cuts. However, following military actions in Iran on February 28, rising oil prices, higher interest rates, and heightened economic uncertainty lowered stock prices. Technology, Consumer Discretionary, and Financials were the sectors with the lowest quarterly performance. The top-performing sectors were consumer staples, utilities, and energy. Despite these challenges, Matrix’s portfolios performed relatively well, with the Dividend Income portfolio achieving a small positive return and the LCV portfolio outpacing the S&P 500®. The firm continued its cautious optimism for 2026 and believes the current volatile environment presents significant investment opportunities. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Matrix Asset Advisors highlighted stocks like Intuit Inc. (NASDAQ:INTU). Intuit Inc. (NASDAQ:INTU) is a financial software company offering products and services for financial management, payments, capital, compliance, and marketing. On May 15, 2026, Intuit Inc. (NASDAQ:INTU) closed at $393.00 per share. One-month return of Intuit Inc. (NASDAQ:INTU) was -0.78%, and its shares lost 40.13% over the past 52 weeks. Intuit Inc. (NASDAQ:INTU) has a market capitalization of $111.77 billion.
Matrix Asset Advisors stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q1 2026 investor letter:
“As mentioned above in our Q2 outlook, the software sector blew up in the quarter. After a careful review of the sector’s leading companies, we initiated a small position in Intuit Inc. (NASDAQ:INTU), a leading U.S. financial software and data driven platform serving consumers, small businesses, and accounting/tax professionals. It is best known for its TurboTax business. Intuit’s share price declined from over $800 in 2025 to the low $400’s. We started our position near the end of the quarter at approximately $425 per share. AI poses a threat to some software businesses, but we believe Intuit has a loyal customer base and will adapt to technological change. The company has an “ecosystem” advantage: workflows embedded in customers’ financial lives (tax, accounting, payroll, payments, credit/financial offers) are efficient and discourage switching to another system. At 17x forward earnings, we believe it is very attractively priced for a company that has grown its earnings at a double-digit rate.”
Intuit Inc. (NASDAQ:INTU) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 91 hedge fund portfolios held Intuit Inc. (NASDAQ:INTU) at the end of the fourth quarter, compared to 96 in the previous quarter. In the second quarter of fiscal 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $4.7 billion, reflecting a 17% year-over-year growth. While we acknowledge the risk and potential of Intuit Inc. (NASDAQ:INTU) 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 Intuit Inc. (NASDAQ:INTU) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Intuit Inc. (NASDAQ:INTU) and shared the list of best American AI stocks to buy. 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.
