Montaka Global Investments, an investment management company, released its first-quarter 2026 investor letter. A copy of the letter is available to download here. The March quarter was dominated by Iran’s geopolitical conflict, which sharply revised stocks’ valuation multiples. In Q1, the portfolio holdings declined due to valuation changes, but the firm trusts in the stocks’ fundamentals. The letter emphasized three key themes for future investors: AI, Geopolitics, and Market valuations. While the market focuses on war, oil, inflation, and interest rates, the firm seeks opportunities in select businesses with strong advantages and large, growing markets. In this economic backdrop, the firm reaffirms its approach of patient investing in advantaged businesses amid large structural shifts at attractive prices. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Montaka Global Investments highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a newly added position. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading manufacturer of integrated circuits and other semiconductor devices. On April 22, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $387.44 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 18.81%, and its shares gained 135.98% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.01 trillion.
Montaka Global Investments stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:
“We also acquired Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) – more commonly known as TSMC – the world’s effective monopolist in AI semiconductor fabrication.
Given Montaka’s deep work in AI over many years, we’ve been following this company for some time. We had previously opted against investing in TSMC because of over geopolitical tail risk concerns, and we continue to handicap this investment for its concentrated exposure to Taiwan.
That said, the combination of accelerating demand for AI compute, combined with limited opportunities to expand US electric power generation capacity, means enhanced power efficiency will likely be a primary source of compute capacity expansion for the world’s cloud computing hyperscalers. And this gives TSMC extreme pricing power that we believe continues to be underestimated.”
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks 6th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 224 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the fourth quarter, up from 194 in the previous quarter. While we acknowledge the risk and potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 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 Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared a list of AI stocks in focus on Wall Street. 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.
