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 Dominion Energy, Inc. (NYSE:D). Dominion Energy, Inc. (NYSE:D) is a leading utility company that provides regulated electricity and natural gas services in the United States. On June 9, 2026, Dominion Energy, Inc. (NYSE:D) closed at $66.25 per share. One-month return of Dominion Energy, Inc. (NYSE:D) was 5.63%, and its shares gained 19.22% over the past 52 weeks. Dominion Energy, Inc. (NYSE:D) has a market capitalization of $58.27 billion.
The London Company Income Equity Strategy stated the following regarding Dominion Energy, Inc. (NYSE:D) in its Q1 2026 investor letter:
“Increased: Dominion Energy, Inc. (NYSE:D) – Used additional cash to add to our D position. It continues to generate consistent, regulated earnings and should benefit from long-term demand growth from data center expansion. The dividend payout remains attractive and it is a defensive name.”
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
Dominion Energy, Inc. (NYSE:D) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 37 hedge fund portfolios held Dominion Energy, Inc. (NYSE:D) at the end of the first quarter, compared to 40 in the previous quarter. While we acknowledge the risk and potential of Dominion Energy, Inc. (NYSE:D) 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 Dominion Energy, Inc. (NYSE:D) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Dominion Energy, Inc. (NYSE:D) and shared the list of best renewable energy stocks to buy according to billionaires. 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.
