Janus Henderson Investors, an investment management company, released its “Forty Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. Fund returned -12.25% in the quarter, underperforming the Russell 1000 Growth Index (-9.78%). Despite this, its 10-year annualized returns are approximately 15%. The recent quarter’s challenges stemmed from volatility and stock selection in the consumer discretionary sector. Initially, strong economic growth supported the market, but shifts occurred due to the Middle East conflict and inflation concerns. Artificial intelligence (AI) continued to be a strong investment theme, evidenced by rising share prices for AI supply chain companies. The Fund maintains a positive view on the economic outlook despite current uncertainties. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Janus Henderson Forty Fund highlighted Eaton Corporation plc (NYSE:ETN) as a notable performance contributor. Eaton Corporation plc (NYSE:ETN) is a power management company that offers energy-efficient power management solutions for data centers and other industries. On June 16, 2026, Eaton Corporation plc (NYSE:ETN) closed at $407.71 per share. One-month return of Eaton Corporation plc (NYSE:ETN) was 10.00%, and its shares gained 24.73% over the past 52 weeks. Eaton Corporation plc (NYSE:ETN) has a market capitalization of $158.31 billion.
Janus Henderson Forty Fund stated the following regarding Eaton Corporation plc (NYSE:ETN) in its Q1 2026 investor letter:
“Relative performance benefited from our investment in Eaton Corporation plc (NYSE:ETN), which provides energy-efficient power management solutions to numerous end markets. Investors have been particularly excited about Eaton’s growing opportunity to supply data centers, a business that has resulted in strong order and backlog growth. Eaton’s recent acquisition of Boyd Gaming has also strengthened its position in liquid-cooling technology, which may be another growth opportunity tied to data centers.”
Eaton Corporation plc (NYSE:ETN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 73 hedge fund portfolios held Eaton Corporation plc (NYSE:ETN) at the end of the first quarter, compared to 87 in the previous quarter. Eaton Corporation plc (NYSE:ETN) reported record revenue of $7.5 billion in Q1 2026 and $1.7 billion of segment operating profit. While we acknowledge the risk and potential of Eaton Corporation plc (NYSE:ETN) 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 EATON CORPORATION PLC (NYSE:ETN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Eaton Corporation plc (NYSE:ETN) and shared the list of fastest-growing data center cooling stocks to invest in. 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.
