Palm Valley Capital Management, an investment management firm, has issued the first-quarter 2026 investor letter for the ”Palm Valley Capital Fund.” A copy of the letter is available to download here. In the first quarter, the fund gained 0.74%, while the S&P SmallCap 600 rose 3.51%, and the Morningstar Small Cap Total Return Index saw no change. Initially, small caps surged, with the S&P 600 achieving nearly a 10% year-to-date increase by mid-February. However, shares later declined due to the Iran war and its effects on energy prices. The letter also explored how technology influences the workplace and employment. Additionally, reviewing the fund’s top five holdings can reveal its best investments in 2026.
In its first-quarter 2026 investor letter, Palm Valley Capital Fund highlighted Farmland Partners Inc. (NYSE:FPI) as a notable contributor. Farmland Partners Inc. (NYSE:FPI) is a real estate investment firm that owns and manages farmland. On April 8, 2026, Farmland Partners Inc. (NYSE:FPI) closed at $11.62 per share. One-month return of Farmland Partners Inc. (NYSE:FPI) was -2.92%, and its shares gained 18.57% over the past 52 weeks. Farmland Partners Inc. (NYSE:FPI) has a market capitalization of $515.68 million.
Palm Valley Capital Fund stated the following regarding Farmland Partners Inc. (NYSE:FPI) in its Q1 2026 investor letter:
“The Fund’s top contributors in the first quarter were Chord Energy (ticker: CHRD), Heartland Express (ticker: HTLD), and Farmland Partners Inc. (NYSE:FPI). Farmland Partners is a real estate investment trust (REIT) that owns and leases farmland across the U.S. During the quarter, the REIT reported better-than-expected operating results. Farmland also increased its dividend by 50% (current yield 2.5%). In addition, it continues to sell farms and use the proceeds to reduce debt, buy back stock, and pay special dividends. Over the past year, Farmland sold 60 properties across the Corn Belt, Delta and South, High Plains, and West Coast regions, realizing an overall gain of 38%. We’re pleased with recent operating results and asset sales, but we reduced our position in Q1 as shares reached our estimated value of its farmland.”
Farmland Partners Inc. (NYSE:FPI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 19 hedge fund portfolios held Farmland Partners Inc. (NYSE:FPI) at the end of the fourth quarter, up from 17 in the previous quarter. While we acknowledge the risk and potential of Farmland Partners Inc. (NYSE:FPI) 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 Farmland Partners Inc. (NYSE:FPI) 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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
