The London Company released its Q1 2026 investor letter for “The London Company Large Cap Strategy”. In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. A copy of the letter is available to download here. The year started positively with a broad rally, but sentiment reversed in March due to the Iran conflict. Crude oil prices rose, raising inflation concerns and shifting the Fed’s outlook from rate cuts to hikes. Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI concerns in software. Sector dispersion was extreme; Energy surged over 35%, while Tech fell over 9%. The London Company Large Cap portfolio returned 2.6% (2.4% net) in the quarter, outperforming the Russell 1000’s 4.2% decline, supported by stock selection and sector exposure. The strategy’s quality, high active share, and downside resilience were effective in an unsettled market. The firm views the recent setback as a pause in a multi-year cycle, not a reversal. 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 Large Cap Strategy highlighted FedEx Corporation (NYSE:FDX) as a leading contributor. FedEx Corporation (NYSE:FDX) is a US-based company that focuses on transportation, e-commerce, and business services. On June 10, 2026, FedEx Corporation (NYSE:FDX) closed at $319.25 per share. One-month return of FedEx Corporation (NYSE:FDX) was 4.34%, and its shares gained 76.20% over the past 52 weeks. FedEx Corporation (NYSE:FDX) has a market capitalization of $76.18 billion.
The London Company Large Cap Strategy stated the following regarding FedEx Corporation (NYSE:FDX) in its Q1 2026 investor letter:
“FedEx Corporation (NYSE:FDX) – FDX was a top contributor following better-than-expected results, driven by disciplined pricing, improved revenue quality, and continued cost reductions. Margins expanded in the Express segment, while domestic volumes remained relatively resilient despite ongoing freight weakness. The company continues to generate strong cash flow and maintain a solid balance sheet, and we remain constructive given improving industry fundamentals supported by capacity rationalization.”
FedEx Corporation (NYSE:FDX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 86 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the first quarter, up from 68 in the previous quarter. While we acknowledge the risk and potential of FedEx Corporation (NYSE:FDX) 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 FedEx Corporation (NYSE:FDX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FedEx Corporation (NYSE:FDX) and shared the list of best stocks to buy according to billionaire Bill Gates. 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.
