Longleaf Partners, managed by Southeastern Asset Management, released its first-quarter 2026 investor letter. A copy of the letter is available to download here. The Fund returned -4.46% in the quarter, compared to the S&P 500’s -4.33% and the Russell 1000 Value Index’s 2.10% return. The year began similarly to the second half of 2025, with rising stocks and penalization for caution. February was marked by unusual sector-wide movements influenced by perceived AI outcomes. Complications arose from the Iran War and increasing private credit risks. The Fund initially lagged the market, but performance improved as conditions worsened. The fund ended the quarter with a P/V of mid-50s%, which bodes well for promising future returns. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Longleaf Partners Fund highlighted stocks like FedEx Corporation (NYSE:FDX). FedEx Corporation (NYSE:FDX) is a US-based company that focuses on transportation, e-commerce, and business services. On May 15, 2026, FedEx Corporation (NYSE:FDX) closed at $375.78 per share. One-month return of FedEx Corporation (NYSE:FDX) was -4.57%, and its shares gained 66.19% over the past 52 weeks. FedEx Corporation (NYSE:FDX) has a market capitalization of $89.66 billion.
Longleaf Partners Fund stated the following regarding FedEx Corporation (NYSE:FDX) in its Q1 2026 investor letter:
“FedEx Corporation (NYSE:FDX) – Global logistics company FedEx was a contributor for the quarter. The stock responded to another quarter of strong execution, led by continued momentum at the Federal Express (FEC) segment, where volume growth, yield growth, and cost control again translated into meaningful profit growth. FEC delivered its most profitable peak holiday season ever, with margins expanding for a sixth consecutive quarter as more volume flowed through Network 2.0-optimized facilities and management continued to move the business toward higher-value B2B verticals. FedEx Freight remains on track to be spun off on June 1st and will be well positioned to benefit from a recovery in industrial demand as an independent company. Even after the stock price move, we continue to believe the market underappreciates the earnings power of the core parcels business and the value that can be unlocked through the Freight separation.”
FedEx Corporation (NYSE:FDX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 68 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the fourth quarter, up from 60 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 stocks Jim Cramer discussed. 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.
