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 Fortune Brands Innovations, Inc. (NYSE:FBIN). Headquartered in Deerfield, Illinois, Fortune Brands Innovations, Inc. (NYSE:FBIN) is a home and security products provider. On May 15, 2026, Fortune Brands Innovations, Inc. (NYSE:FBIN) closed at $34.37 per share. One-month return of Fortune Brands Innovations, Inc. (NYSE:FBIN) was -16.94%, and its shares lost 37.06% over the past 52 weeks. Fortune Brands Innovations, Inc. (NYSE:FBIN) has a market capitalization of $4.1 billion.
Longleaf Partners Fund stated the following regarding Fortune Brands Innovations, Inc. (NYSE:FBIN) in its Q1 2026 investor letter:
“Fortune Brands Innovations, Inc. (NYSE:FBIN) – Building products company Fortune Brands saw its stock price decline due to near-term earnings weakness and leadership uncertainty. 4Q25 results missed expectations due to weakening markets. Guidance for 2026 was lower than expectations due to market demand remaining soft and likely some internal execution missteps. Nick Fink resigned as CEO to take the CEO spot at Constellation Brands, and the board too quickly announced Amit Banati, a current board member, as the new CEO. Ed Garden of Garden Investments subsequently disclosed a substantial position in FBIN stock and publicly implored the board to reconsider their CEO decision and conduct a national search. While disruptive in the near term, this led to multiple benefits including improved governance changes at the board level, a new CEO search, and Ed Garden taking a board seat. We have been in constructive dialog with all parties and are glad that these strong brands will receive renewed leadership going forward.”
Fortune Brands Innovations, Inc. (NYSE:FBIN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Fortune Brands Innovations, Inc. (NYSE:FBIN) at the end of the fourth quarter, compared to 40 in the previous quarter. In Q1 2026, Fortune Brands Innovations, Inc. (NYSE:FBIN) reported sales of $1 billion, down 2% year-over-year. While we acknowledge the risk and potential of Fortune Brands Innovations, Inc. (NYSE:FBIN) 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 Fortune Brands Innovations, Inc. (NYSE:FBIN) 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.
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Disclosure: None. This article is originally published at Insider Monkey.
