Emerald Wealth Partners, an independent asset and wealth management firm based in Zurich, released its Q1 2026 investor letter for the “Growth Equity Strategy.” A copy of the letter can be downloaded here. The first quarter proved challenging for investors. AI fears negatively impacted software and intermediary stocks. Later, geopolitical conflicts shifted focus toward energy and defense sectors. The strategy yielded a return of -9.2% gross and -9.4% net for the quarter. Semiconductor equipment holdings performed best, whereas software stocks were a significant drag. The letter also provided strategic insights into the impact of Artificial Intelligence on the software sector. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Emerald Wealth Partners Growth Equity Strategy highlighted Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) is a leading global provider of products and services that enable enterprise information technology environments across multiple industries. On July 1, 2026, Oracle Corporation (NYSE:ORCL) closed at $142.50 per share, reflecting a market capitalization of $410.47 billion. Oracle Corporation (NYSE:ORCL) posted a one-month return of -39.71%, and its shares lost 39.95% over the past 52 weeks.
Emerald Wealth Partners Growth Equity Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2026 investor letter:
“Oracle Corporation’s (NYSE:ORCL) investment thesis has been dominated by a sharp rise in its Remaining Performance Obligation (RPO, or future sales) from USD 104bn to USD 523bn in H2/2025 which were driven by AI training contracts — most notably with OpenAI. The stock today trades below its pre-announcement level, implying the large additional backlog has negative or zero value. This is irrational. While we will not deny that their large-scale investments in AI data centers for which they will take on approx. USD 80-100bn in new debt will increase risk, the additional business opportunities it creates and the large margin of safety more than compensate for it. Additionally, risks are mitigated by the fact that: (1) The backlog comprises non-cancelable contracts — clients are legally obligated to pay.
(2) Data center capacity (contracted at $248bn over 15–19 years) can be sub-leased to hyperscalers in any excess capacity scenario; given the chronic shortage of powered data center space, Microsoft or others would be willing takers.”
Oracle Corporation (NYSE:ORCL) ranks 40 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 115 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the first quarter, up from 111 in the previous quarter. While we acknowledge the risk and potential of Oracle Corporation (NYSE:ORCL) 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 Oracle Corporation (NYSE:ORCL) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Oracle Corporation (NYSE:ORCL) and shared the list of cheap stocks that are about to explode. 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.
