Silver Beech Capital, a value-oriented investment management firm, released its first-quarter 2026 investor letter. A copy of the letter is available to download here. Since its inception, Silver Beech has achieved a net annualized return of 16.4%, representing an annualized outperformance of 4.0% over the S&P 500. The fund returned -2.0% through the first quarter of 2026, compared to the S&P 500’s -4.33% and the Russell 2000’s 0.9% YTD returns. A sharp underlying divergence in the market was driven by the disruptive impact of artificial intelligence on business models and the disruption of global energy supply chains due to the Iran war. Capital rotated toward perceived beneficiaries, with semiconductors and oil & gas exploration companies appreciated by 28% and 35%, respectively, while software fell by 24%. Many equity prices are now disconnected from fundamentals. In this backdrop, the Fund continued to focus on investing in undervalued companies less reliant on uncertain macroeconomic or geopolitical shifts.
In its first-quarter 2026 investor letter, Silver Beech Capital highlighted Apollo Global Management, Inc. (NYSE:APO). Apollo Global Management, Inc. (NYSE:APO) is a leading asset management company specializing in alternative investments. On May 21, 2026, Apollo Global Management, Inc. (NYSE:APO) closed at $132.24 per share. One-month return of Apollo Global Management, Inc. (NYSE:APO) was 5.99%, and its shares gained 1.09% over the past 52 weeks. Apollo Global Management, Inc. (NYSE:APO) has a market capitalization of $76.24 billion.
Silver Beech Capital stated the following regarding Apollo Global Management, Inc. (NYSE:APO) in its Q1 2026 investor letter:
“In the first quarter, we initiated a large position in Apollo Global Management, Inc. (NYSE:APO). The market has penalized Apollo for its complexity, underappreciated the durability of its growth, and lumped it in with peers exposed to a wave of private credit anxieties from which we believe Apollo is largely insulated. The convergence of private capital and life insurance is one of the most consequential and durable themes in financial services today, and Apollo is its most structurally advantaged operator due to the pioneering combination of its asset manager and captive life insurer.
Business model Apollo’s operating model is best understood as three integrated engines: • An alternative asset manager managing capital on behalf of Athene, third-party insurers, institutional investors, and private wealth clients across drawdown funds, perpetual capital vehicles, separately managed accounts, sidecars, and other structures. • A fully integrated life insurer—largely Athene—that originates long-duration life and annuity liabilities, supplying captive, permanent capital. • An origination machine producing credit assets through owned lending platforms (corporate, real estate, asset-backed, consumer, specialty), bilateral originations, and bank partnerships…” (Click here to read the full text)
Apollo Global Management, Inc. (NYSE:APO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 74 hedge fund portfolios held Apollo Global Management, Inc. (NYSE:APO) at the end of the fourth quarter, up from 80 in the previous quarter. While we acknowledge the risk and potential of Apollo Global Management, Inc. (NYSE:APO) 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 Apollo Global Management, Inc. (NYSE:APO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Apollo Global Management, Inc. (NYSE:APO) and shared the list of best value stocks to buy for long term investment. 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.
