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 CNH Industrial N.V. (NYSE:CNH). CNH Industrial N.V. (NYSE:CNH) is a multinational equipment and services company that develops, manufacture, and sale agricultural and construction equipment. On May 15, 2026, CNH Industrial N.V. (NYSE:CNH) closed at $10.43 per share. One-month return of CNH Industrial N.V. (NYSE:CNH) was -3.78%, and its shares lost 23.70% over the past 52 weeks. CNH Industrial N.V. (NYSE:CNH) has a market capitalization of $12.93 billion.
Longleaf Partners Fund stated the following regarding CNH Industrial N.V. (NYSE:CNH) in its Q1 2026 investor letter:
“CNH Industrial N.V. (NYSE:CNH) – A leading global agriculture and construction equipment manufacturer, was a contributor for the quarter. The company reported better than expected Q4 2025 results and issued a conservative guide for 2026. CNH’s revenues have been coming down over the last three years, and operating margin in the core agricultural equipment business is forecast to decline from over 15% in 2023 to around 5% in 2026. 2026 is likely to be at or close to the cyclical trough, and we expect sales will start growing again from 2027 onwards. CNH operates in a concentrated industry with rational competition and pricing power. With sales growth, operating margin and earnings can expand at a rapid clip. In addition, we are glad to see that the company has restarted partnership discussions for its sub-scale construction equipment business. A potential partial monetization or an outright sale of this business could be value accretive and would allow management to focus on the agricultural business.”
CNH Industrial N.V. (NYSE:CNH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held CNH Industrial N.V. (NYSE:CNH) at the end of the fourth quarter, up from 42 in the previous quarter. CNH Industrial N.V. (NYSE:CNH) reported consolidated revenue of $3.8 billion in Q1 2026, flat versus the prior year. While we acknowledge the risk and potential of CNH Industrial N.V. (NYSE:CNH) 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 CNH Industrial N.V. (NYSE:CNH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CNH Industrial N.V. (NYSE:CNH) and shared the list of best heavy equipment stocks to buy as backlogs hit records. 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.
