Janus Henderson Investors, an investment management company, released its “Forty Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. Fund returned -12.25% in the quarter, underperforming the Russell 1000 Growth Index (-9.78%). Despite this, its 10-year annualized returns are approximately 15%. The recent quarter’s challenges stemmed from volatility and stock selection in the consumer discretionary sector. Initially, strong economic growth supported the market, but shifts occurred due to the Middle East conflict and inflation concerns. Artificial intelligence (AI) continued to be a strong investment theme, evidenced by rising share prices for AI supply chain companies. The Fund maintains a positive view on the economic outlook despite current uncertainties. In addition, you can check the Fund’s top 5 holdings for its best picks for 2026.
In its first-quarter 2026 investor letter, Janus Henderson Forty Fund highlighted Howmet Aerospace Inc. (NYSE:HWM) as a leading performance contributor. Howmet Aerospace Inc. (NYSE:HWM) is a leading US-based aerospace and industrial company that operates through Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels segments. On June 16, 2026, Howmet Aerospace Inc. (NYSE:HWM) closed at $277.42 per share. One-month return of Howmet Aerospace Inc. (NYSE:HWM) was 6.21%, and its shares gained 62.97% over the past 52 weeks. Howmet Aerospace Inc. (NYSE:HWM) has a market capitalization of about $110.99 billion.
Janus Henderson Forty Fund stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q1 2026 investor letter:
“Aircraft components manufacturer Howmet Aerospace Inc. (NYSE:HWM) was another contributor. Strong competitive positioning has enabled Howmet to capitalize on rising demand for aircraft parts, both to meet a growing orders backlog in the airplane production market and to service aging commercial airline fleets. The company also has experienced rising demand from the defense industry, and it has a longer-term opportunity tied to its production of gas turbines to power data centers. We invested in Howmet several years ago, as we believed the potential of the business was not fully appreciated by other investors. Our confidence paid off, as the company has continued to build on its competitive advantages, while more than doubling its operating margins over the past decade.”
Howmet Aerospace Inc. (NYSE:HWM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 75 hedge fund portfolios held Howmet Aerospace Inc. (NYSE:HWM) at the end of the first quarter, up from 71 in the previous quarter. While we acknowledge the risk and potential of Howmet Aerospace Inc. (NYSE:HWM) 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 HOWMET AEROSPACE INC. (NYSE:HWM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Howmet Aerospace Inc. (NYSE:HWM) and shared the list of best growth stocks trading in oversold territory. 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.
