Broyhill Asset Management, an investment advisor, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Broyhill Equity Composite declined 6.0% in the first quarter, net of all fees and expenses, lagging the MSCI All Country World Index, which declined 3.1%. After a strong start to the year, global stocks fell sharply following the strikes on Iran. The firm’s defensive strategy, with nearly half the portfolio invested in noncyclical sectors, failed to provide the historical protection in the quarter. The portfolio underperformed in the quarter because of its high exposure to non-cyclical industries, lack of energy investments, and over half of its investments are made outside the United States. In addition, please check the Portfolio’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Broyhill Asset Management highlighted Honeywell International Inc. (NASDAQ:HON) as a leading contributor. Honeywell International Inc. (NASDAQ:HON) is an American multinational company that engages in aerospace technology, industrial automation, building automation, and energy and sustainable solutions. On May 15, 2026, Honeywell International Inc. (NASDAQ:HON) closed at $213.24 per share. One-month return of Honeywell International Inc. (NASDAQ:HON) was -7.18%, and its shares gained 0.62% over the past 52 weeks. Honeywell International Inc. (NASDAQ:HON) has a market capitalization of $135.12 billion.
Broyhill Asset Management stated the following regarding Honeywell International Inc. (NASDAQ:HON) in its Q1 2026 investor letter:
“Honeywell International Inc. (NASDAQ:HON) was our second-largest contributor in the quarter. Management accelerated the aerospace spin-off, moving the separation up to the end of June and leaving behind a pure-play automation business. We continue to believe the pieces, including the recently announced Quantinuum IPO, are worth meaningfully more than the whole. Upcoming Investor Days are the next chance for the market to do the math.”
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Honeywell International Inc. (NASDAQ:HON) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 79 hedge fund portfolios held Honeywell International Inc. (NASDAQ:HON) at the end of the fourth quarter, up from 76 in the previous quarter. While we acknowledge the risk and potential of Honeywell International Inc. (NASDAQ:HON) 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 Honeywell International Inc. (NASDAQ:HON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Honeywell International Inc. (NASDAQ:HON) and shared the list of best drone stocks to buy according to Wall Street analysts. 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.
