In the first quarter of 2026, the Massif Capital Real Assets Strategy achieved a net gain of 16.0% after fees. A copy of its Q1 2026 investor letter can be downloaded here. This marks the 28th consecutive quarter for the strategy, which has reached an annualized return of 18.7% net of fees since its inception. Investments in mining and energy drove the strong performance in the first quarter. In April alone, the portfolio rose by 10.9% on a gross basis. This month was particularly favorable for real assets, with materials leading the way and energy remaining stable despite ongoing geopolitical turmoil. As previously mentioned, the portfolio is prepared for the long-term impact of the war, as the firm anticipates a significant transition from a geology-first to a geography-first commodity framework. In addition, please check the portfolio’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Massif Capital highlighted Equinor ASA (NYSE:EQNR). Equinor ASA (NYSE:EQNR) is a leading energy company that engages in the discovery and appraisal of new resources, as well as the commercial development and operation of the oil and gas portfolios. On May 28, 2026, Equinor ASA (NYSE:EQNR) closed at $36.55 per share. One-month return of Equinor ASA (NYSE:EQNR) was -7.96%, and its shares gained 55.60% over the past 52 weeks. Equinor ASA (NYSE:EQNR) has a market capitalization of $91.06 billion.
Massif Capital stated the following regarding Equinor ASA (NYSE:EQNR) in its Q1 2026 investor letter:
“The first quarter’s results were driven by mining and energy investments. The Norwegian upstream complex (Var Energi, Equinor ASA (NYSE:EQNR), Aker BP), joined by the UK’s Harbour Energy, contributed a combined 12.0% of gross quarterly returns. Energy was a wash. The Norwegian and UK producers (Equinor, Aker BP, Vår Energi, Harbour Energy) had carried the book through the March oil shock. Regular reports of US-Iran ceasefire progress proved false every time President Trump mentioned it, but the market still responded to every one. By April 30th, Brent traded above $124. The result for the month was Norway positions down 27 basis points, Harbour up 53, elsewhere, many energy names, such as US listed integrated names, produced roughly flat results for the month. Every week, the Hormuz disruption extends and tightens the supply picture, and the producers we own are generating cash at $80 Brent and gushing at $115. The thesis is unchanged.
The supermajors, taken in aggregate, have not been replacing reserves. Reserve replacement ratios over the past five years reflect a pattern of managed decline rather than growth investment. Equinor is the exception. The Norwegian Continental Shelf operates under a fiscal regime that combines a 78% marginal tax rate, cash-flow expensing of capital, and a 71.8% government refund of exploration losses. The structure socializes downside while permitting full capture of after-tax upside, making it the most operator-friendly high-tax regime in the developed world. Equinor has publicly committed to holding production at 2020 levels through 2035, the only major to have made such a commitment backed by a credible fiscal foundation. The portfolio’s Norwegian overweight, Var Energi, Aker BP, and Equinor, sit inside this distinction.”
Equinor ASA (NYSE:EQNR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 28 hedge fund portfolios held Equinor ASA (NYSE:EQNR) at the end of the first quarter, up from 20 in the previous quarter. While we acknowledge the risk and potential of Equinor ASA (NYSE:EQNR) 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 Equinor ASA (NYSE:EQNR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Equinor ASA (NYSE:EQNR) and shared the list of best commodity stocks to buy for the supercycle. 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.
