Giverny Capital Asset Management, LLC, an investment management company, recently published its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The model portfolio returned 13.70% this quarter, compared to the S&P 500’s 15.20% return. YTD, the portfolio gained 5.89%, while the index increased by 10.21%. The long-term link between stock appreciation and earnings growth is strong; Benjamin Graham described the market as a “voting machine” in the short term and a “weighing machine” in the long term. Despite the S&P 500’s 10.2% rise in the first half of the year, 210 stocks lost value, indicating market anomalies. High-quality earnings compounders that benefit from AI capabilities are likely to maintain their competitive edge. Recently, the market has increasingly chased momentum. Tech giants are taking advantage of the optimism of investors amid fears of an AI bubble. Despite strong profit margins, reliance on “moonshot” investments raises sustainability concerns. The author recommends investing in both emerging tech leaders and established firms. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Giverny Capital Asset Management highlighted JPMorgan Chase & Co. (NYSE:JPM). JPMorgan Chase & Co. (NYSE:JPM) is a leading financial services company that provides financial, commercial, asset and wealth management as well as investment banking services. On July 21, 2026, JPMorgan Chase & Co. (NYSE:JPM) closed at $345.23 per share, reflecting a market capitalization of $917.69 billion. JPMorgan Chase & Co. (NYSE:JPM) posted a one-month return of 3.53%, while its shares gained 16.33% over the past 52 weeks.
Giverny Capital Asset Management stated the following regarding JPMorgan Chase & Co. (NYSE:JPM) in its Q2 2026 investor update:
“Roughly 40% of the Index outperforming the average and 60% underperforming is not so unusual, but two-thirds of that lagging group underperforming by more than 10 percentage points seems like a lot. Even this level of dispersion might make sense if most of the earnings growth in the Index was concentrated in the 200 stocks that were up double digits. This is not the case. We own Index constituents such as Charles Schwab, JPMorgan Chase & Co. (NYSE:JPM), Mastercard and Progressive Corp. that continue to grow their earnings per share at healthy rates and in some cases at higher rates than usual, but whose stock prices are lagging. JP Morgan has compounded earnings in the low teens over the past decade, with growth accelerating recently, but the stock lags the market this year.”
JPMorgan Chase & Co. (NYSE:JPM) ranks 21 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 131 hedge fund portfolios held JPMorgan Chase & Co. (NYSE:JPM) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the risk and potential of JPMorgan Chase & Co. (NYSE:JPM) 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 JPMorgan Chase & Co. (NYSE:JPM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered JPMorgan Chase & Co. (NYSE:JPM) and shared the list of best stocks to buy following Federal Reserve pivot expectations. In addition, please check out our hedge fund investor letters Q2 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.
