Kingdom Capital Advisors, a registered investment advisor, released its first quarter 2026 investor letter. A copy of the letter is available to download here. The first quarter of 2026 delivered a strong performance, despite the market volatility driven by the ongoing conflict in the Middle East. The portfolio thrived by avoiding the significant downturn in AI-driven software stocks and benefiting from several expected catalysts in special situation investments. Kingdom Capital Advisors (KCA Value Composite) returned 8.01% (after fees) in the first quarter, outperforming the Russell 2000 TR at 0.89%, the S&P 500 TR at -4.33%, and the NASDAQ 100 TR at -5.82The composite compounded at 22.81% net annualized versus 4.80% for the Russell 2000, since its inception in January 2022, marking cumulative outperformance of over 115%. The Firm continues to maintain a balanced portfolio of special situation and deep value investments, positioning the composite to deliver strong returns in the future. In addition, please check the Composite’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Kingdom Capital Advisors highlighted stocks like TSS, Inc. (NASDAQ:TSSI). TSS, Inc. (NASDAQ:TSSI) is a data center services company that focuses on designing, deploying, and maintaining end-user and enterprise systems. On April 7, 2026, TSS, Inc. (NASDAQ:TSSI) closed at $12.85 per share. One-month return of TSS, Inc. (NASDAQ:TSSI) was 7.62%, and its shares gained 69.97% over the past 52 weeks. TSS, Inc. (NASDAQ:TSSI) has a market capitalization of $370.66 million.
Kingdom Capital Advisors stated the following regarding TSS, Inc. (NASDAQ:TSSI) in its Q1 2026 investor letter:
“TSS, Inc. (NASDAQ:TSSI): Following a ~50% decline due to delayed rack integration volumes (highlighted in our Q4 letter), the company’s results in March confirmed a successful facility ramp. The stock doubled from its lows, and we exited the position with gains, capping our third profitable cycle in this name over the past two years.”
TSS, Inc. (NASDAQ:TSSI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 9 hedge fund portfolios held TSS, Inc. (NASDAQ:TSSI) at the end of the fourth quarter, up from 7 in the previous quarter. While we acknowledge the risk and potential of TSS, Inc. (NASDAQ:TSSI) 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 TSS, Inc. (NASDAQ:TSSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered TSS, Inc. (NASDAQ:TSSI) and shared Kingdom Capital Advisors’ views on the company last quarter. 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.
