The London Company, an investment management company, released its first-quarter 2026 investor letter for its “The London Company Income Equity Strategy”. A copy of the letter is available to download here. In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. The year began positively on a broad rally, but sentiment reversed sharply in March due to the Iran conflict. Market leadership shifted to a narrow, commodity-focused sector benefiting energy, agriculture, and hard assets. Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI-related concerns in software. Sector dispersion was extreme; Energy surged over 35%, while Tech dropped over 9%. The London Company Income Equity portfolio returned 4.4% (4.2% net) this quarter, outperforming the 2.1% rise in the Russell 1000 Value Index, supported by stock selection and sector exposure. In this environment, the portfolio is positioned to participate in market upside, offering diversification and quality. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, The London Company Income Equity Strategy highlighted Berkshire Hathaway Inc. (NYSE:BRK-B). Berkshire Hathaway Inc. (NYSE:BRK-B) is a multinational conglomerate engaged in insurance, freight rail transportation, and utility businesses. On June 9, 2026, Berkshire Hathaway Inc. (NYSE:BRK-B) closed at $487.77 per share. One-month return of Berkshire Hathaway Inc. (NYSE:BRK-B) was 0.46%, and its shares lost 0.08% over the past 52 weeks. Berkshire Hathaway Inc. (NYSE:BRK-B) has a market capitalization of $1.05 trillion.
The London Company Income Equity Strategy stated the following regarding Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q1 2026 investor letter:
“Increased: Berkshire Hathaway Inc. (NYSE:BRK-B) – We added to BRK.B on relative weakness and the news around the resumption of its buyback program, signaling that the stock is trading under its intrinsic value. BRK.B offers defensive positioning with over $370B in cash, providing optionality in an uncertain macro environment. It maintains several quality characteristics with its capital allocation strategy and diversified earnings across insurance, rails, utilities, and other operating businesses.”
Berkshire Hathaway Inc. (NYSE:BRK-B) ranks 19th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 126 hedge fund portfolios held Berkshire Hathaway Inc. (NYSE:BRK-B) at the end of the first quarter, compared to 133 in the previous quarter. While we acknowledge the risk and potential of Berkshire Hathaway Inc. (NYSE:BRK-B) 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 Berkshire Hathaway Inc. (NYSE:BRK-B) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Berkshire Hathaway Inc. (NYSE:BRK-B) and shared the list of best stocks to buy according to billionaire Bill Gates. 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.
