The London Company released its Q1 2026 investor letter for “The London Company Small-Mid Cap Strategy”. In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. A copy of the letter is available to download here. The year started positively with a broad rally, but sentiment reversed in March due to the Iran conflict. Crude oil prices rose, raising inflation concerns and shifting the Fed’s outlook from rate cuts to hikes. Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI concerns in software, while small caps proved resilient. Sector dispersion was extreme; Energy surged over 35%, while Tech fell over 9%. Value, Momentum, and Yield drove returns from a factor perspective. In this environment, the London Company Small-Mid Cap portfolio declined 3.4% (-3.6% net) in the quarter vs. a 2.0% increase in the Russell 2500 Index. The relative underperformance was driven by both sector exposure and stock selection. Structural underweight to Energy and commodity-linked industries was a significant detractor. 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 Small-Mid Cap Strategy highlighted CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC). CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) is a software company that provides a software-as-a-service (SaaS) platform for the property and casualty insurance industry. On June 10, 2026, CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) closed at $4.70 per share. One-month return of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) was 10.85%, and its shares lost 47.37% over the past 52 weeks. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) has a market capitalization of $2.75 billion.
The London Company Small-Mid Cap Strategy stated the following regarding CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) in its Q1 2026 investor letter:
“Increased: CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) – We added to our position amid weakness driven by temporarily slower new-product penetration and AI related concerns. We believe concerns over AI disintermediation are overstated, as adoption of CCC’s AI enabled products continues to gain traction. CCC’s deeply embedded platform and network effects across the insurance and repair ecosystem continue to strengthen its competitive moat.”
CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 26 hedge fund portfolios held CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) at the end of the first quarter, compared to 32 in the previous quarter. While we acknowledge the risk and potential of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) 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 CCC INTELLIGENT SOLUTIONS HOLDINGS INC. (NASDAQ:CCC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) and shared Artisan Mid Cap Fund’s views on the company. 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.
