Longleaf Partners, managed by Southeastern Asset Management, released its first-quarter 2026 investor letter for its “Small-Cap Fund”. A copy of the letter can be downloaded here. The Fund returned -2.72% in the quarter, outperforming the Russell 3000’s -3.96% return and lagging the Russell 2000 Index’s 0.89% and the Russell 2000 Value Index’s 4.96% gains. The market experienced significant sector-wide movements in the quarter driven by perceptions surrounding AI outcomes, alongside complications from the conflict in Iran and escalating private credit risks. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Longleaf Partners Small-Cap Fund highlighted Tripadvisor, Inc. (NASDAQ:TRIP). Tripadvisor, Inc. (NASDAQ:TRIP) is a US-based online travel company that offers travel guidance products and services, which negatively impacted the Fund’s performance in that quarter. On June 29, 2026, Tripadvisor, Inc. (NASDAQ:TRIP) closed at $14.03 per share, reflecting a market capitalization of $1.63 billion. Tripadvisor, Inc. (NASDAQ:TRIP) posted a one-month return of 17.50%, and its shares gained 1.15% over the past 52 weeks.
Longleaf Partners Small-Cap Fund stated the following regarding Tripadvisor, Inc. (NASDAQ:TRIP) in its Q1 2026 investor letter:
“Tripadvisor, Inc. (NASDAQ:TRIP) – Digital experiences, dining and travel company Tripadvisor was a detractor for the quarter. As previously mentioned, we were pleased to see board improvement at the company. Unfortunately, this came after a disappointing quarter and a lack of board urgency up to this point. The legacy Tripadvisor business has been worse than we first thought a year ago. However, it has gone from only ~20% of our value then to now closer to 10%, while Viator and TheFork have grown. Macro travel trends got worse in the quarter as well. To the positive, we believe that the company is now acting on what is important to realize value per share. There are a variety of strategic options available to this company, and we look forward to how this year develops.”
Tripadvisor, Inc. (NASDAQ:TRIP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Tripadvisor, Inc. (NASDAQ:TRIP) at the end of the first quarter, compared to 43 in the previous quarter. In Q1 2026, Tripadvisor, Inc.’s (NASDAQ:TRIP) revenue fell 4% year-over-year to $382 million, while its Consolidated adjusted EBITDA of $22 million surpassed expectations. While we acknowledge the risk and potential of Tripadvisor, Inc. (NASDAQ:TRIP) 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 Tripadvisor, Inc. (NASDAQ:TRIP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Tripadvisor, Inc. (NASDAQ:TRIP) and shared a bullish thesis 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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
