Eagle Point Capital, an investment firm, released its “Spring 2026 Portfolio Update” investor letter. A copy of the letter can be downloaded here. The firm reported a resilient performance for the quarter while emphasizing its long-term, fundamentals-driven strategy, noting that detailed quarterly returns would be reflected in client brokerage statements but reaffirming steady compounding aligned with its historical approach. The firm attributed its stability to a disciplined focus on “cockroach-like” businesses, durable, mission-critical companies that benefit from timeless human needs, strong physical infrastructure, and limited susceptibility to rapid technological disruption. Despite an increasingly volatile and unpredictable macro environment shaped by geopolitical conflicts, inflation shocks, and rapid technological shifts like AI, Eagle Point expressed a constructive market outlook, arguing that uncertainty and periodic downturns create opportunities for long-term investors. The firm believes its emphasis on resilient industries, fragmented customer bases, and essential services positions the portfolio to withstand disruption and continue compounding over time, even as markets face ongoing volatility and structural change. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Eagle Point Capital highlighted stocks like McKesson Corporation (NYSE:MCK). McKesson Corporation (NYSE:MCK) is a healthcare services company that distributes pharmaceuticals and medical products while providing technology solutions to healthcare providers. The one-month return of McKesson (NYSE:MCK) was -11.46% while its shares traded between $637.00 and $999.00 over the last 52 weeks. On May 15, 2026, McKesson (NYSE:MCK) stock closed at approximately $760.57 per share, with a market capitalization of about $91.4 billion.
Eagle Point Capital stated the following regarding McKesson Corporation (NYSE:MCK) in its Q1 2026 investor letter:
“McKesson Corporation (NYSE:MCK), the oldest company in our portfolio, is a great illustration. McKesson began delivering pharmaceuticals by horse and buggy in 1833, almost 200 years ago. The world has changed a lot since then, but what hasn’t is the need to get pharmaceuticals from point A to point B safely, securely, and efficiently. That is a societal need that will never change.
Today McKesson uses trucks and vans, but someday it may use drones or something else entirely. The world is certain to change in ways we cannot fathom. Those changes will inevitably have a trickle-down effect on McKesson. We’re confident McKesson can weather the change for a few reasons (Click here to read the more).
McKesson Corporation (NYSE:MCK) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 72 hedge fund portfolios held McKesson Corporation (NYSE:MCK) at the end of the fourth quarter, which was 73 in the previous quarter. While we acknowledge the risk and potential of McKesson Corporation (NYSE:MCK) 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 McKesson Corporation (NYSE:MCK) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered McKesson Corporation (NYSE:MCK) and shared the list of the best cash-rich stocks. 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.
