Greenlight Capital, an investment management company, released its Q1 2026 investor letter. In Q1 2026, the Greenlight Capital funds (the “Partnerships”) returned 6.5%, net of fees and expenses, compared to -4.4% for the S&P 500 index. A copy of the letter can be downloaded here. Fundamentally, trading depends on predicting stock movements. Lessons from the financial crisis highlighted the importance of macroeconomic analysis, prompting Greenlight to adopt ‘top-down’ as well as ‘bottom-up’ strategies, including macro instruments based on broader predictions. However, major events push research beyond securities or economic analysis, as seen with the Iran war, which is unpredictable. Most investors currently expect positive outcomes; the market recovered after the ceasefire, showing confidence in peace. In this environment, the firm maintains low exposure, focusing on capital preservation and cautiously considering recovery opportunities. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Greenlight Capital highlighted stocks like Kyndryl Holdings, Inc. (NYSE:KD). Kyndryl Holdings, Inc. (NYSE:KD) is a leading IT infrastructure service company headquartered in New York, New York. On April 23, 2026, Kyndryl Holdings, Inc. (NYSE:KD) closed at $13.42 per share. One-month return of Kyndryl Holdings, Inc. (NYSE:KD) was 8.58%, and its shares lost 58.13% over the past 52 weeks. Kyndryl Holdings, Inc. (NYSE:KD) has a market capitalization of $3.33 billion.
Greenlight Capital stated the following regarding Kyndryl Holdings, Inc. (NYSE:KD) in its Q1 2026 investor letter:
“Our biggest losers were SOFR futures, Kyndryl Holdings, Inc. (NYSE:KD) and Graphic Packaging (GPK). We owned KD for over four years. During most of that time, the company executed a successful turnaround after its spin-off from IBM. Recently, it has become more challenging to win new business. As a result, the shares have made a full round trip from the low double digits to $40 a share and back. Fortunately, we took some profits at higher prices. Given the difficult environment, including threats from AI, as well as an SEC investigation into the company’s accounting and cash management practices and the departure of its CFO, we exited the balance of our position this quarter. Ultimately, we earned a 17% IRR.”
Kyndryl Holdings, Inc. (NYSE:KD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 41 hedge fund portfolios held Kyndryl Holdings, Inc. (NYSE:KD) at the end of the fourth quarter, up from 24 in the previous quarter. In third quarter of fiscal 2026, Kyndryl Holdings, Inc. (NYSE:KD) reported revenue of $3.9 billion, marking an increase of 3% from the prior year quarter on a reported basis. While we acknowledge the risk and potential of Kyndryl Holdings, Inc. (NYSE:KD) 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 Kyndryl Holdings, Inc. (NYSE:KD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Kyndryl Holdings, Inc. (NYSE:KD) and shared Rewey Asset Management’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.
