Rewey Asset Management, an investment management firm, released its “RAM Smid Composite” investor letter for the first quarter of 2026. A copy of the letter can be downloaded here. The Composite reports a return of 9.21% in Q1 2026, outperforming the Russell 2500 Value Total Return index, which gained 4.77%. The index rose 11.08% until late February but declined later due to the Iran conflict and rising oil prices. The Index’s performance signals a shift in investor focus from larger-cap tech stocks to undervalued and neglected small and mid-cap companies. Despite the market environment, Rewey remains unchanged in its investment philosophy, emphasizing financially robust companies that can withstand market volatility and exploit strategic opportunities. In addition, please check the Composite’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Rewey Asset Management highlighted 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 21, 2026, Kyndryl Holdings, Inc. (NYSE:KD) closed at $14.53 per share. One-month return of Kyndryl Holdings, Inc. (NYSE:KD) was 15.14%, and its shares lost 53.03% over the past 52 weeks. Kyndryl Holdings, Inc. (NYSE:KD) has a market capitalization of $3.33 billion.
Rewey Asset Management stated the following regarding Kyndryl Holdings, Inc. (NYSE:KD) in its Q1 2026 investor letter:
“Kyndryl Holdings, Inc. (NYSE:KD) was our weakest performer in 4Q25, as it initiated a disappointing 2026 revenue growth forecast down 2 to 3%, vs. expectations of turning the corner to revenue growth, albeit a modest 1%. Additionally, the company unexpectedly replaced its CFO and General Counsel and noted it would report a financial reporting control deficiency in its 10K. Despite these setbacks, we think the KD transformation story remains in-tact, and that post IBM-spin revenue will accelerate in 2026 at higher margins. Notably, management reaffirmed its target of generating over $1 billion in free cash flow in fiscal 2028 (March 2028), which implies a potential a 34.2% FCF yield at the quarter-end stock price.”
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 thischeapest AI stock.
In another article, we covered Kyndryl Holdings, Inc. (NYSE:KD) and shared stocks picks from David Einhorn stock portfolio. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
How could anything be worth that much?
The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.
And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.
What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.
In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.
Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…
But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.
And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…
This prediction might not be bold at all:
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