Aoris Investment Management, a specialist international equity manager, released its Q2 2026 investor letter for “Aoris International Fund”. A copy of the letter can be downloaded here. The fund invests in high-quality, wealth-generating businesses managed by prudent and capable teams, targeting an annual return of 8–12% after fees over a 5–7-year market cycle. During the June quarter, international equity markets, as represented by the MSCI AC World Accumulation Index ex Australia, returned 13.8% in AUD terms. In local currencies, the return 15.1%. The Portfolio’s Class A (Unhedged) returned 5.7% after fees, underperforming its benchmark by 8.1%, while the Class C (Hedged) gained 6.7%, 8.4% less than its benchmark. The June quarter continued to reflect an unusual year, marked by significant share price increases among AI infrastructure companies, particularly semiconductor producers and data center suppliers. Economic sectors like banks and commodity producers saw gains, but the firm chose not to invest due to their cyclicality and low growth prospects. Conversely, concerns about enterprise software and data companies, challenged by AI, negatively impacted performance. The letter outlined potential incremental opportunities for portfolio companies through AI. Additionally, reviewing the Fund’s top five holdings could help identify its best picks for 2026.
In its Q2 2026 investor letter, Aoris International Fund highlighted Moody’s Corporation (NYSE:MCO). Moody’s Corporation (NYSE:MCO) provides credit ratings, research, and risk analysis tools that help investors and institutions assess financial risk and market conditions. The one-month return of Moody’s Corporation (NYSE:MCO) was -4.59% while its shares traded between $402.28 and $546.88 over the last 52 weeks. On August 13, 2026, Moody’s Corporation (NYSE:MCO) stock closed at approximately $488.42 per share, with a market capitalization of about $84.58 billion.
Aoris International Fund stated the following regarding Moody’s Corporation (NYSE:MCO) in its Q2 2026 investor letter:
“Moody’s Corporation (NYSE:MCO) provides credit opinions, data, and analytics tools to help its customers manage risk. The business is one of two leading global credit-rating agencies, with globally over US$75 trillion of debt carrying a Moody’s rating. Market participants trust Moody’s ratings because of their accuracy, which has been demonstrated over may decades. Furthermore, a Moody’s rating is an industry standard; part of the language of debt capital markets. A corporate issuing debt will lower its interest cost by 30–65 basis points if it purchases a Moody’s rating, for which Moody’s charges a fee less than 1 bps a year.
We had previously owned Moody’s until June 2022, when we sold it due to a lack of strategic direction in Moody’s Analytics, and the cyclically elevated earnings of the ratings business at the time. In the four years since, we have been impressed by how Moody’s has transformed Moody’s Analytics from a disparate collection of acquired businesses into an integrated unit with a clearly articulated direction. Today we see Moody’s Analytics as a strong complement to Moody’s Ratings..…” (Click here to read the full text)
Moody’s Corporation (NYSE:MCO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 95 hedge fund portfolios held Moody’s Corporation (NYSE:MCO) at the end of the first quarter, up from 91 in the previous quarter. While we acknowledge the risk and potential of Moody’s Corporation (NYSE:MCO) 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 Moody’s Corporation (NYSE:MCO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Moody’s Corporation (NYSE:MCO) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 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.
