Rowan Street Capital, an investment management company, released its Q1 2026 investor letter. A copy of the letter can be downloaded here. The Fund’s performance remained stable in the second quarter, with the portfolio declining about 1$ from the first quarter, resulting in a net return of -21% for the second half of 2026. Despite the stock prices of several holdings facing pressure in 2026, the underlying businesses have performed effectively, marking a trend where stock prices may not align with business performance. This divergence is typical in long-term investing, as business performance ultimately drives investment returns. Rowan Street emphasizes patience, conviction, and long‑term business performance over short‑term market enthusiasm. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Rowan Street Capital highlighted Meta Platforms, Inc. (NASDAQ:META). Meta Platforms, Inc. (NASDAQ:META), the parent company of dominant social media platforms, is a multinational technology company that develops products to connect people. On July 31, 2026, Meta Platforms, Inc. (NASDAQ:META) closed at $556.71 per share. The one-month return for Meta Platforms, Inc. (NASDAQ:META) was -7.26%, and its shares lost 28.29% over the past 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $1.42 trillion.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q2 2026 investor update:
“Meta Platforms, Inc. (NASDAQ:META) delivered another exceptional first half of 2026. Revenue grew 33% year over year to $56.3 billion in the first quarter, followed by another 28% increase to $60.8 billion in the second quarter. First-half revenue reached approximately $117 billion, while trailing twelve-month revenue surpassed $228 billion, up 26% year over year. Meta’s Family of Apps now serves approximately 3.6 billion people each day.
Perhaps most encouraging, the company’s AI investments are already producing measurable results across engagement and advertising. Instagram time spent grew at a double-digit rate, while Facebook video time increased 9%, driven largely by improvements in AI-powered recommendations. At the same time, ad impressions increased 14% and the average price per ad rose 12%, helping Family of Apps advertising revenue grow 27% during the second quarter….” (Click here to read the full text)
Meta Platforms, Inc. (NASDAQ:META) holds 5th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 262 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of the first quarter, compared to 256 in the previous quarter. Meta Platforms, Inc. (NASDAQ:META) reported total Q1 2026 revenue of $56.3 billion, up 33% or 29% on a constant currency basis. While we acknowledge the risk and potential of Meta Platforms, Inc. (NASDAQ:META) 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 Meta Platforms, Inc. (NASDAQ:META) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Meta Platforms, Inc. (NASDAQ:META) and shared the list of high growth wide moat stocks to buy. 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.
