Rowan Street Capital’s Q1 2026 Investor Letter

Rowan Street Capital, an investment management company, released its Q1 2026 investor letter. The first quarter of 2026 left investors with plenty of concerns. Rising tensions in the Middle East have driven oil prices up, reigniting inflation concerns and delaying a shift to lower interest rates. Markets are narrative-driven, suggesting that high borrowing costs hinder growth, while skepticism grows about the immediate returns of AI. Investors are increasingly favoring energy and cyclical sectors, as they seek stable cash flows. Additionally, there are fears that AI could disrupt software companies, potentially making current leaders obsolete. In this turbulent market landscape, Rowan Street declined 19.8%, compared to a 4.3% decline for the S&P 500. The firm is not happy with the results. Rowan Street invests in a focused group of businesses expected to compound value over the long term, even amid short-term stock price volatility due to higher interest rates and a shift in investor focus. The fundamentals of these businesses remain strong, despite recent declines in stock prices, reflecting changes in price multiples rather than deteriorating business performance. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.

A copy of Rowan Street Capital’s Q1 2026 investor letter can be downloaded here.