The London Company released its Q1 2026 investor letter for “The London Company Large Cap Strategy”. In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. A copy of the letter is available to download here. The year started positively with a broad rally, but sentiment reversed in March due to the Iran conflict. Crude oil prices rose, raising inflation concerns and shifting the Fed’s outlook from rate cuts to hikes. Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI concerns in software. Sector dispersion was extreme; Energy surged over 35%, while Tech fell over 9%. The London Company Large Cap portfolio returned 2.6% (2.4% net) in the quarter, outperforming the Russell 1000’s 4.2% decline, supported by stock selection and sector exposure. The strategy’s quality, high active share, and downside resilience were effective in an unsettled market. The firm views the recent setback as a pause in a multi-year cycle, not a reversal. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, The London Company Large Cap Strategy highlighted Visa Inc. (NYSE:V). Visa Inc. (NYSE:V) is a multinational financial services company known for its payment technology network that offers credit, debit, and prepaid card products and other services. On June 10, 2026, Visa Inc. (NYSE:V) closed at $322.96 per share. One-month return of Visa Inc. (NYSE:V) was 0.14%, and its shares lost 13.04% over the past 52 weeks. Visa Inc. (NYSE:V) has a market capitalization of $614.19 billion.
The London Company Large Cap Strategy stated the following regarding Visa Inc. (NYSE:V) in its Q1 2026 investor letter:
“Visa Inc. (NYSE:V) – V underperformed on weaker consumer confidence, lower spending expectations, and additional pressure that AI could pressure moats in payment businesses. We expect resilience across economic cycles and view the stock as attractively valued relative to both the market and fundamentals.”
Visa Inc. (NYSE:V) ranks 9th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 181 hedge fund portfolios held Visa Inc. (NYSE:V) at the end of the first quarter, compared to 184 in the previous quarter. In the second quarter of fiscal 2026, Visa Inc.’s (NYSE:V) net revenue grew 17% year-over-year to $11.2 billion and EPS increased 20%. While we acknowledge the risk and potential of Visa Inc. (NYSE:V) 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 Visa Inc. (NYSE:V) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Visa Inc. (NYSE:V) and shared the list of good stocks to invest in. 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.
