Argosy Investors, an investment management company, released its Q1 2026 investor letter. A copy is available to download here. The letter discussed the current transformative investment landscape driven by the AI capex boom. The author expressed skepticism about the durability of the earnings flowing to its market participants and suppliers. The main challenge during capex booms is balancing supply and demand, especially the accelerated shift of AI technologies. While companies benefit from rising volumes and prices, the potential for earnings to be overstated becomes a concern if supply catches up quicker than anticipated. In this backdrop, the firm remains cautious in taking investment decisions. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Argosy Investors highlighted stocks such as FirstService Corporation (NASDAQ:FSV). FirstService Corporation (NASDAQ:FSV) is a Canadian real estate services company that offers residential property management and other essential property services. On June 5, 2026, FirstService Corporation (NASDAQ:FSV) closed at $140.68 per share. One-month return of FirstService Corporation (NASDAQ:FSV) was 7.11%, and its shares lost 20.66% over the past 52 weeks. FirstService Corporation (NASDAQ:FSV) has a market capitalization of $6.47 billion.
Argosy Investors stated the following regarding FirstService Corporation (NASDAQ:FSV) in its Q1 2026 investor letter:
“I also added meaningfully to FirstService Corporation (NASDAQ:FSV). I have a great deal of respect for Jay Hennick, the largest shareholder and founder of FirstService. FirstService manages ~6% of the HOA/managed units in the US, and is the largest player in this space by a significant margin. There is a multi-decade consolidation opportunity in this market, and I believe Hennick’s partnership-based compensation model for acquired businesses is unique and likely to drive outsized performance of the base and acquired businesses over a long arc of time. The company was historically valued as a high-flyer justified by mid-teens growth, and now the valuation is approximately 20x FCF. I think the current price offers a very good entry point for long-term mid-teens returns.”
FirstService Corporation (NASDAQ:FSV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 27 hedge fund portfolios held FirstService Corporation (NASDAQ:FSV) at the end of the first quarter, up from 33 in the previous quarter. While we acknowledge the risk and potential of FirstService Corporation (NASDAQ:FSV) 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 FirstService Corporation (NASDAQ:FSV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FirstService Corporation (NASDAQ:FSV) and shared the list of most oversold Canadian 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.
