Miller Value Partners, an investment management company, released its “Deep Value Strategy” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Strategy started the year on a strong note, returning +8.39% (net of fees) compared to the S&P 1500 Value Index’s +0.19% and the S&P 600 Value Index’s +4.32% returns. The strategy gained from ongoing rotation to small-cap value stocks and investments made in the energy sector. The year began with broadening market trends favoring lower-valued, smaller-capitalization equities, though this Value outperformance cycle remains overlooked by investors focused on AI and tech firms. The February onset of war in Iran led to increased energy prices, rising bond yields, and market volatility. The firm believes attractive investment opportunities persist in lower-valued securities and smaller market caps, highlighting companies with robust earnings and cash-flow yields. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Miller Value Deep Value Strategy highlighted JELD-WEN Holding, Inc. (NYSE:JELD). JELD-WEN Holding, Inc. (NYSE:JELD) is a global manufacturer of wood, metal, and composite materials doors, windows, and related building products. On April 16, 2026, JELD-WEN Holding, Inc. (NYSE:JELD) closed at $1.21 per share. One-month return of JELD-WEN Holding, Inc. (NYSE:JELD) was -2.42%, and its shares lost 76.55% over the past 52 weeks. JELD-WEN Holding, Inc. (NYSE:JELD) has a market capitalization of $104.43 billion.
Miller Value Deep Value Strategy stated the following regarding JELD-WEN Holding, Inc. (NYSE:JELD) in its Q1 2026 investor letter:
“Our two largest detractors during the quarter were JELD-WEN Holding, Inc. (NYSE:JELD) and Conduent (CNDT), which were down 49% and 33% during the quarter, respectively. Both companies’ share prices are at deep discounts to what we believe is their long-term fundamental value; we have recently increased our positions in both holdings.
JELD-WEN, is a leading North American and European manufacturer and distributor of interior and exterior doors and windows, undertaking a multi-year transformation. Their plan has similarities to Masonite’s successful transformation ten years ago. Late last year JELD-WEN hired a senior operational executive who was previously at Masonite that will help enhance the transformation plan. The company is undertaking a significant cost reduction program, reducing their North American headcount by more than 10%. In addition, management is phasing in price increases during the second quarter that should help offset inflation and tariff pressures and improve margins later in the year. The company has an extensive asset base (e.g., large real estate portfolio) which provides ongoing monetization opportunities and a margin of safety to the transformation plan. In addition, JELD-WEN North American distribution business is currently under review. Last year, Lowes paid 1.35x revenue to acquire distributor Foundation Building Materials, which in our view suggests the market may be undervaluing JELD-WEN’s distribution business relative to the current market cap. JELD-WEN also has leading market share positions in their European operation, which generates more than $1B in annual revenue. Their European business provides additional operational leverage to a housing recovery and potential monetization proceeds over time. We believe JELD-WEN current share price may reflect a fraction of its long-term fundamental value, with current market cap near $100M versus annual revenues >$3B, under 1x normalized free cash flow yield. With the housing and R&R (repair and restoration) market at an extended trough, near-term revenue headwinds may persist. However, we believe management is making the right enhancements to the business and believe further success on their multi-year transformation plan has the potential to unlock significant equity value over time.”
JELD-WEN Holding, Inc. (NYSE:JELD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 20 hedge fund portfolios held JELD-WEN Holding, Inc. (NYSE:JELD) at the end of the fourth quarter, compared to 24 in the previous quarter. In Q4 2025, JELD-WEN Holding, Inc. (NYSE:JELD) reported revenue of $802 million, down 10% year-over-year. While we acknowledge the risk and potential of JELD-WEN Holding, Inc. (NYSE:JELD) 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 JELD-WEN Holding, Inc. (NYSE:JELD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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.
