Kingdom Capital Advisors, a registered investment advisor, released its first quarter 2026 investor letter. A copy of the letter is available to download here. The first quarter of 2026 delivered a strong performance, despite the market volatility driven by the ongoing conflict in the Middle East. The portfolio thrived by avoiding the significant downturn in AI-driven software stocks and benefiting from several expected catalysts in special situation investments. Kingdom Capital Advisors (KCA Value Composite) returned 8.01% (after fees) in the first quarter, outperforming the Russell 2000 TR at 0.89%, the S&P 500 TR at -4.33%, and the NASDAQ 100 TR at -5.82The composite compounded at 22.81% net annualized versus 4.80% for the Russell 2000, since its inception in January 2022, marking cumulative outperformance of over 115%. The Firm continues to maintain a balanced portfolio of special situation and deep value investments, positioning the composite to deliver strong returns in the future. In addition, please check the Composite’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Kingdom Capital Advisors highlighted stocks such as Net Lease Office Properties (NYSE:NLOP). Net Lease Office Properties (NYSE:NLOP) is a publicly traded real estate investment trust that focuses on acquiring and managing high-quality, single-tenant properties. The one-month return of Net Lease Office Properties (NYSE:NLOP) was -17.01%, and its shares lost 58.42% of their value over the last 52 weeks. On April 7, 2026, Net Lease Office Properties (NYSE:NLOP) stock closed at $11.66 per share, with a market capitalization of $172.73 million.
Kingdom Capital Advisors stated the following regarding Net Lease Office Properties (NYSE:NLOP) in its Q1 2026 investor letter:
“We continue to hold a large position in Net Lease Office Properties (NYSE:NLOP) as the company monetizes its remaining suburban office assets. While the sale price of its largest asset (KBR) was below expectations, we believe the remaining portfolio still offers over 20% of remaining upside, with resolution likely by year-end. Notably, cumulative dividends received have already exceeded our initial cost basis.”
Net Lease Office Properties (NYSE:NLOP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 12 hedge fund portfolios held Net Lease Office Properties (NYSE:NLOP) at the end of the fourth quarter, compared to 14 in the previous quarter. While we acknowledge the risk and potential of Net Lease Office Properties (NYSE:NLOP) 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 Net Lease Office Properties (NYSE:NLOP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Net Lease Office Properties (NYSE:NLOP) and shared Alluvial Capital Management’s views on the company last quarter. 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.
