Middle Coast Investing, an investment advisor firm, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The letter explores the concept of ‘meme’ introduced by Richard Dawkins and its impact on modern stock market trends. It highlights how memes, such as Large Language Models (LLMs), artificial intelligence (AI), rising gas prices, private credit, and automated driving, play a crucial role in shaping trading decisions and driving quick ideological changes. However, Investment decisions should not be driven by current news cycles or fads, but rather focus on businesses that are resilient in tough times and capable of leveraging their advantages. These principles require discipline, especially in a volatile market environment. The US portfolio returned -3.9% in the quarter vs. -4.6% for the S&P 500, Core U.S. portfolios returned -4.3% vs the Russell 2000’s 0.6% return, S&P 600’s 3.1%, and Nasdaq’s -7.1% returns. Additionally, European Portfolios returned -2.9% during the same period. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Middle Coast Investing highlighted stocks like F&G Annuities & Life, Inc. (NYSE:FG). F&G Annuities & Life, Inc. (NYSE:FG) is a leading aviation leasing company headquartered in Dublin, Ireland. On April 16, 2026, F&G Annuities & Life, Inc. (NYSE:FG) closed at $26.30 per share. One-month return of F&G Annuities & Life, Inc. (NYSE:FG) was 14.31%, and its shares lost 22.54% over the past 52 weeks. F&G Annuities & Life, Inc. (NYSE:FG) has a market capitalization of $3.66 billion.
Middle Coast Investing stated the following regarding F&G Annuities & Life, Inc. (NYSE:FG) in its Q1 2026 investor letter:
“F&G Annuities & Life, Inc. (NYSE:FG) usually trades based on its liabilities – i.e. how attractive its annuities and life insurance policies look to customers, and how much pricing leeway that leaves the company to make money on. Where interest rates are set becomes a driving factor.
But more recently, investors are worried about the company’s assets. It partners with Blackstone to invest in ‘alternatives’, and included in alternatives is private credit. There is fear that F&G’s considerable book value – $33.26/share, or $44.48/share if you include accumulated losses that will not reflect if F&G holds its positions to close– is inflated by bad underwriting. Even if not inflated, the returns on alternatives have been less than F&G expected initially, and it has finally adjusted its expectations.
It’s hard to know what’s on the company’s books as an outside investor. We can see that the company has announced a new, increased buyback program, including a programmatic buying plan, and that its CEO has bought shares (again) recently.”
Insurance house, car and family health live concept. The insurance agent presents the toys that symbolize the coverage.
F&G Annuities & Life, Inc. (NYSE:FG) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 28 hedge fund portfolios held F&G Annuities & Life, Inc. (NYSE:FG) at the end of the fourth quarter, up from 21 in the previous quarter. While we acknowledge the risk and potential of F&G Annuities & Life, Inc. (NYSE:FG) 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 F&G Annuities & Life, Inc. (NYSE:FG) 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.
