Eagle Point Capital, an investment firm, released its “Spring 2026 Portfolio Update” investor letter. A copy of the letter can be downloaded here. The firm reported a resilient performance for the quarter while emphasizing its long-term, fundamentals-driven strategy, noting that detailed quarterly returns would be reflected in client brokerage statements but reaffirming steady compounding aligned with its historical approach. The firm attributed its stability to a disciplined focus on “cockroach-like” businesses, durable, mission-critical companies that benefit from timeless human needs, strong physical infrastructure, and limited susceptibility to rapid technological disruption. Despite an increasingly volatile and unpredictable macro environment shaped by geopolitical conflicts, inflation shocks, and rapid technological shifts like AI, Eagle Point expressed a constructive market outlook, arguing that uncertainty and periodic downturns create opportunities for long-term investors. The firm believes its emphasis on resilient industries, fragmented customer bases, and essential services positions the portfolio to withstand disruption and continue compounding over time, even as markets face ongoing volatility and structural change. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Eagle Point Capital highlighted stocks like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading contract chip manufacturer, producing advanced semiconductors for major global technology companies. The one-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 4.95% while its shares traded between $190.03 and $421.97 over the last 52 weeks. On May 18, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock closed at approximately $395.95 per share, with a market capitalization of about $2.00 trillion.
Eagle Point Capital stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is beloved by investors because it dominates the cutting edge of their industries. But the technology in its field is changing rapidly. It is unclear if it will be able to change with it. They must continuously disrupt and reinvent themselves before their competitors do. The odds are that eventually they’ll stumble. No one bats one thousand forever. History is littered with companies, like Intel, that looked dominant but could not adapt as their environment changed.
Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is in 6th position on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 224 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the fourth quarter, which was 194 in the previous quarter. While we acknowledge the risk and potential of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) 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 Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and shared the list of richest hedge fund managers in the world and their top stock picks. 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.
