Voss Capital, LLC, an investment management company, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned -11.4% and -11.5%, respectively, to investors net of fees and expenses, in the first quarter compared to a +0.9% return for the Russell 2000 Index, +5.0% return for the Russell 2000 Value Index, and -4.3% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 183.2%, and the delta-adjusted exposure was 82.1% as of March 31, 2026. In the first quarter, the economic and political climate led to significant fluctuations in the stock market. Consumer sentiment remains low despite market strength and high growth expectations in a K-shaped economy. Capital flows between semiconductor, AI hardware, and other sectors have shifted market momentum, with record implied volatility, creating a volatile and complex investment environment. In addition, you can check the firm’s top 5 holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Voss Capital highlighted stocks like Sempra (NYSE:SRE). Sempra (NYSE:SRE) is a leading energy infrastructure company in the United States and Mexico that operates through Sempra California, Sempra Texas Utilities, and Sempra Infrastructure segments. On May 29, 2026, Sempra (NYSE:SRE) closed at $89.13 per share. One-month return of Sempra (NYSE:SRE) was -6.60%, and its shares gained 12.98% over the past 52 weeks. Sempra (NYSE:SRE) has a market capitalization of $57.62 billion.
Voss Capital stated the following regarding Sempra (NYSE:SRE) in its Q1 2026 investor letter:
“Voss has accumulated a significant position in Sempra (NYSE:SRE). SRE is a utilities conglomerate that we believe has the opportunity to unlock significant value through simplification. Sempra’s current public structure, dominated by two California utilities that contribute more than half of earnings, masks the rapidly compounding intrinsic value of the fastest growing and largest transmission & distribution (T&D) utility in North America: Oncor Electric in Texas.
SRE trades at a 17.8x NTM P/E multiple, which is in-line with lower-growth regulated peers. This is consolidated valuation fails to account for the dramatically divergent paths of Sempra’s assets.
Oncor: A pure-play regulated wire network operating under a highly constructive Texas regulatory environment, entirely insulated from California politics and wildfire liabilities. Oncor is experiencing unprecedented secular tailwinds from Permian Basin electrification, population growth in D/FW and across central Texas, and a significant upgrade to the state’s transmission infrastructure….” (Click here to read the full text)
Sempra (NYSE:SRE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge fund portfolios held Sempra (NYSE:SRE) at the end of the first quarter, up from 42 in the previous quarter.While we acknowledge the risk and potential of Sempra (NYSE:SRE) 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 Sempra (NYSE:SRE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Sempra (NYSE:SRE) and shared the list of best stocks under $100 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.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center