Victory Capital, overseeing the RS Large Cap Value Strategy, released its Q1 2026 investor letter. A copy of the letter can be downloaded here. It’s a value-focused strategy that seeks to invest in solid companies with attractive valuations. Given ongoing market volatility, risk management remains crucial. As patient long-term investors, the firm aims to capitalize on market turmoil and periods of price dislocations. For the three months ending March 31, 2026, the strategy returned 1.08% (gross), 0.95% (net), underperforming the Russell 1000® Value Index, which returned 2.10%. Underperformance stemmed from unfavorable stock selection despite positive sector positioning. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, RS Large Cap Value Strategy highlighted FedEx Corporation (NYSE:FDX) as a newly added position. FedEx Corporation (NYSE:FDX) is a US-based company that focuses on transportation, e-commerce, and business services. On April 24, 2026, FedEx Corporation (NYSE:FDX) closed at $387.98 per share. One-month return of FedEx Corporation (NYSE:FDX) was 13.52%, and its shares gained 83.44% over the past 52 weeks. FedEx Corporation (NYSE:FDX) has a market capitalization of $92.58 billion.
RS Large Cap Value Strategy stated the following regarding FedEx Corporation (NYSE:FDX) in its Q1 2026 investor letter:
“FedEx Corporation (NYSE:FDX) is a globally recognized brand operating a logistics network that delivers packages and freight to individuals and businesses worldwide. We originally initiated a position in FedEx as the company shifted its compensation metrics to focus more heavily on Return on Invested Capital (ROIC). This strategic pivot signaled the potential for improved returns driven by expanded margins and lower capital intensity. Recently, the company’s successful execution of this strategy has contributed to the stock’s outperformance. Additionally, FedEx is approaching the completion of the spin-off of its freight trucking business, a move that will allow both the Express Delivery and Freight segments to optimize their respective paths toward higher ROIC. We continue to hold FedEx, as we believe internal cost savings and disciplined pricing will drive further margin expansion. We expect incremental free cash flow to continue accruing to shareholders through ongoing share repurchases.”
FedEx Corporation (NYSE:FDX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 68 hedge fund portfolios held FedEx Corporation (NYSE:FDX) at the end of the fourth quarter, up from 60 in the previous quarter. While we acknowledge the risk and potential of FedEx Corporation (NYSE:FDX) 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 FedEx Corporation (NYSE:FDX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FedEx Corporation (NYSE:FDX) and shared the list of best stocks to buy from Bill Gates’ 2026 portfolio. 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.
