Fiduciary Management Inc. (FMI), an independent money management firm, released its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The onset of the Iran war disrupted the stability of Global stock markets in early 2026, with the S&P 500 and MSCI World indices declining 4.33% and 3.57%, respectively, while the Russell 2000 and MSCI EAFE (local, USD) fared a bit better at 0.89%, 0.15%, and -1.24%, respectively. As oil costs rise and the war continues, risk appetites have decreased. Amid this uncertainty, FMI remains confident in its portfolio of high-quality businesses trading at discounts. Energy and defense stocks have recently outperformed, while FMI’s underweight exposure in these sectors and overweight in durables and construction have impacted relative performance. Despite challenges, FMI is committed to its long-standing investment strategy. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, FMI highlighted stocks like Huron Consulting Group Inc. (NASDAQ:HURN). Huron Consulting Group Inc. (NASDAQ:HURN) is a global professional service provider to healthcare, education, and commercial sectors. On April 23, 2026, Huron Consulting Group Inc. (NASDAQ:HURN) closed at $121.83 per share. One-month return of Huron Consulting Group Inc. (NASDAQ:HURN) was -0.66%, and its shares lost 9.18% over the past 52 weeks. Huron Consulting Group Inc. (NASDAQ:HURN) has a market capitalization of $2.02 billion.
FMI stated the following regarding Huron Consulting Group Inc. (NASDAQ:HURN) in its Q1 2026 investor letter:
“Huron Consulting Group Inc. (NASDAQ:HURN) is a leading consulting firm serving hospitals, health systems, and higher education institutions. Decades of successful engagements have earned the company deeply entrenched relationships within its core end markets. While these industries are not typically associated with rapid growth, Huron’s value proposition is squarely aimed at helping organizations navigate an unrelenting stream of business model, regulatory, and technology challenges – pressures that have only intensified. Because these institutions tend to operate with lean internal resources, they consistently rely on outside expertise to work through complex issues, creating a durable and recurring source of demand for Huron’s services. Management sees a substantial opportunity to deepen penetration within the existing customer base over the coming years, and the company’s strategy of broadening its capabilities – both organically and through tuck-in acquisitions – should drive further wallet share gains. In aggregate, we believe Huron can grow its top line in the low double digits annually, comprised of mid-to-upper single-digit organic growth supplemented by a modest contribution from M&A. Combined with a commitment to margin expansion and a consistent track record of share repurchases, we see a credible path to low-to-mid teens earnings per share growth on an annualized basis. Concerns about AI disrupting the consulting model have pressured Huron’s valuation and weighed on the shares. We believe this risk is largely misunderstood. Huron views AI as a revenue opportunity – one it is already pursuing by helping clients develop and implement AI roadmaps – while simultaneously leveraging the technology internally to reduce its own costs. Both efforts are underway. Further reinforcing the company’s resilience, management noted that ~ 2/3rds of 2025 revenue was outcome-based, fixed fee, or recurring in nature, and that its highly skilled consultants delivering mission-critical work for institutions facing disruption are considerably more insulated than other consulting models. At a low-teens forward earnings multiple, we believe the shares offer compelling value relative to the quality and durability of the underlying business.”
Huron Consulting Group Inc. (NASDAQ:HURN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 20 hedge fund portfolios held Huron Consulting Group Inc. (NASDAQ:HURN) at the end of the fourth quarter, compared to 23 in the previous quarter. While we acknowledge the risk and potential of Huron Consulting Group Inc. (NASDAQ:HURN) 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 Huron Consulting Group Inc. (NASDAQ:HURN) 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.
