Weitz Investment Management, an investment management firm, released its “Large Cap Equity Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund’s Institutional Class returned -12.04% in the quarter, compared to -4.22% for the Bloomberg U.S. 1000 Index. Despite recent performance challenges, the Fund maintains a positive outlook on its holding companies’ growth and business values. The firm anticipates improved returns in the future, although recent results have been frustrating. The Fund continues to focus on its best ideas and plans to actively reshape the portfolio in response to market conditions, potentially increasing cash levels more than in recent years. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Weitz Investment Large Cap Equity Fund highlighted Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s leading manufacturer of integrated circuits and other semiconductor devices. On May 12, 2026, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) closed at $397.28 per share. One-month return of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was 5.91%, and its shares gained 103.98% over the past 52 weeks. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has a market capitalization of $2.06 trillion.
Weitz Investment Large Cap Equity Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2026 investor letter:
“One takeaway from our ongoing portfolio analysis was that we did not have enough exposure to “what could go right?” stocks. Over the years, our team has done extensive work on companies with exceptional or plainly improving business trends. Along the way, we have tried to follow Mr. Buffett’s advice not to “pay a very high price for a cheery consensus” for their stocks. And, in many cases, we have been left in the dust. The “March Madness” market turmoil gave us a chance to own five new “on deck” companies at reasonable-to-good prices across a range of scenarios.
Over time, our investment team has built a deep knowledge base within the semiconductor industry. Three of our five new portfolio additions reside in the semiconductor value chain. The AI data center infrastructure buildout has been “the” theme of the past few years, and it is no stretch to say that ASML, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and NVIDIA have been three of the best companies in the world. Taiwan Semi is the foremost integrated circuit production foundry for leading edge logic chips…” (Click here to read the full text)
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks 6th on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 224 hedge fund portfolios held Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) at the end of the fourth quarter, up from 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 best AI stocks to buy for 2026 according to billionaire David Tepper. 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.
