Kingdom Capital Advisors, a registered investment advisor, released its first quarter 2026 investor letter. A copy of the letter is available to download here. The first quarter of 2026 delivered a strong performance, despite the market volatility driven by the ongoing conflict in the Middle East. The portfolio thrived by avoiding the significant downturn in AI-driven software stocks and benefiting from several expected catalysts in special situation investments. Kingdom Capital Advisors (KCA Value Composite) returned 8.01% (after fees) in the first quarter, outperforming the Russell 2000 TR at 0.89%, the S&P 500 TR at -4.33%, and the NASDAQ 100 TR at -5.82The composite compounded at 22.81% net annualized versus 4.80% for the Russell 2000, since its inception in January 2022, marking cumulative outperformance of over 115%. The Firm continues to maintain a balanced portfolio of special situation and deep value investments, positioning the composite to deliver strong returns in the future. In addition, please check the Composite’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Kingdom Capital Advisors highlighted stocks such as Ziff Davis, Inc. (NASDAQ:ZD). Ziff Davis, Inc. (NASDAQ:ZD) is a digital media and internet company. On April 7, 2026, Ziff Davis, Inc. (NASDAQ:ZD) closed at $42.99 per share. One-month return of Ziff Davis, Inc. (NASDAQ:ZD) was 5.65%, and its shares gained 22.56% over the past 52 weeks. Ziff Davis, Inc. (NASDAQ:ZD) has a market capitalization of $1.62 billion.
Kingdom Capital Advisors stated the following regarding Ziff Davis, Inc. (NASDAQ:ZD) in its Q1 2026 investor letter:
“We also generated gains in shorter-duration positions, including Ziff Davis, Inc. (NASDAQ:ZD) (driven by a business divestiture) and Kodak (KODK) (supported by improving profitability and balance sheet strength). These situations reflect our belief that it is worth our time to pursue opportunities in less-followed areas of the market.”
Ziff Davis, Inc. (NASDAQ:ZD) 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 Ziff Davis, Inc. (NASDAQ:ZD) at the end of the fourth quarter, compared to 27 in the previous quarter. While we acknowledge the risk and potential of Ziff Davis, Inc. (NASDAQ:ZD) 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 Ziff Davis, Inc. (NASDAQ:ZD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ziff Davis, Inc. (NASDAQ:ZD) and shared the list of best performing cybersecurity stocks in 2025. 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.
