The London Company released its Q1 2026 investor letter for “The London Company Large Cap Strategy”.
In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses
A copy of the letter is available to download here. The year started positively with a broad rally, but sentiment reversed in March due to the Iran conflict. Crude oil prices rose, raising inflation concerns and shifting the Fed’s outlook from rate cuts to hikes.
Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI concerns in software. Sector dispersion was extreme; Energy surged over 35%, while Tech fell over 9%. The London Company Large Cap portfolio returned 2.6% (2.4% net) in the quarter, outperforming the Russell 1000’s 4.2% decline, supported by stock selection and sector exposure.