Merion Road Capital Management, an investment advisor, released its Q1 2026 Investor Letter.
A copy of the letter can be downloaded here
Merion Road Capital Management reported that its Merion Road Small Cap Fund gained 3.1% in the first quarter of 2026, outperforming the Russell 2000, which rose 0.9%. Merion Road’s long-only large-cap portfolio declined 3.7% amid broader market weakness reflected in the S&P 500. The performance in the small-cap fund was supported by strong contributions from holdings, driven by accelerating aerospace demand and margin expansion.
The firm continues to position itself around long-term tailwinds in aerospace, defense, and advanced technologies, citing rising global military spending, ongoing geopolitical tensions, and increasing demand for mission-critical systems as key drivers shaping its constructive outlook despite near-term volatility. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026. In its first-quarter 2026 investor letter, Merion Road Capital Management highlighted stocks like Frequency Electronics, Inc. (NASDAQ:FEIM).