Navigating Volatility: A Strategic Approach to Large Cap Investing

First Quarter 2026 Portfolio Performance Summary

In the initial quarter of 2026, The London Company's Large Cap portfolio recorded a commendable 2.6% gross return (2.4% net), a notable achievement given the Russell 1000 Index's 4.2% decline over the same period. This outperformance underscores the efficacy of the firm's investment philosophy and tactical decisions amidst fluctuating market conditions.

Entegris's Stellar Contribution to Growth

Entegris Inc. (ENTG) emerged as a primary driver of the portfolio's positive returns. The company benefited significantly from an uptick in semiconductor manufacturing utilization rates and an acceleration in demand for AI-driven semiconductor technologies. This strong performance reflects Entegris's crucial role in the expanding technology sector.

Challenges Faced by Visa and Consumer Spending Trends

Conversely, Visa experienced a period of underperformance, primarily attributed to a downturn in consumer confidence and reduced spending projections. Additionally, concerns surfaced regarding the potential for artificial intelligence to disrupt established competitive advantages within the payments industry, adding further pressure on the stock.

Strategic Divestment of Equitable Holdings

The decision was made to divest from Equitable Holdings (EQH) after the security triggered the portfolio's soft stop-loss review criteria. A lack of insider buying activity, which typically signals confidence from within the company, coupled with an evaluation of its intrinsic value, reinforced the choice to exit the position, aligning with the firm's disciplined risk management approach.