Yahoo Finance
The London Companyreleased its Q1 2026 investor letter for “The London Company Small-Mid 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 todownload 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, while small caps proved resilient.
Sector dispersion was extreme; Energy surged over 35%, while Tech fell over 9%.
Value, Momentum, and Yield drove returns from a factor perspective.
In this environment, the London Company Small-Mid Cap portfolio declined 3.4% (-3.6% net) in the quarter vs.
a 2.0% increase in the Russell 2500 Index.
The relative underperformance was driven by both sector exposure and stock selection.
Structural underweight to Energy and commodity-linked industries was a significant detractor.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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