The London Company, an investment management firm, recently released its first-quarter 2026 investor letter for its “The London Company Income Equity Strategy”. The letter discussed the performance of US equities in early 2026, highlighting a decline in the Russell 3000 and S&P due to market sentiment shifting in March amidst the Iran conflict. The London Company Income Equity portfolio managed to outperform the Russell 1000 Value Index, returning 4.4% (4.2% net) this quarter.
One of the top holdings mentioned in the investor letter was Dominion Energy, Inc. (NYSE:D), a leading utility company in the US that provides regulated electricity and natural gas services. The company’s stock price closed at $66.25 per share on June 9, 2026, with a one-month return of 5.63% and a 19.22% gain over the past 52 weeks. The London Company increased its position in Dominion Energy, Inc., citing the company’s consistent regulated earnings, long-term demand growth potential from data center expansion, attractive dividend payout, and defensive nature.
While Dominion Energy, Inc. is not on the list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026, it is held by 37 hedge fund portfolios at the end of the first quarter. The London Company believes in the potential of Dominion Energy, Inc. as an investment, but also sees greater upside potential and less downside risk in certain AI stocks. For investors looking for an undervalued AI stock with significant growth potential, they can refer to the London Company’s free report on the best short-term AI stock.
Overall, The London Company Income Equity Strategy’s investor letter for the first quarter of 2026 provides valuable insights into the market environment, the performance of their portfolio, and their top holdings like Dominion Energy, Inc. Investors can download the full letter for more details on the firm’s investment strategy and outlook for the future.
