Eagle Capital Management, an investment management company, released its first quarter 2026 investor letter. A copy of the letter is available to download here. The letter notes that individual stocks and subsectors are now more reactive to sentiments, reducing market efficiency but creating opportunities to add value. Over the last decade, multi-asset managers, or pods, have grown significantly, operating with leverage, tight risk controls, and quickly cutting losers, often relying on earnings momentum. Growth managers have outperformed value managers, attracting flows; retail investors increasingly chase momentum, reducing overall diversity and amplifying momentum’s influence. It’s more valuable to find controversial or underexplored assets early and benefit as earnings grow. Eagle has capitalized on this trend, expecting continued opportunities. Investments should consider probabilities, building portfolios for various outcomes rather than betting on one, which allows for compound growth. The Strategy is generating strong long-term absolute returns. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Eagle Capital Management highlighted stocks like EQT Corporation (NYSE:EQT). EQT Corporation (NYSE:EQT) is a leading natural gas producer headquartered in Pittsburgh, Pennsylvania. On May 20, 2026, EQT Corporation (NYSE:EQT) closed at $57.83 per share. One-month return of EQT Corporation (NYSE:EQT) was -1.87%, and its shares gained 3.84% over the past 52 weeks. EQT Corporation (NYSE:EQT) has a market capitalization of $36.17 billion.
Eagle Capital Management stated the following regarding EQT Corporation (NYSE:EQT) in its Q1 2026 investor letter:
“EQT Corporation (NYSE:EQT) is the largest pure play U.S. natural gas producer. The company has long– teens in the lived assets, with decades of inventory. It also has a low– cost structure due to its enviable position in the Marcellus shale and captive pipeline assets. Management has an excellent track record of making wise strategic and capital allocation decisions. Despite selling a commodity product, EQT is a high quality business with operating margins exceeding those of 80 90% of S&P 500 companies. Natural gas in the U.S. trades at a wide discount to global prices. The combination of the inflection in U.S. electricity demand, LNG export growth, and disruption in the Middle East may narrow this discount over the next 5 10 years. We expect EPS growth in the mid teens.”
