Longleaf Partners, managed by Southeastern Asset Management, released its first-quarter 2026 investor letter for its “Small-Cap Fund”. A copy of the letter can be downloaded here. The Fund returned -2.72% in the quarter, outperforming the Russell 3000’s -3.96% return and lagging the Russell 2000 Index’s 0.89% and the Russell 2000 Value Index’s 4.96% gains. The market experienced significant sector-wide movements in the quarter driven by perceptions surrounding AI outcomes, alongside complications from the conflict in Iran and escalating private credit risks. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Longleaf Partners Small-Cap Fund highlighted The Boston Beer Company, Inc. (NYSE:SAM). The Boston Beer Company, Inc. (NYSE:SAM) is an alcoholic beverage company known for its Samuel Adams Boston Lager. On June 26, 2026, The Boston Beer Company, Inc. (NYSE:SAM) closed at $191.87 per share, reflecting a market capitalization of $1.99 billion. The Boston Beer Company, Inc. (NYSE:SAM) posted a one-month return of 9.37%, while its shares lost 4.07% over the past 52 weeks.
Longleaf Partners Small-Cap Fund stated the following regarding The Boston Beer Company, Inc. (NYSE:SAM) in its Q1 2026 investor letter:
“The Boston Beer Company, Inc. (NYSE:SAM) – Alcoholic beverage company Boston Beer was a contributor for the quarter as industry data improved compared to last year. Sentiment around the industry appears to be leveling off after two years of headwinds from changes in consumption habits. The company reported solid first quarter results that were highlighted by continued improvement in gross margins. Recent innovation Sun Cruiser is growing volumes rapidly as the brand expands nationwide to take advantage of the sizable runway remaining in the ready-to-drink tea space. The company also continues to make progress in fixing problems at Twisted Tea, their largest brand. Boston Beer remains both an active share repurchaser and attractive acquisition target as alcohol industry consolidation looks to be on the horizon.”
The Boston Beer Company, Inc. (NYSE:SAM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held The Boston Beer Company, Inc. (NYSE:SAM) at the end of the first quarter, compared to 37 in the previous quarter. While we acknowledge the potential of The Boston Beer Company, Inc. (NYSE:SAM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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