H&R Block (HRB) Uses AI to Drive Value

H&R Block (HRB) Uses AI to Drive Value

Tue, September 15, 2026 at 7:45 PM GMT+3 3 min read

• HRB -0.50%

Alluvium Asset Management, an asset management company, released its "Conventum – Alluvium Global Fund" second-quarter 2026 investor letter. The letter can be downloaded here. The second quarter reflected a sharp shift from geopolitical uncertainty and oil market volatility to a powerful equity rally led by semiconductor companies. Despite the broader market strength, the Fund declined 1.4% in EUR terms, 2.2% in USD terms, and 3.9% in AUD terms. Portfolio results were mixed, with Alphabet benefiting from strong Cloud growth, while Robert Half, H&R Block and other holdings posted solid gains. However, cable businesses and several healthcare and consumer holdings weighed on performance. Also, check the fund's top five holdings to see its best picks in 2026.

In its second-quarter 2026 investor letter, Conventum – Alluvium Global Fund highlighted H&R Block, Inc. (NYSE:HRB). H&R Block, Inc. (NYSE:HRB) provides assisted and do-it-yourself (DIY) tax preparation solutions. On September 14, 2026, H&R Block, Inc. (NYSE:HRB) closed at $45.74 per share. Over the past month, H&R Block, Inc. (NYSE:HRB) declined 10.21%, and its shares lost 8.87% over the past 52 weeks. H&R Block, Inc. (NYSE:HRB) has a market capitalization of $5.64 billion, and its stock has traded within a 52-week range of $28.16 and $58.67.

Conventum – Alluvium Global Fund stated the following regarding H&R Block, Inc. (NYSE:HRB) in its Q2 2026 investor letter:

"Last quarter we mentioned in regard to H&R Block, Inc. (NYSE:HRB), the tax agents, that a "SAASpocalypse" did not necessarily apply across the board, and that there was a mispricing opportunity so we bought more. Somewhat ironically, during its results call in early May, management stated that rather than AI replacing its products, it is using AI to build better products which are being well received. After returning 21.3% during the quarter, it now accounts for 4.6% of the Fund. Although it is now trading at a more respectable price, H&R Block achieves high returns on its capital, and trades at double digit cash flow and earnings yields. In no way do we see it as expensive."

H&R Block, Inc. (NYSE:HRB) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held H&R Block, Inc. (NYSE:HRB) at the end of the second quarter which was 35 in the previous quarter. While we acknowledge the potential of H&R Block, Inc. (NYSE:HRB) 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.

In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.