London Company Income Equity Strategy Reduced TE Connectivity Ltd. (TEL) Holdings for Strategic Positioning

London Company Income Equity Strategy Reduced TE Connectivity Ltd. (TEL) Holdings for Strategic Positioning

Tue, August 18, 2026 at 3:58 PM GMT+3 3 min read

The London Company, an investment management company, released its second-quarter 2026 investor letter for its "The London Company Income Equity Strategy". A copy of the letter can be downloaded here. U.S. equities rebounded in Q2, with the Russell 3000 rising 15.4% and the S&P 500 achieving its best quarter since 2020, driven by AI infrastructure spending and strong earnings. The momentum intensified in late June following a U.S.-Iran peace deal that lowered oil prices. Technology, initially weak, emerged as a market leader thanks to a semiconductor rebound, while energy and defensive sectors lagged. Despite positive indicators around AI and economic resilience, headwinds such as negative cash flow in major tech firms, geopolitical uncertainties, and high valuations raise concerns about future market performance. The portfolio returned 12.3% (12.1% net) during the quarter compared to a 13.9% increase in the Russell 1000 Value Index. Stock selectin was a drag on relative performance, partially offset by positive sector positioning. Looking ahead, given elevated valuations and low dividend yields, modest equity returns are anticipated. A focus on quality and active management is suggested as a prudent investment strategy. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its Q2 2026 investor letter, The London Company Income Equity Strategy highlighted TE Connectivity Ltd. (NYSE:TEL). TE Connectivity Ltd. (NYSE:TEL) is a technology company that focuses on designing and manufacturing connectivity and sensor solutions. On August 17, 2026, TE Connectivity plc (NYSE:TEL) closed at $217.38 per share, reflecting a market capitalization of $62.93 billion. TE Connectivity plc (NYSE:TEL) posted a one‑month return of 4.00%, while its shares gained 6.88% over the past 52 weeks.

The London Company Income Equity Strategy stated the following regarding TE Connectivity plc (NYSE:TEL) in its Q2 2026 investor letter:

"Reduced: TE Connectivity plc (NYSE:TEL) - We reduced our position in TEL to manage concentrated exposure to the AI and data center infrastructure buildout at the portfolio level. Demand in connectors and a potential automotive recovery remain compelling catalysts, and we continue to hold the name with full conviction in the thesis."

TE Connectivity plc (NYSE:TEL) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 62 hedge fund portfolios held TE Connectivity plc (NYSE:TEL) at the end of the first quarter, compared to 72 in the previous quarter. While we acknowledge the potential of TE Connectivity plc (NYSE:TEL) 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 thebest short-term AI stock.

In another article, we covered TE Connectivity plc (NYSE:TEL) and shared a list of stocks on Jim Cramer's radar. 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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Disclosure: None. This article is originally published at Insider Monkey.