Eagle Capital Management, an investment management company, released its second quarter 2026 investor letter. A copy of the letter can be downloaded here. In the quarter, Eagle Capital Management discussed how enthusiasm around AI capital spending has driven strong S&P 500 earnings growth while also increasing risks from elevated valuations, concentrated demand, and aggressive investment ***** umptions. Eagle remains a strong believer in AI but prefers constructing a portfolio that can perform across multiple outcomes rather than relying on one forecast. The firm believes current earnings can overstate underlying economics because semiconductor equipment is depreciated over several years, while free cash flow growth remains much weaker. It also expects competition and additional capacity across AI labs, hyperscalers, and semiconductors to eventually create winners and losers. These dynamics are encouraging Eagle to recycle capital toward attractive opportunities outside the most crowded AI trades while maintaining selective exposure to high quality beneficiaries. The portfolio trades at a 20% market discount with faster expected EPS growth. Please review the Strategy's top five holdings for key selections.
In its second-quarter 2026 investor letter, Eagle Capital Management highlighted Alcoa Corporation (NYSE:AA). Alcoa Corporation (NYSE:AA) engages in the bauxite mining, alumina refining, aluminum production, and energy generation business. On August 19, 2026, Alcoa Corporation (NYSE:AA) closed at $51.54 per share. The one-month return of Alcoa Corporation (NYSE:AA) was 13.85% and its shares gained 74.65% over the past 52 weeks. Alcoa Corporation (NYSE:AA) has a market capitalization of $13.6 billion with a 52-week trading range between $28.92 - $84.38.
Eagle Capital Management stated the following regarding Alcoa Corporation (NYSE:AA) in its Q2 2026 investor letter:
"The energy & metals companies we own benefit from favorable multiyear supply/demand outlooks, management teams that are good capital allocators, and ***** et bases that are well-positioned on the global cost curve. Alcoa Corporation (NYSE:AA) is a global producer of aluminum and alumina. For more than two decades, Chinese aluminum supply was relentless, swamping the market. The country has imposed smelter caps and is no longer adding net capacity. As global demand grows, new capacity must be added elsewhere at higher build costs. Incentivizing this capacity requires higher prices to earn a return. We own Alcoa at a wide discount to replacement cost, and this shift higher in aluminum and alumina prices is a powerful tailwind for earnings power. We expect EPS growth in the mid-teens over the next several years."

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