Hennessy Fund's Q2 2026 investor letter for the Hennessy Equity and Income Fund. The letter can be downloaded here. The letter discusses portfolio changes, emphasizing opportunities in equity and fixed income markets that can withstand economic uncertainty. The portfolio held businesses with a 23.0% pre-tax return on invested capital versus 16.1% for the S&P 500. The letter notes a reversal in U.S. equities, driven by AI spending and strong earnings, despite cautious sentiment among lower-income households. The focus on high-quality firms with durable advantages is expected to yield positive outcomes as valuation pressures mount, indicating that future market performance may hinge on fundamentals rather than speculative trends. The portfolio aims to capitalize on the overlooked valuations of quality companies, presenting significant investment opportunities. Also, check the fund's top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, Hennessy Equity and Income Fund highlighted Equitable Holdings, Inc. (NYSE:EQH), a leading diversified financial services company focusing on life insurance, annuities, ******* et management, and retirement solutions. The Fund disclosed that it sold its position in Equitable Holdings, Inc. (NYSE:EQH) during the quarter. On August 31, 2026, Equitable Holdings, Inc. (NYSE:EQH) closed at $50.13 per share. Over the past month, Equitable Holdings, Inc. (NYSE:EQH) returned 3.90%, but its shares are down 4.97% over the past year. Equitable Holdings, Inc. (NYSE:EQH) has a market capitalization of $13.67 billion, and its stock has traded within a 52-week range of $35.19 to $55.15.
Hennessy Equity and Income Fund stated the following regarding Equitable Holdings, Inc. (NYSE:EQH) in its Q2 2026 investor letter:
"Equitable Holdings, Inc. (NYSE:EQH) triggered our soft stop-loss review, and with no insider buying to reinforce conviction, we sold the position. While Equitable continues to generate strong cash flow and return capital in a disciplined manner, the underlying core business has remained inconsistent. Earnings quality is uneven, flows are mixed, and ongoing pressure in the individual life and retirement segments raises concern. Although valuation appears attractive, our confidence in the ability to deliver consistent results and successfully execute a turnaround was lowered."
Equitable Holdings, Inc. (NYSE:EQH) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Equitable Holdings, Inc. (NYSE:EQH) at the end of the second quarter, which was 42 in the previous quarter. While we acknowledge the potential of Equitable Holdings, Inc. (NYSE:EQH) 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