Hennessy Fund’s Q2 2026 investor letter for the Hennessy Equity and Income Fund. The letter can be downloaded here. The letter discusses portfolio adjustments, emphasizing alternatives in equity and fixed income markets that can face up to financial uncertainty. The portfolio held companies 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, pushed by AI spending and sturdy earnings, despite cautious sentiment among lower-income households. The focus on high-quality companies with sturdy benefits is expected to yield constructive outcomes as valuation pressures mount, indicating that future market efficiency may hinge on fundamentals rather than speculative trends. The portfolio goals to capitalize on the ignored valuations of high quality firms, presenting important investment alternatives. Also, examine the fund’s high 5 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 main diversified financial providers company focusing on life insurance coverage, annuities, asset management, and retirement options. The Fund disclosed that it offered its place 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 previous month, Equitable Holdings, Inc. (NYSE:EQH) returned 3.90%, but its shares are down 4.97% over the previous 12 months. Equitable Holdings, Inc. (NYSE:EQH) has a market capitalization of $13.67 billion, and its stock has traded within a 52-week vary of $35.19 to $55.15.
Hennessy Equity and Income Fund said 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 checklist 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 finish of the second quarter, which was 42 in the earlier quarter. While we acknowledge the potential of Equitable Holdings, Inc. (NYSE:EQH) as an investment, we believe certain AI shares offer higher upside potential and carry less draw back risk. If you’re wanting for an extraordinarily undervalued AI stock that also stands to benefit considerably from Trump-era tariffs and the onshoring development, see our free report on the best short-term AI stock.