Montaka Global Investments Q1 2026 letter

What happened: In Q1 2026, geopolitical tensions, notably Iran's conflict, drove market volatility. Uber (UBER) saw valuation revisions, while TPG (TPG) faced sector rotation pressures, leading to a 7.72% net loss. Alexander's (ALX) asset sale boosted its strategic position, MKS (MKSI) advanced on sales strength, and Taiwan Semiconductor (TSM) lifted Giverny Capital's portfolio. Oracle (ORCL) traded lower due to growth concerns. Argosy Investors favored Fomento Económico Mexicano (FMX) for growth and income stability. Matrix Service Company (MTRX) was positioned for growth, while Microsoft (MSFT) faced AI disruption concerns. Fiduciary Management bet on Booking Holdings (BKNG) as the largest online travel agency.

Market impact: Tech and growth stocks were particularly affected, with TPG and ORCL underperforming. Defensive plays like ALX and FMX saw interest. Semiconductors, represented by TSM, remained resilient. The Iran conflict led to valuation repricing across sectors. Small and mid-cap stocks, as seen in the performance of MTRX and TPG, were volatile.

What to watch next: Upcoming earnings reports from Uber (Q2 2026, expected July 29), TPG (Q2 2026, expected August 4), and Oracle (Q4 2026, expected November 17) will provide insights into these companies' resilience. The evolution of geopolitical tensions, particularly around Iran, will continue to influence market sentiment. The progress of AI disruption, as seen in MSFT's performance, will be a key tech sector catalyst.