Impax Asset Management, an investment management firm based in London, specializing in sustainable investing, released its first-quarter 2026 investor letter for its “Impax Global Environmental Markets Fund”. A copy of the letter is available to download here. The Fund stood resilient in the quarter by outperforming its primary benchmark, the MSCI ACWI index. The stock selection in Information Technology (IT), along with businesses with strong earnings and Materials, drove the performance in a volatile environment. Global equity markets started the year on a positive note, but finished lower due to a risk-off environment. In this landscape, the firm’s emphasis is on solutions such as renewable energy to improve energy security and efficiency, as well as on more efficient grids, power storage, and technologies that reduce energy intensity. In addition, please check the firm’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Impax Global Environmental Markets Fund highlighted stocks like Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions, holding dominant positions in software, cloud infrastructure, generative AI, and gaming. On June 2, 2026, Microsoft Corporation (NASDAQ:MSFT) closed at $441.31 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was 6.61%, and its shares lost 4.86% over the past 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $3.28 trillion.
Impax Global Environmental Markets Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) (Cloud Computing, US) sold off as investors expressed worries about AI-related infrastructure spending and companies’ ability to monetise these investments. The market responded poorly to results, despite Microsoft delivering another very strong quarter with top and bottom-line beats.”
Microsoft Corporation (NASDAQ:MSFT) ranks second on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 282 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the first quarter, compared to 312 in the previous quarter. In the third quarter of fiscal 2026, Microsoft Corporation (NASDAQ:MSFT) reported revenue of $82.9 billion, marking an increase of 18% and 15% in constant currency. While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) 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 the best short-term AI stock.
