Night Watch Investment Management, an investment management firm, released its first-quarter 2026 investor letter. A copy of the letter is available to download here. In Q1 2026, Night Watch Investment Management LP appreciated by 2.69% net of fees in a volatile environment. The market experiences volatility influenced by narratives, with initial AI disruptions affecting companies, though the portfolio benefited due to limited exposure. Subsequently, the war in Iran led to increased oil prices and corrections in physical businesses. The portfolio strategy emphasizes discovering individual businesses poised for earnings growth and understanding key market drivers to adapt swiftly to changing conditions. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Night Watch Investment Management highlighted Copa Holdings, S.A. (NYSE:CPA). Copa Holdings, S.A. (NYSE:CPA), the flagship carrier of Panama, provides airline passenger, and cargo and mail transportation services. On June 9, 2026, Copa Holdings, S.A. (NYSE:CPA) closed at $135.37 per share. One-month return of Copa Holdings, S.A. (NYSE:CPA) was 15.20%, and its shares gained 24.72% over the past 52 weeks. Copa Holdings, S.A. (NYSE:CPA) has a market capitalization of $5.43 billion.
Night Watch Investment Management stated the following regarding Copa Holdings, S.A. (NYSE:CPA) in its Q1 2026 investor letter:
“Not every position we owned at the start of the Iran war was immune to the level of geopolitical risk. For instance, we had to sell out of our position in Copa Holdings, S.A. (NYSE:CPA), which operates Panama airlines. Panama Airlines is the main connector between North and South America and a strong beneficiary of a potential normalization of travel to Venezuela. They also don’t hedge their fuel exposure, and a potential normalization of Venezuelan oil production would have been very accretive to their earnings. We briefly made money on this following Maduro’s capture, but following the closure of the Strait of Hormuz we had to change our oil outlook and we quickly pivoted, giving up most of our gains. Never own airlines!”
Copa Holdings, S.A. (NYSE:CPA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 26 hedge fund portfolios held Copa Holdings, S.A. (NYSE:CPA) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the potential of Copa Holdings, S.A. (NYSE:CPA) 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.
