London Company Small-Mid Cap Strategy Remains Confident on Churchill Downs Incorporated (CHDN) Despite Market Fears

1 day ago 2

Soumya Eswaran

Thu, June 11, 2026 astatine 10:12 AM CDT 3 min read

The London Company released its Q1 2026 capitalist missive for “The London Company Small-Mid Cap Strategy”. In aboriginal 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. A transcript of the missive is disposable to download here. The twelvemonth started positively with a wide rally, but sentiment reversed successful March owed to the Iran conflict. Crude lipid prices rose, raising ostentation concerns and shifting the Fed's outlook from complaint cuts to hikes. Large-cap maturation suffered double-digit losses amid weakness successful Big Tech and AI concerns successful software, portion tiny caps proved resilient. Sector dispersion was extreme; Energy surged implicit 35%, portion Tech fell implicit 9%. Value, Momentum, and Yield drove returns from a origin perspective. In this environment, the London Company Small-Mid Cap portfolio declined 3.4% (-3.6% net) successful the 4th vs. a 2.0% summation successful the Russell 2500 Index. The comparative underperformance was driven by some assemblage vulnerability and banal selection. Structural underweight to Energy and commodity-linked industries was a important detractor. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, The London Company Small-Mid Cap Strategy highlighted stocks similar Churchill Downs Incorporated (NASDAQ:CHDN). Churchill Downs Incorporated (NASDAQ:CHDN) is simply a US-based racing, online wagering, and gaming company. On June 10, 2026, Churchill Downs Incorporated (NASDAQ:CHDN) banal closed astatine $88.66 per share. One-month instrumentality of Churchill Downs Incorporated (NASDAQ:CHDN) was 2.01%, and its shares mislaid 11.95% implicit the past 52 weeks. Churchill Downs Incorporated (NASDAQ:CHDN) has a marketplace capitalization of $6.18 billion.

The London Company Small-Mid Cap Strategy stated the pursuing regarding Churchill Downs Incorporated (NASDAQ:CHDN) successful its Q1 2026 capitalist letter:

Churchill Downs Incorporated (NASDAQ:CHDN) – CHDN fell arsenic determination gaming gross softened and authorities concerns astir i-gaming continued. We judge these concerns are overdone and enactment that CHDN has responded rationally, buying backmost shares connected weakness. CHDN has beardown tailwinds up of the upcoming Derby, and the institution has the optionality to make worth done the imaginable merchantability of its determination casino portfolio."

Wells Fargo Raises Churchill Downs (CHDN) Target, Sees Stable Gaming Trends Into 2026

Churchill Downs Incorporated (NASDAQ:CHDN) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 52 hedge money portfolios held Churchill Downs Incorporated (NASDAQ:CHDN) astatine the extremity of the archetypal quarter, up from 50 successful the erstwhile quarter. While we admit the imaginable of Churchill Downs Incorporated (NASDAQ:CHDN) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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