Bristol Gate Capital Partners , an investment management company, published its Q3 2026 investor letter for the "US Equity Strategy". The letter can be downloaded here . The US Equity Strategy lagged the S&P 500 (+2.3%) in Q3 2026, as declines in industrial and semiconductor-equipment holdings weighed against gains in tech. Despite this relative drag, the strategy continued to outpace the index in terms of dividend growth. Portfolio fundamentals were solid in the quarter, with 21 out of 22 holdings exceeding earnings forecasts, six raising guidance, and several boosting dividends. Key contributors included Microsoft, Cintas, and McKesson, while KLA, Applied Materials, and GE Aerospace negatively impacted performance. Bristol Gate's portfolio remains positioned for long-term compounding via robust balance sheets and cash-flow-funded dividend growth, providing resilience against high interest rates, top-heavy market concentration, and AI credit friction. Also, check the Fund's top five holdings to see its best picks for 2026.
In its Q3 2026 investor letter, Bristol US Equity Strategy highlighted McKesson Corporation (NYSE:MCK) as a leading contributor. McKesson Corporation (NYSE: MCK ). McKesson Corporation (NYSE:MCK) is a leading healthcare services company headquartered in Irving, Texas. On October 30, 2026, McKesson Corporation (NYSE:MCK) closed at $994.58 per share with a market capitalization of $115.96 billion. McKesson Corporation (NYSE:MCK) posted a 1-month return of 8.64% and a 52-week gain of 21.25%, trading within a 52-week range of $723.68 to $1,030.27.
Bristol US Equity Strategy stated the following regarding McKesson Corporation (NYSE:MCK) in its Q3 2026 investor letter:
"McKesson Corporation(NYSE:MCK) rose 13.1% as adjusted earnings per share grew 20%, distribution of GLP-1 medications reached $15 billion in the quarter, up 24% year over year, and management raised its full-year guidance alongside a 15% dividend increase, its tenth consecutive annual raise."
McKesson Corporation (NYSE:MCK) is not on our list of the 40 Most Popular Stocks Among Hedge Funds . As per our database, 77 hedge fund portfolios held McKesson Corporation (NYSE:MCK) at the end of the second quarter which was 73 in the previous quarter. While we acknowledge the risk and potential of MCKESSON CORPORATION (NYSE:MCK) as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than MCK that operates as a critical AI tollboothand stands as the most important company in the world, check out our report about this must-own AI stock .
In another article , we discussed McKesson Corporation (NYSE:MCK) and shared Suncoast Equity Management's views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
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This article is originally published at Insider Monkey .
