Broyhill Asset Management, a Charlotte-based firm, issued its third-quarter 2026 investor letter. The letter can be downloaded here . The Broyhill Equity Composite decreased by 0.3% in Q3, underperforming the MSCI All Country World Index, which gained 1.7%. For the first nine months of the year, the Composite returned 1.9%, compared to 13.4% for the Index. The quarter was characterized by a strong July, when the Composite rose by 3.3%, despite a significant fall in the semiconductor index. However, technology stocks led in August and September, while other sectors, including consumer staples and industrials, declined, leading to the decline. Broyhill cites rising oil prices, higher interest rates, and competition for capital as reasons to be cautious. The recent performance of Broyhill has been analyzed due to its divergence from the overall market trend. Despite this, the firm is confident in its portfolio's ability to adapt to varying economic conditions. Broyhill is committed to focusing on fundamental drivers and valuations while exploring new opportunities, valuing the trust of its investors and its long-term partners. Also, check the Fund's top five holdings to see its best picks for 2026.
In its Q3 2026 investor letter, Broyhill Asset Management noted that Valvoline Inc. (NYSE: VVV ) detracted from performance during the quarter. Valvoline Inc. (NYSE:VVV) is a US-based automotive preventive maintenance company that offers oil changes, battery, bulb, and wiper replacements; tire rotations; and other maintenance services. On October 22, 2026, Valvoline Inc. (NYSE:VVV) closed at $32.44 per share. Over the past month, Valvoline Inc. (NYSE:VVV) returned 12.17%, and its shares lost 3.77% over the past 52 weeks. Valvoline Inc. (NYSE:VVV) has a market capitalization of $4.14 billion.
Broyhill Asset Management stated the following regarding Valvoline Inc. (NYSE:VVV) in its Q3 2026 investor letter:
"Valvoline Inc.(NYSE:VVV) cost the equity portfolio about 120 basis points, spread across all three months, even as the business kept executing. Fiscal third-quarter same-store sales and earnings beat expectations, and management raised its full-year sales outlook. The pressure is on margin. Gross margin declined for a second straight quarter, and management's outlook implies meaningful compression again in the fourth quarter on higher base oil costs. To offset the pressure from oil costs stemming from the Iran war, management announced an increase to its prices. This not only reflects its pricing power, but we believe is likely to stay in place if base oil reverts to a lower level. We added to the position in September."
Valvoline Inc. (NYSE:VVV) is not on our list of the 40 Most Popular Stocks Among Hedge Funds . According to our database, 44 hedge fund portfolios held Valvoline Inc. (NYSE:VVV) at the end of the second quarter, up from 39 in the previous quarter. While we acknowledge the potential of Valvoline Inc. (NYSE:VVV) 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 .
Valvoline Inc. (NYSE:VVV) was a positive contributor to Broyhill Asset Management's portfolio performance last quarter . 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 .
