Bell Global Equities Fund, managed by Bell Asset Management , released its Q3 2026 investor letter. The Fund delivered a strong third quarter of 2026, with its Platform Class returning 5.4% and outperforming the MSCI World ex-Australia Index, which gained 1.5%. The result marked one of the strategy's strongest quarters of relative performance, following a challenging period for its Quality at a Reasonable Price (QARP) approach. During the quarter, global markets faced rising bond yields, higher energy prices and geopolitical tensions, while investor enthusiasm for artificial intelligence continued to support mega-cap technology stocks. The fund benefited from renewed strength in companies positioned to support AI infrastructure and advanced computing, while selected software and financial holdings faced pressure from concerns about AI-driven disruption. Portfolio managers also used market weakness to initiate positions in businesses they believed offered attractive valuations and durable growth prospects, including an industrial welding equipment manufacturer and a global off-price retailer. At the same time, they exited certain holdings where acquisition-related risks or deteriorating earnings visibility weakened the investment case. Looking ahead, the managers see encouraging signs that market leadership may be broadening beyond speculative, momentum-driven stocks. Although they cautioned that the shift may not persist, they remain focused on high-quality businesses with sustainable profitability, strong balance sheets, pricing power and durable competitive advantages, believing these characteristics can support long-term returns without requiring a sustained change in market conditions. In addition, please check the Fund's top five holdings to know its best picks in 2026.In its third-quarter 2026 investor letter, Bell Global Equities Fund discussed Tractor Supply Company (NASDAQ: TSCO ). Tractor Supply Company operates rural lifestyle retail stores offering products for livestock, pets, home improvement, agriculture, and outdoor living. The one-month return of Tractor Supply Company (NASDAQ:TSCO) was 5.00%, while its shares traded between $28.36 and $56.94 over the last 52 weeks. On October 28, 2026, Tractor Supply Company (NASDAQ:TSCO) stock closed at approximately $31.61 per share, with a market capitalization of about $17.32 billion.Bell Global Equities Fund stated the following regarding Tractor Supply Company (NASDAQ:TSCO) in its Q3 2026 investor letter:
"We sold Tractor Supply in September following engagements with the company and broader industry peers that reinforced concerns around the near-term earnings outlook. Following disappointing Q2 results, we saw limited visibility on the recovery path for comparable sales and operating margins, with potential store cannibalisation adding to existing challenges. Importantly, higher interest rates, elevated oil prices and a weakening consumer backdrop are likely to prolong these headwinds and delay any meaningful earnings and share price recovery. While we continue to recognise the quality of the franchise, we believe the risk-reward has become less compelling and preferred to redeploy the capital into TJX as noted above."
Dusan Petkovic/Shutterstock.comTractor Supply Company (NASDAQ:TSCO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . As per our database, 54 hedge fund portfolios held Tractor Supply Company (NASDAQ:TSCO) at the end of the second quarter, compared with 46 in the previous quarter. While we acknowledge the risk and potential of Tractor Supply Company (NASDAQ:TSCO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns within a shorter time frame. 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 .In another article , we covered Tractor Supply Company (NASDAQ:TSCO) and shared Jim Cramer'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.READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. This article is originally published at Insider Monkey.
