Greenlight Capital , an investment management firm, recently released its Q3 2026 investor letter. A copy of the letter can be downloaded here . The funds returned -3.3% in the third quarter of 2026, compared with a 2.3% gain for the S&P 500, bringing their year-to-date return to -1.5% against the index's 12.7% advance. The disappointing performance reflected weakness across the fund's long portfolio, which declined 8.5%, while its short portfolio gained 7.1%. Several holdings fell between 10% and 25% without identifiable company-specific catalysts. A significant portion of the letter focused on the economics of artificial intelligence. The firm estimated that current worldwide end-user AI revenue is probably below $100 billion, compared with the approximately $30 trillion total addressable market claimed by some industry participants. It also highlighted the intense competition among AI providers, the availability of open-source models, and the possibility that substantial capital could be destroyed during the infrastructure buildout. The macro portfolio lost 2.0% during the quarter, bringing its year-to-date decline to 6.0%, largely because the fund's position anticipating Federal Reserve rate cuts moved against it. Greenlight reduced that position by one-third for risk-management purposes. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Greenlight Capital highlighted stocks like Fluor Corporation (NYSE: FLR ). Fluor Corporation (NYSE:FLR) is an engineering and construction company that provides project management, engineering, procurement, and construction services to clients in various industries. The one-month return of Fluor Corporation (NYSE:FLR) was approximately -6.0%. Its 52-week trading range is between $39.33 and $58.35. On November 2nd, 2026, Fluor Corporation's (NYSE:FLR) closing price is $46.38, and its market capitalization is $6.42 billion.
Greenlight Capital discussed Fluor Corporation (NYSE:FLR) in the context of AI's potential impact on its portfolio:
"Our answer was to assess how the companies in our portfolio are being, or may eventually be, affected by the widespread adoption of AI. We highly doubt that it will disrupt the core businesses of our largest positions. AI will not replace construction (Fluor, FLR), and we believe the same holds true for nearly every company in our long portfolio. There is, of course, an opportunity for all these businesses to utilize AI to improve operations and efficiency. In fact, we expect many of them to benefit."
Fluor Corporation (NYSE:FLR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . As per our database, 68 hedge fund portfolios held Fluor Corporation (NYSE:FLR) at the end of the second quarter, which was 55 in the previous quarter. While we acknowledge the risk and potential of Fluor Corporation (NYSE:FLR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so 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 Fluor Corporation (NYSE:FLR) and shared the list of stocks beating Wall Street's earnings expectations. 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 .
