The first quarter of 2026 presented a challenging landscape for the GreensKeeper Value Fund, which saw an 8.1% decline in returns. This downturn was largely influenced by the outbreak of conflict in the Middle East, leading to a broad market sell-off. However, this period of market weakness was strategically utilized by the fund to reinforce its portfolio. Key adjustments included increasing positions in several established holdings and introducing a new investment in Amadeus IT Group, capitalizing on what was perceived as an attractive valuation. The fund remains steadfast in its philosophy of long-term value investing, emphasizing the importance of discipline and patience during turbulent times, with the belief that intrinsic values will ultimately be recognized by the market.
Detailed Report on Q1 2026 Fund Performance and Key Strategic Moves
In the initial quarter of 2026, global geopolitical instability, particularly the eruption of conflict in the Middle East, prompted a sharp decline across major financial benchmarks, negatively impacting the GreensKeeper Value Fund's performance by 8.1%. This period of market turbulence, however, was identified by the fund as a strategic opportunity to optimize its investment portfolio.
A significant focus was placed on Berkshire Hathaway (BRK.A/B), the fund's largest holding, which had experienced a 7% year-to-date decline and a substantial underperformance against the S&P 500 over the preceding year. Despite this, the fund views Berkshire Hathaway as fundamentally undervalued, a conviction reinforced by the company's resumption of share buybacks and its robust $370 billion cash reserve. The leadership transition to Greg Abel is seen as a positive, bringing a detail-oriented approach aimed at enhancing operational efficiency and driving high-single-digit operating earnings growth, independent of market speculation surrounding AI-driven narratives. This move underscores the fund's commitment to solid, cash-generating businesses over fleeting market trends.
Among the top performers, TVA Group (TVA.B) recorded an impressive 103.8% gain, benefiting from a retroactive revenue adjustment that allowed it to clear all outstanding debt. This Canadian media company, with its dominant audience share in Quebec, is believed to remain undervalued, with potential for its controlling shareholder, Quebecor Inc., to take it private.
Automatic Bank Services Ltd. (ABANF) also performed strongly, achieving a 22.5% increase. Despite regional tensions, it reported robust Q4 transaction growth. The company's plans to implement price increases this year, following investments in computing and cybersecurity, highlight its pricing power derived from strong network effects.
The Hershey Company (HSY) saw a 14.2% rise, as declining cocoa costs alleviated inflationary pressures. Resilient consumer demand and strategic diversification into salty snacks further reinforced the company's strong brand equity and competitive position.
Defense holdings, Lockheed Martin (LMT) and General Dynamics (GD), gained 25% and 2% respectively. This performance reflects sustained global demand for national defense investments and their pivotal roles in the successful Artemis II mission.
Conversely, ICON Plc (ICLR) was the main detractor, falling 39.3% after an internal Audit Committee investigation into revenue recognition practices. The fund considers the market's reaction an overcorrection, anticipating a minor restatement of less than 2% for affected years and no material long-term impact on the company's strong free cash flow. The fund capitalized on this dip to increase its position, confident in ICON's recovery with the improving pharmaceutical environment.
Visa Inc. (V) declined 13.8%, pressured by macro concerns over a global economic slowdown and rising oil prices impacting cross-border travel. However, Visa's exceptional fundamentals and long-term earnings potential ensure its continued high regard within the fund.
A notable new addition to the portfolio was Amadeus IT Group (AMADY), headquartered in Madrid. Amadeus holds a duopoly in global distribution systems (GDS) and Airline IT segments, providing mission-critical software for major airlines. The market's sell-off due to anticipated cyclical headwinds from rising jet fuel prices offered an attractive entry point for this dominant, growing franchise. The fund asserts that Amadeus's powerful network effects and high switching costs make its critical infrastructure resilient to AI-driven disruptions, positioning it for significant long-term value creation through global travel growth.
The GreensKeeper Value Fund is managed by Michael McCloskey, President, Founder & Chief Investment Officer, and Michael Van Loon, Associate Portfolio Manager, who actively seek high-quality companies at attractive valuations, maintaining a disciplined approach to long-term wealth growth.
The GreensKeeper Value Fund's first quarter of 2026 underscores a critical lesson in investing: true value is often revealed during periods of market uncertainty. While short-term fluctuations can be unsettling, they provide astute investors with unique opportunities to acquire robust assets at discounted prices. This quarter's strategy highlights the importance of deep fundamental analysis and unwavering conviction in investment theses, especially when faced with broad market sentiment that may overreact to temporary challenges. It serves as a powerful reminder that patience, discipline, and a clear understanding of intrinsic value are paramount for long-term success, distinguishing resilient portfolios from those swayed by fleeting trends.
