London Company Small-Mid Cap Strategy Remains Confident on Churchill Downs Incorporated (CHDN) Despite Market Fears
Key takeaways
- In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses.
- In its first-quarter 2026 investor letter, The London Company Small-Mid Cap Strategy highlighted stocks like Churchill Downs Incorporated (NASDAQ:CHDN).
- The London Company Small-Mid Cap Strategy stated the following regarding Churchill Downs Incorporated (NASDAQ:CHDN) in its Q1 2026 investor letter:
London Company Small-Mid Cap Strategy Remains Confident on Churchill Downs Incorporated (CHDN) Despite Market Fears Soumya Eswaran Thu, June 11, 2026 at 10:12 PM GMT+7 3 min read CHDN CL=F The London Company released its Q1 2026 investor letter for “The London Company Small-Mid Cap Strategy”. In early 2026, US equities declined, with the Russell 3000 falling 4% and the S&P posting losses. A copy of the letter is available to download here. The year started positively with a broad rally, but sentiment reversed in March due to the Iran conflict. Crude oil prices rose, raising inflation concerns and shifting the Fed s outlook from rate cuts to hikes. Large-cap growth suffered double-digit losses amid weakness in Big Tech and AI concerns in software, while small caps proved resilient. Sector dispersion was extreme; Energy surged over 35%, while Tech fell over 9%. Value, Momentum, and Yield drove returns from a factor perspective. In this environment, the London Company Small-Mid Cap portfolio declined 3.4% (-3.6% net) in the quarter vs. a 2.0% increase in the Russell 2500 Index. The relative underperformance was driven by both sector exposure and stock selection. Structural underweight to Energy and commodity-linked industries was a significant detractor. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, The London Company Small-Mid Cap Strategy highlighted stocks like Churchill Downs Incorporated (NASDAQ:CHDN). Churchill Downs Incorporated (NASDAQ:CHDN) is a US-based racing, online wagering, and gaming company. On June 10, 2026, Churchill Downs Incorporated (NASDAQ:CHDN) stock closed at $88.66 per share. One-month return of Churchill Downs Incorporated (NASDAQ:CHDN) was 2.01%, and its shares lost 11.95% over the past 52 weeks. Churchill Downs Incorporated (NASDAQ:CHDN) has a market capitalization of $6.18 billion.
The London Company Small-Mid Cap Strategy stated the following regarding Churchill Downs Incorporated (NASDAQ:CHDN) in its Q1 2026 investor letter: