This report details Vulcan Value Partners' Q1 2026 Large Cap Composite performance, highlighting new acquisitions in SAP and ServiceNow, key disposals, and a detailed analysis of holdings like Salesforce, Ryan Specialty Holdings, Ares Management, TPG, and Microsoft. The firm addresses AI disruption concerns across its portfolio, emphasizing long-term value and strategic positioning.

The widespread deployment of AI is highlighting significant resource limitations, particularly in power supply. BlackRock technology investors advocate for a nuanced investment approach, moving beyond general AI trends to focus on specific stock selections. The growing demand for energy to support AI infrastructure necessitates a reevaluation of operational models, with future developments potentially transforming AI power and scalability.

Pampa Energía is positioned as a favorable investment in Argentina's energy sector. Despite recent increases in oil prices, the company's shares have shown relative stability compared to its competitors due to its diverse energy portfolio, including gas and electricity. The diminishing risk associated with sub-$60 oil prices, coupled with investments in Vaca Muerta, enhances its attractiveness. As the energy sector gains momentum, Pampa Energía's strong market presence suggests potential for significant growth.

U.S. REITs have recently hit new all-time highs, signaling a shift from recovery to an expansion phase in the real estate market. This milestone, achieved after 1,078 trading days, suggests that commercial real estate has already undergone a significant valuation reset, unlike many other markets. These new highs are not an indication of a late-cycle peak but rather an early sign of a flourishing real estate cycle, offering attractive valuations compared to previous cycles.

This analysis delves into Affiliated Managers Group (AMG) as a robust, investment-grade entity. It highlights the appealing nature of its baby bonds, which trade below par and offer yields up to 7.69%, surpassing other long-duration bonds. The potential for capital appreciation, coupled with AMG's stable financial standing and limited refinancing incentives, positions these bonds as a compelling investment. The discussion covers AMG's significant assets and debt, underscoring its solid market presence and the strategic value of its fixed-income offerings.

Onchain oil perpetuals have seen explosive growth, surging over 100x in six months, with daily trading volumes peaking at $1.7 billion by April 2026. This rapid expansion highlights a significant trend in decentralized derivatives. During periods of heightened geopolitical risk, traders were observed paying an extraordinary 400% annualized funding cost to short oil prices, a phenomenon driven by specific crypto oil perp mechanisms and arbitrage strategies related to monthly contract rolls. New protocols are now emerging to mitigate the volatility of these funding rates, offering innovative hedging solutions for this burgeoning market.

Kimbell Royalty Partners continues to be a strong buy, offering stability and a high dividend yield. Despite insider selling and technical concerns, its valuation is attractive, with a target price of $20.87. The company's Q4 2025 revenue grew 24% year-over-year, showcasing strong operational leverage. KRP's low-cost royalty model and healthy balance sheet position it well to capitalize on market volatility and potential oil price increases.

Equity Lifestyle Properties is rated a "Hold" due to its balanced profile of steady income and constrained growth potential. The company's 2024 FFO guidance remains consistent, supported by strong mobile home performance, while its RV/marina segments face seasonal challenges. Strategic cost management, including reduced insurance premiums, helps mitigate these pressures. ELS maintains a robust financial position with low debt and a reliable dividend, justifying its premium valuation through fundamental resilience.