Eagle Capital Management, an investment management company, released its second quarter 2026 investor letter. A copy of the letter can be downloaded here. In the quarter, Eagle Capital Management discussed how enthusiasm around AI capital spending has driven strong S&P 500 earnings growth while also increasing risks from elevated valuations, concentrated demand, and aggressive investment assumptions. Eagle remains a strong believer in AI but prefers constructing a portfolio that can perform across multiple outcomes rather than relying on one forecast. The firm believes current earnings can overstate underlying economics because semiconductor equipment is depreciated over several years, while free cash flow growth remains much weaker. It also expects competition and additional capacity across AI labs, hyperscalers, and semiconductors to eventually create winners and losers. These dynamics are encouraging Eagle to recycle capital toward attractive opportunities outside the most crowded AI trades while maintaining selective exposure to high quality beneficiaries. The portfolio trades at a 20% market discount with faster expected EPS growth. Please review the Strategy’s top five holdings for key selections.
In its second-quarter 2026 investor letter, Eagle Capital Management highlighted EQT Corporation (NYSE:EQT). EQT Corporation (NYSE:EQT) engages in the exploration, production, gathering, and transmission of hydrocarbons and natural gas. On August 19, 2026, EQT Corporation (NYSE:EQT) closed at $53.64 per share. One-month return of EQT Corporation (NYSE:EQT) was 0.47% and its shares gained 3.05% over the past 52 weeks. EQT Corporation (NYSE:EQT) has a market capitalization of $33.55 billion with a 52-week trading range between $47.94 – $68.24.
Eagle Capital Management stated the following regarding EQT Corporation (NYSE:EQT) in its Q2 2026 investor letter:
“The energy & metals companies we own benefit from favorable multiyear supply/demand outlooks, management teams that are good capital allocators, and asset bases that are well-positioned on the global cost curve. EQT Corporation (NYSE:EQT) is the largest U.S. pure-play natural gas producer. Like ConocoPhillips, it has low-cost, long-lived assets and management with an excellent track record allocating capital. Its position in the Marcellus shale and internally owned pipeline assets give it a distinctive position compared to most peers. It earns good margins even when prices are low. In the coming years, as LNG export capacity is added and U.S. electricity demand increases due to data center buildouts, we think supply and demand are likely to tighten. Combined with moderate production growth and a large free cash flow yield, it offers good EPS growth and attractive skew. We expect EPS growth in the mid-teens over the next several years.”
