Greenlight Capital is an investment management firm specializing in value-oriented strategies. The letter can be downloaded here. Greenlight Capital released its second-quarter 2026 investor letter, reporting a 4.3% decline for the Partnerships and a 1.9% year-to-date gain, net of fees and expenses, compared with gains of 15.2% and 10.2% for the S&P 500 Index. The funds entered the quarter conservatively, but costly trading decisions and macro positions, particularly in gold and U.S. interest rates, weighed on results. Long positions contributed roughly 9%, offset by similar losses from shorts. The letter also highlighted concerns over speculative market conditions, using SpaceX’s $1.75 trillion IPO valuation and investment-grade rating as examples of excess. Looking ahead, Greenlight is more constructive on Fed Chairman Kevin Warsh’s inflation stance and expects positions to recover if inflation moderates and rates remain unchanged. Additionally, reviewing the Strategy’s top holdings could help identify its best ideas for 2026.
In its second-quarter 2026 investor letter, Greenlight Capital highlighted Victorias Secret & Co. (NYSE:VSXY). Victorias Secret & Co. (NYSE:VSXY) operates as a specialty retailer of women’s intimate apparel and other apparel and beauty products worldwide. On August 26, 2026, Victorias Secret & Co. (NYSE:VSXY) closed at $90.97 per share. The one-month return of Victorias Secret & Co. (NYSE:VSXY) was 1.58%, and its shares gained 295.37% over the past 52 weeks. Victorias Secret & Co. (NYSE:VSXY) has a market capitalization of $7.22 billion, and its stock has traded within a 52-week range of $ 21.39 to $102.46.
Greenlight Capital stated the following regarding Victorias Secret & Co. (NYSE:VSXY) in its Q2 2026 investor letter:
“During the quarter, we also exited a few positions: Victorias Secret & Co. (NYSE:VSXY) with a 157% IRR over a 1-year holding period. Under new management, the company refreshed the brand, returned the company to “sexy” (in its marketing and in its new ticker), generated renewed customer interest and improved financial performance.”
Victorias Secret & Co. (NYSE:VSXY) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held Victorias Secret & Co. (NYSE:VSXY) at the end of the second quarter which was 44 in the previous quarter. While we acknowledge the potential of Victorias Secret & Co. (NYSE:VSXY) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. 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.
