Attiya Zainib
3 min read
Greenlight Capital, an investment management firm, recently released its Q3 2026 investor letter. A copy of the letter can be downloaded here. The funds returned -3.3% in the third quarter of 2026, compared with a 2.3% gain for the S&P 500, bringing their year-to-date return to -1.5% against the index’s 12.7% advance. The disappointing performance reflected weakness across the fund’s long portfolio, which declined 8.5%, while its short portfolio gained 7.1%. Several holdings fell between 10% and 25% without identifiable company-specific catalysts. A significant portion of the letter focused on the economics of artificial intelligence. The firm estimated that current worldwide end-user AI revenue is probably below $100 billion, compared with the approximately $30 trillion total addressable market claimed by some industry participants. It also highlighted the intense competition among AI providers, the availability of open-source models, and the possibility that substantial capital could be destroyed during the infrastructure buildout. The macro portfolio lost 2.0% during the quarter, bringing its year-to-date decline to 6.0%, largely because the fund’s position anticipating Federal Reserve rate cuts moved against it. Greenlight reduced that position by one-third for risk-management purposes. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Greenlight Capital highlighted stocks like Brighthouse Financial, Inc. (NASDAQ:BHF). Brighthouse Financial, Inc. (NASDAQ:BHF) is a financial services company that provides annuity and life insurance products to individuals and institutional customers in the United States. The one-month return of Brighthouse Financial, Inc. (NASDAQ:BHF) is -14.28% and its 52-week trading range is between $41.98 and $66.80. On November 2nd, 2026, Brighthouse Financial, Inc. (NASDAQ:BHF) stock closed at $43.55 per share. Its market capitalization was approximately $2.51 billion.
Greenlight Capital stated the following regarding Brighthouse Financial, Inc. (NASDAQ:BHF) in its Q3 2026 investor letter:
“Brighthouse Financial, Inc. (NASDAQ:BHF), which declined 21%, as concerns grew that its pending sale to Aquarian Capital would be blocked by regulators;”
Brighthouse Financial, Inc. (NASDAQ:BHF) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 49 hedge fund portfolios held Brighthouse Financial, Inc. (NASDAQ:BHF) at the end of the second quarter, which was 47 in the previous quarter. While we acknowledge the risk and potential of Brighthouse Financial, Inc. (NASDAQ:BHF) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.
