Egerton Capital's Trades and Holdings in Q1 2026

Breaking down the stocks Egerton Capital bought, sold, and held in Q1 2026, including their holdings at the end of the quarter. All data sourced from Egerton Capital's 13F filed on May 13, 2026.

Who are John Armitage and Egerton Capital?

Egerton Capital is a London-based investment firm founded in 1994 by John Armitage. The fund employs a fundamental, research-driven approach to long/short equity investing primarily in European and North American markets. Under Armitage's leadership, Egerton has built a strong reputation for disciplined risk management and consistent performance across market cycles, focusing on high-quality companies with strong management teams and sustainable competitive advantages.

Egertoncapital.com
Wikipedia on Egerton Capital
Wikipedia on Jon Armitage
Q1 '26 13F filed with SEC

Holdings in Q1 2026

Current Investment Strategy

Egerton Capital's John Armitage stuck to his concentrated, research-intensive long/short playbook in the first quarter of 2026, with the top ten positions—led by Visa, Alphabet and Moody's—accounting for the bulk of the roughly $10 billion 13F portfolio as the fund added aggressively to existing winners rather than chasing breadth. In the recent quarter John Armitage has bought 16 securities out of which top 5 purchases (by % change to portfolio) are (GOOG) ALPHABET INC-CL C (added shares +220.7%), (LIN) LINDE PLC (new buy), (NVDA) NVIDIA CORP (new buy), (MCO) MOODY'S CORP (added shares +99.85%) and (DVN) DEVON ENERGY CORP (new buy). The manager rotated further into industrial gases, energy and AI-infrastructure exposure via new stakes in Linde, NVIDIA, Devon Energy, Canadian Natural Resources and Medline, while exiting Microsoft, Boston Scientific, Capital One, Wynn Resorts and Seagate—a shift that underscores Egerton's continued preference for high-quality, durable-moat businesses over cyclical or lower-conviction names.

New Investments

Linde

Egerton Capital bought $529.66M of Linde in Q1 2026. The purchase adds exposure to a name in an earnings uptrend: in Q2 2026 the company delivered record revenue of $9.3 billion (up roughly 9–10% year over year) and net income of about $1.9 billion, driving GAAP EPS of $4.15 and adjusted EPS of $4.50, with the adjusted figure above consensus and higher than the prior quarter. Operationally, Q2 marked a continuation of the last two quarters’ trend of modest volume growth and positive price/mix, but also highlighted margin headwinds—particularly in the U.S. home care business—which have weighed on the shares even as the project backlog reached a record $8.1 billion on the back of strong electronics demand. Over the last 12 months, the stock has appreciated roughly 9–10% with year‑to‑date gains of about 12%, supported by consistent ~2.7% average quarterly revenue growth, rising profits, and a growing dividend (current quarterly payout $1.60 per share), but price action has flattened over the past quarter and dropped mid‑single‑digits post‑earnings, leaving upside leverage to any evidence of second‑half margin recovery and continued backlog conversion.

• Q2 2026 revenue $9.3 billion (+~9–10% YoY) and adjusted EPS $4.50, both modestly above consensus estimates..
• Project backlog at quarter‑end was a record $8.1 billion, while sequential adjusted EPS grew from about $3.91 to $4.50 despite slight operating margin compression..
• Share price up roughly 9–12% over the last 12 months/YTD, with a current quarterly dividend of $1.60 per share and EPS TTM of about $15.16..

NVIDIA

Egerton Capital bought $466.52M of NVIDIA in Q1 2026. Over the last two quarters, NVIDIA has delivered explosive fundamental growth, with Q4 FY2026 revenue rising to $68.1B (up 20% Q/Q and 73% Y/Y) and Q1 FY2027 revenue accelerating further to about $81.6–82.0B (up ~85% Y/Y), driven overwhelmingly by data center AI demand. In the current quarter (Q1 FY2027), EPS of $1.87 beat consensus, data center revenue surged to $75.2B (up 92% Y/Y), and non-GAAP gross margin expanded to around 75%, indicating strengthening profitability and scale relative to most large-cap semiconductor peers (this peer outperformance is an inference based on these unusually high growth and margin levels). Looking ahead, management has guided Q2 FY2027 revenue to $89.1–$92.8B, raised the quarterly dividend to $0.25 per share, and continues to emphasize secular AI and accelerated-computing demand as key drivers, all of which are supportive of further value creation despite recent post-earnings share price volatility.

• Q1 FY2027 revenue of $81.6B, up about 85% year-over-year and roughly 20% sequentially, with data center revenue at $75.2B (up 92% Y/Y)..
• Q4 FY2026 revenue of $68.1B, up 20% Q/Q and 73% Y/Y, including data center revenue of $62.3B (up 22% Q/Q and 75% Y/Y)..
• Q2 FY2027 guidance calls for revenue between $89.1B and $92.8B, implying roughly 11–14% sequential growth from Q1 FY2027 and continued AI-driven acceleration (growth implication is an inference from guidance vs. reported Q1 revenue)..

Devon Energy

Egerton Capital bought $328.35M of Devon Energy in Q1 2026. The purchase comes as Devon has pivoted from a softer start to the year into a very strong current quarter: Q2 2026 revenue rose to $7.42B, up 73.1% year over year and about 94.8% sequentially, while adjusted EPS of $1.57 beat the Zacks consensus estimate of $1.30 by 20.8% and total production reached 1.36 MMboe/d with oil at 503 kbbl/d. This performance represents a clear acceleration versus Q1 2026, when EPS of $1.04 and revenue of $3.81B came in below Street expectations, and over the last 12 months Devon has expanded revenue by 73.1% with gross margin near 55.95%, generating roughly $1.7B of adjusted free cash flow in Q2, lowering its reinvestment rate to 43% of cash flow and returning more than $1B to shareholders via dividends, buybacks and debt reduction in the quarter. Alongside these fundamentals, the May 2026 merger with Coterra is already contributing to higher scale and technology-driven cost efficiencies, with Devon beating guidance on every major operating metric in Q2; although the stock slipped about 2.8% post-earnings amid investor focus on portfolio review, integration and potential asset sales, the combination of outsized growth, solid margins and merger synergies positions the company as an above-average performer versus U.S. E&P peers over the past year (based on broader industry data beyond the provided sources).

• Q2 2026 revenue of $7.42B, up 73.1% year over year and about 94.8% quarter over quarter.
• Adjusted EPS of $1.57 in Q2 2026 beat the Zacks consensus estimate of $1.30 by 20.8%.
• Q2 2026 production averaged 1.36 MMboe/d with oil at 503 kbbl/d, generating roughly $1.7B of adjusted free cash flow and reducing the reinvestment rate to 43% of cash flow.

Canadian Nat Res Ltd Med Ter

Egerton Capital bought $277.06M of Canadian Nat Res Ltd Med Ter in Q1 2026. Over the last 12 months the issuer’s equity has generated strong returns, with the stock up roughly 49.95%–61.12% and a year‑to‑date gain of about 34.27%, pointing to robust investor confidence in Canadian Natural Resources’ cash‑flow profile. Performance over the last two quarters has been more mixed: shares pushed toward their 52‑week highs in late Q1 2026, closing at 69.46 CAD on March 27, then corrected by roughly 19% over the subsequent three months, and in the current quarter are stabilizing in the mid‑60s CAD range. Fundamental support remains solid, with a recent better‑than‑expected quarterly profit underscoring the resilience of the company’s low‑cost, diversified asset base and equity trading at about 11.68x P/E with a 3.69% dividend yield and an average 12‑month price target of 71.10 CAD, all of which are positive factors for the value of the medium‑term note.

• Shares are up approximately 49.95% over the last 12 months and 34.27% year‑to‑date based on Barron's data..
• Current price around 66.35 CAD is about 6.7% below the average 12‑month analyst target of 71.10 CAD (range 62–90 CAD), implying further upside potential..
• The stock has declined roughly 19.14% over the last 3 months after reaching a 52‑week high near 51.34 USD on the U.S. listing, indicating a recent consolidation phase..

Medline Inc

Egerton Capital bought $194.28M of Medline Inc in Q1 2026. Over the last 12 months, Medline has delivered consistent high-single to low-double-digit top-line growth, with first-half 2026 net sales up 11.1% year over year to $15.0B and first-half 2025 sales up 9.7%, while organic sales growth guidance has been raised to 9%–10% on the back of more than $650M in new customer signings (about 65% of its $1B annual target) and a 16% increase in its Supply Chain Solutions segment. In the most recent quarter, net sales grew 11.6% to $7.7B and adjusted EBITDA rose 13.4% to $1.06B (underlying EBITDA roughly $817M excluding a $243M tariff refund benefit), showing improving operational scale but also margin pressure, as GAAP net income fell 58.3% to $139M (GAAP EPS $0.07, adjusted EPS $0.50) driven by a $336M loss from the Tracy, California distribution-center fire, higher tariffs and elevated costs to support growth. While large healthcare distributors typically grow revenue at mid-single-digit rates, Medline’s recent high-single to low-double-digit growth and rising organic sales guidance point to relative outperformance versus peers (this comparison is an inference based on general industry patterns rather than the cited figures), and despite a 14.8% share-price drop on the Q2 print the stock is still up about 15% year to date, supported by strong first-half free cash flow of around $920M, leverage reduced to roughly 2.9x and a still sizable full-year adjusted EBITDA outlook of $3.3B–$3.4B.

• Q2 2026 net sales increased 11.6% year over year to $7.7B, following Q1 2026 net sales growth of 10.7% to $7.4B..
• First-half 2026 free cash flow was approximately $920M, with net leverage reduced to about 2.9x, below the long-term target of 3.0x..
• Full-year 2026 adjusted EBITDA guidance was cut from $3.5B–$3.6B to $3.3B–$3.4B (about 5%–6% lower), even as organic sales growth guidance was raised to 9%–10%..

Arch Capital

Egerton Capital bought $107.21M of Arch Capital in Q1 2026. Over the last two quarters, the company has delivered consistently above-consensus results, with Q1 2026 EPS of $2.50 beating estimates by 1.63% and Q2 2026 operating EPS of $2.56 beating by 5.35%, while Q2 diluted net income EPS reached $3.00 and annualized net income ROE remained a robust 18.0%. In the current quarter, profitability is slightly below the exceptionally strong prior-year Q2 on ROE but still reflects strong underwriting and investment returns, with operating ROE of 15.3%, book value per share up 2.8% in the quarter and first-half net income ROE of 17.9% versus 17.0% a year ago, supported by disciplined execution across insurance, reinsurance and mortgage segments despite catastrophe losses tied to the Iran conflict. Share performance has been strong, with the stock up 13.50% over the last three months and 23.36% over the last 12 months and still trading near its 52-week high, while the acceleration in buybacks—$1.2 billion in Q2 and $1.95 billion in the first half, or roughly 94% of net income—plus continued earnings beats and book value growth are key recent drivers that should support further value creation even as investors weigh a softer property reinsurance pricing environment and rising competition in parts of the market.

• Q2 2026 operating EPS $2.56 vs consensus $2.43, a 5.35% beat; Q1 2026 EPS $2.50 vs $2.46, a 1.63% beat..
• Q2 2026 net income to common shareholders $1.047 billion (diluted EPS $3.00) with annualized net income ROE of 18.0% and operating ROE of 15.3%..
• Book value per share increased 2.8% in Q2 2026 and 4.5% over the first half of 2026, while the company repurchased $1.2 billion of stock in Q2 and $1.95 billion in 1H 2026 (~94% of net income)..

Armstrong World Industries

Egerton Capital bought $73.84M of Armstrong World Industries in Q1 2026. This purchase comes as Armstrong World Industries has delivered record Q2 2026 net sales of $472.0 million, up 11.2% year over year, with operating income up 8.6%, net earnings up 10.1%, and diluted EPS up 12.4%, indicating the business is still gaining momentum through a mix of volume growth and favorable pricing in both Mineral Fiber and Architectural Specialties despite generally flattish end markets. Over the last year the company has posted back‑to‑back double‑digit second‑quarter revenue and earnings increases—net sales up 16% and adjusted EPS up 29% in Q2 2025, followed by net sales up 11% and adjusted diluted EPS up 13% in Q2 2026—while its recent earnings beat, higher full‑year outlook, and strong profitability metrics such as a 18.59% net margin and 36.71% ROE have driven a roughly 10.6% post‑earnings share price jump and support the thesis that the company’s value is increasing.

• Q2 2026 net sales rose 11.2% year over year to $472.0 million, driving 8.6% growth in operating income and 10.1% growth in net earnings..
• Q2 2026 diluted EPS increased 12.4% to $2.26, with adjusted diluted EPS up 12.9% to $2.36, both modestly above consensus estimates..
• For the first six months of 2026, net sales grew about 9.3% to $881.9 million and net earnings increased around 4.2% to $163.5 million versus the prior year..

Added, Trimmed, and Exited

Added

Egerton Capital substantially increased several existing positions, led by a major addition to Alphabet (shares up from 1,078,768 to 3,459,649, a value increase from $338.5M to $992.4M, or roughly +193%), alongside sizable adds to Vulcan Materials (+75.9% in value), Moodys (+70.7%), Uber (+52.8%), and Lamar Advertising Co (+50.9%). Smaller increases were made to Visa, CME, CRH, and Mastercard.
What it means: The scale of the Alphabet add-on—nearly tripling the position—stands out as a high-conviction bet, suggesting the firm sees continued upside in the name despite (or because of) recent market moves. The broader pattern of adding to a mix of tech (Alphabet, Uber), payments (Visa, Mastercard, CME), and industrials/services (Vulcan Materials, Moodys, CRH, Lamar Advertising Co) indicates Egerton Capital is diversifying conviction across sectors rather than concentrating purely in mega-cap tech, potentially reflecting a view that quality compounders across industries offer attractive risk/reward as the market cycle evolves.

Trimmed

Egerton Capital made significant reductions to several holdings, most notably cutting Amazon by nearly 3.53 million shares—a 63.8% reduction in value from $1.36B to $492.2M. Other notable trims included Ferguson (-34.1%), Amphenol Corp (-27.6%), RenaissanceRe (-31.6%), Embraer S.A. (-16.3%), New York Times Co Mtn Be (-16.9%), Interactive Brokers (-5.7%), and a modest share reduction in Carpenter Technology.
What it means: The dramatic reduction in Amazon—by far the largest trim in both absolute and percentage terms—suggests the firm may be taking profits after a period of strength or reallocating capital toward higher-conviction ideas like Alphabet, effectively rotating within mega-cap tech rather than reducing overall tech exposure. The broader trimming across industrials (Ferguson, Amphenol Corp), insurance (RenaissanceRe), and other cyclical names points to a portfolio rebalancing exercise, funding the larger adds noted above while managing position sizing and risk concentration.

Exited

Egerton Capital fully exited six positions during the quarter: Microsoft ($845.7M), Boston Scientific ($513.5M), Capital One ($501.5M), Wynn Resorts ($249.1M), Seagate ($200.8M), and LPL Financial ($91.0M).
What it means: The complete liquidation of Microsoft, previously one of the larger holdings, alongside significant financial (Capital One, LPL Financial) and healthcare (Boston Scientific) exits, signals a meaningful shift away from these sectors and specific mega-cap tech exposure. This wave of exits—totaling over $2.4B in prior value—appears to have helped fund both the new positions in Linde, NVIDIA, and Devon Energy, as well as the substantial add-on to Alphabet, suggesting a deliberate reallocation of capital toward AI/data-center themes (NVIDIA), industrial gases (Linde), and energy (Devon Energy) at the expense of financials, healthcare devices, and legacy tech holdings.

Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.