Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSoumya EswaranTue, June 30, 2026 at 2:38 PM GMT+2 3 min readLongleaf Partners, managed by Southeastern Asset Management, released its first-quarter 2026 investor letter for its "Small-Cap Fund". A copy of the letter can be downloaded here. The Fund returned -2.72% in the quarter, outperforming the Russell 3000's -3.96% return and lagging the Russell 2000 Index's 0.89% and the Russell 2000 Value Index's 4.96% gains. The market experienced significant sector-wide movements in the quarter driven by perceptions surrounding AI outcomes, alongside complications from the conflict in Iran and escalating private credit risks. In addition, please check the Fund's top five holdings to know its best picks in 2026.In its first-quarter 2026 investor letter, Longleaf Partners Small-Cap Fund highlighted Shenandoah Telecommunications Company (NASDAQ:SHEN). Shenandoah Telecommunications Company (NASDAQ:SHEN) is a US-based telecommunications company that provides broadband services and video and voice services. On June 29, 2026, Shenandoah Telecommunications Company (NASDAQ:SHEN) closed at $15.62 per share, reflecting a market capitalization of $864.13 million. Shenandoah Telecommunications Company (NASDAQ:SHEN) posted a one-month return of -3.82%, while its shares gained 11.49% over the past 52 weeks.Longleaf Partners Small-Cap Fund stated the following regarding Shenandoah Telecommunications Company (NASDAQ:SHEN) in its Q1 2026 investor letter:"Shenandoah Telecommunications Company (NASDAQ:SHEN) – Telecom company Shenandoah was a contributor for the quarter. The company reported a solid set of results that helped the market wake up to these off-the-radar assets that we started buying last year. While parts of this unique company are technically "legacy" telecom, Shenandoah made the wise call to focus on building out its fiber business years ago. This led to decreased short-term earnings power and a higher leverage ratio on reported EBITDA, but the company built a substantial amount of value with this capital allocation decision. Now a strong majority of its value comes from this great, growing business. Shenandoah also wisely securitized most of its fiber assets in the 4th quarter to improve the balance sheet. The company is now getting closer to FCF positive in 2027, and earnings growth should continue to be strong thereafter."Shenandoah Telecommunications Company (NASDAQ:SHEN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 13 hedge fund portfolios held Shenandoah Telecommunications Company (NASDAQ:SHEN) at the end of the first quarter, up from 14 in the previous quarter. While we acknowledge the potential of Shenandoah Telecommunications Company (NASDAQ:SHEN) 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.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info