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White Falcon Capital Management, an investment fund manager, released its first-quarter 2025 investor letter. In the tough and volatile first quarter, White Falcon delivered a net return of -6.1%, vs. the S&P 500 TR’s (CAD) -3.1%, MSCI AC TR’s (CAD) -0.6%, and the S&P TSX TR’s 4.0% returns. A copy of the letter is available to download here. In the quarter, the software and services sector faces a downturn due to AI-related risks, but the firm emphasizes long-term performance over short-term results. The White Falcon portfolio aims for positive risk-adjusted returns, diverging from market indexes. The software sector presents a long-term opportunity, leading to increased allocation to essential software companies with competitive advantages. Another significant event this quarter was the conflict in Iran. White Falcon’s investment approach during any conflict is to maintain its portfolio exposure without making drastic changes. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, White Falcon Capital Management highlighted stocks like Oracle Corporation (NYSE:ORCL). Oracle Corporation (NYSE:ORCL) is a leading global provider of products and services that enable enterprise information technology environments across multiple industries. On May 6, 2026, Oracle Corporation (NYSE:ORCL) closed at $194.03 per share. One-month return of Oracle Corporation (NYSE:ORCL) was 40.74%, and its shares gained 29.10% over the past 52 weeks. Oracle Corporation (NYSE:ORCL) has a market capitalization of $558.04 billion.
White Falcon Capital Management stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q1 2026 investor letter:
"Oracle Corporation (NYSE:ORCL) is reinventing itself from a traditional software company into a vertically integrated enterprise cloud provider, controlling the entire stack from infrastructure to database to enterprise applications. At its core, with its database and applications, Oracle is the ‘system of record’ which executives rely on as the ‘single source of truth’ within an enterprise. Much of the world’s government, financial, healthcare, and retail data runs on Oracle databases, making the platform deeply mission critical and exceptionally sticky. Even in a world where agents autonomously execute business processes, enterprises will always need a ‘single source of truth’ to reconcile transactions, diagnose failures, and audit agent driven decisions.
Today, Oracle is leveraging this foundation to transform into a specialized cloud and AI business. Their strategy is to use their ‘data moat’ to pull AI workloads onto their infrastructure business (OCI). Because so much of the world’s mission critical information already lives in Oracle databases, the company is using that position to attract AI training and inference workloads onto OCI. It is now the fourth largest hyperscaler but rather than compete head on with AWS, Azure, or Google, Oracle is partnering with them and giving enterprises multicloud flexibility. Interestingly, Oracle’s late arrival to the cloud has actually worked in its favor as it could incorporate the industry’s best architectural practices for its specific workloads…” (Click here to read the full text)
Oracle Corporation (NYSE:ORCL) ranks 40 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 111 hedge fund portfolios held Oracle Corporation (NYSE:ORCL) at the end of the fourth quarter, compared to 122 in the previous quarter. While we acknowledge the potential of Oracle Corporation (NYSE:ORCL) 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.
In another article, we covered Oracle Corporation (NYSE:ORCL) and shared Ariel Investments' insights in the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.