Albertsons Companies (ACI) Slid Amid Multiple Headwinds

Soumya Eswaran Mon, July 13, 2026 at 10:38 AM EDT 3 min read **

• ACI

Longleaf Partners, managed by Southeastern Asset Management**, released its second-quarter 2026 investor letter for its "Partners Fund". A copy of the letter can be downloaded here. The letter states that the portfolio holdings are attractive now based on both P/V and P/FCF metrics. However, the Fund returned 3.87% in the quarter, significantly lagging the S&P 500's 15.20% return and the Russell 1000 Value Index's 13.87% gain. An underweight in Information Technology (IT) primarily contributed to the underperformance. The market's preference for overvalued stocks in Industrials and other sectors led to inflated multiples, overshadowing real earnings power. The Firm's investment approach focuses on median, unweighted multiples, prioritizing growth in free cash flow per share, the potential for multiple expansion, and strategic initiatives. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Longleaf Partners Fund highlighted Albertsons Companies, Inc. (NYSE:ACI). Albertsons Companies, Inc. (NYSE:ACI) is a leading US based food and drug retail operator that offers grocery products, general merchandise, health and beauty care products, pharmacy, vaccines, fuel, and other items and services. On July 10, 2026, Albertsons Companies, Inc. (NYSE:ACI) closed at $14.76 per share, reflecting a market capitalization of $7.23 billion. Albertsons Companies, Inc. (NYSE:ACI) posted a one-month return of -0.67%, while its shares lost 33.30% over the past 52 weeks.

Longleaf Partners Fund stated the following regarding Albertsons Companies, Inc. (NYSE:ACI) in its Q2 2026 investor update:

** "Albertsons Companies, Inc.** (NYSE:ACI) – Supermarket operator Albertsons was a detractor in the quarter. While current comparable store sales are a percentage point or so below where they should and could be, the company still has more levers to pull to improve FCF per share at this very defensive business. The market focused more on how close peer Kroger reported mildly disappointing results, and the competitive environment remains intense with Walmart executing well and Aldi committing to more growth. We also recognize that a boring company like Albertsons is the opposite of what the stock market wants at a time like this. After quarter-end, Kroger bought inferior peer Giant Eagle in a transaction that more than affirmed our Albertsons appraisal."

Evercore ISI Sees Limited Upside in Albertsons (ACI) despite Target Increase Albertsons Companies, Inc. (NYSE:ACI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 38 hedge fund portfolios held Albertsons Companies, Inc. (NYSE:ACI) at the end of the first quarter, compared to 41 in the previous quarter. While we acknowledge the potential of Albertsons Companies, Inc. (NYSE:ACI) 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 thebest short-term AI stock.

Story Continues In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.