QXO (QXO) Struggled in the Softer Market

Soumya Eswaran Thu, July 16, 2026 at 11:11 AM EDT 3 min read **

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Fred Alger Management**, an investment management company, released its "Alger Capital Appreciation Fund" second-quarter 2026 investor letter. A copy of the letter can be downloaded here. US equities strongly rebounded in the second quarter, with the S&P 500 Index rising 15.2%. Easing geopolitical tensions and technological advancements fueled market optimism, propelling the Information Technology and Industrials sectors forward, while Energy and Utilities lagged due to falling oil and gas prices. Despite discussions on AI disruption, opportunities are identified within sectors adopting the technology as it enters its agentic phase. The Alger Capital Appreciation Fund's Class A shares outperformed the Russell 1000 Growth Index in the quarter, driven by strong performances in Information Technology and Communication Services, while Industrials and Financials detracted from overall performance. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Alger Capital Appreciation Fund highlighted QXO, Inc. (NYSE:QXO). QXO, Inc. (NYSE:QXO), a leading US based roofing, waterproofing and complementary building products distributor, detracted from the performance in the quarter. On July 15, 2026, QXO, Inc. (NYSE:QXO) closed at $15.32 per share, reflecting a market capitalization of $15.9 billion. QXO, Inc. (NYSE:QXO) posted a one-month return of -12.78%, while its shares lost 28.91% over the past 52 weeks.

Alger Capital Appreciation Fund stated the following regarding QXO, Inc. (NYSE:QXO) in its Q2 2026 investor update:

** "QXO, Inc.** (NYSE:QXO) is a building products distribution company led by Brad Jacobs, an entrepreneur with a long track record of building large, successful companies through disciplined acquisitions and operational improvement. The company is pursuing a strategy of acquiring and integrating distributors of roofing, waterproofing, and related construction materials to build a national-scale platform. We view QXO as an attractive way to participate in the consolidation of a large and fragmented distribution industry. Shares detracted from performance during the quarter as softer conditions in the building products market weighed on near-term results. Sentiment was also pressured by the financing and regulatory considerations tied to a large pending acquisition announced during the period."

QXO, Inc. (NYSE:QXO) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 65 hedge fund portfolios held QXO, Inc. (NYSE:QXO) at the end of the first quarter, up from 63 in the previous quarter. While we acknowledge the potential of QXO, Inc. (NYSE:QXO) 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 another article, we covered QXO, Inc. (NYSE:QXO) and shared the list of Mar Vista Investment Partners' views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.