Giverny Capital Asset Management Sold Ametek (AME) Due to Valuation Gap

Soumya Eswaran Thu, June 18, 2026 at 8:15 AM EDT 2 min read **

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Giverny Capital Asset Management, LLC, an investment management company, recently published its first-quarter 2026 investor letter. A copy can be downloaded here. The model portfolio fell 6.88% this quarter, compared to the S&P 500’s 4.33% decline. Over the past year, the portfolio gained 8.52%, while the index increased by 17.80%. Geopolitical conflicts and inflation concerns drove quarterly volatility. Despite ongoing uncertainties, the firm remains confident that its portfolio companies will sustain strong earnings and maintain healthy balance sheets, focusing on company-specific news rather than short-term fluctuations. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2026.

In its first-quarter 2026 investor letter, Giverny Capital Asset Management highlighted AMETEK, Inc. (NYSE:AME). AMETEK, Inc. (NYSE:AME) is a leading manufacturer of electronic instruments and electromechanical devices. On June 17, 2026, AMETEK, Inc. (NYSE:AME) stock closed at $231.27 per share. One-month return of AMETEK, Inc. (NYSE:AME) was 3.63%, and its shares gained 30.10% over the past 52 weeks. AMETEK, Inc. (NYSE:AME) has a market capitalization of $53.00 billion.

Giverny Capital Asset Management stated the following regarding AMETEK, Inc. (NYSE:AME) in its Q1 2026 investor letter:

We exited Ametek in February at $232, after trimming the position in the fourth quarter. I am an admirer of Ametek and am appreciative of the fine return we earned as shareholders over our six years of ownership. However, Ametek’s rising PE multiple of ~27x felt too high relative to its long-term earnings growth rate of about 10% and its return on equity of 15%. The growth and return on equity figures are solid, but do not justify a growth stock multiple.

BMO Capital Sees AMETEK (AME) Rebounding After Lagging 2025 Performance AMETEK, Inc. (NYSE:AME) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 70 hedge fund portfolios held AMETEK, Inc. (NYSE:AME) at the end of the first quarter, up from 64 in the previous quarter. While we acknowledge the potential of AMETEK, Inc. (NYSE:AME) 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 AMETEK, Inc. (NYSE:AME) and shared TCW Relative Value Large Cap Fund's views on 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.