October 15, 2026. Reaves W H & Co Inc released its third-quarter 2026 investor letter for 'Reaves Long-Term Value Strategy'. The letter can be downloaded here. The Reaves Long-Term Value Wrap Composite saw an 11.83% decline before fees in Q3, underperforming the MSCI USA Infrastructure Index's -5.73%, though it gained 7.88% in the first nine months of 2026, outperforming the index. The weighted average cash distributions from portfolio companies rose by 6.5% compared to Q3 2025. The challenging macroeconomic landscape, characterized by rising Treasury yields and tight monetary policy, impacted performance, especially for interest-sensitive holdings. However, the overall growth outlook improved, with several companies raising guidance despite stagnant share prices. Investment in AI infrastructure expanded, enhancing opportunities across sectors, while increased electricity demand supports growth in infrastructure investments. The focus remains on long-term earnings potential, aiming to identify undervalued companies amidst these durable growth opportunities. Also, check the strategy's top five holdings to see its best picks in 2026.
In its Q3 2026 investor letter, Reaves Long-Term Value Strategy highlighted Johnson Controls International plc (NYSE: JCI) as a leading contributor. Johnson Controls International plc (NYSE:JCI) engages in engineering, manufacturing, commissioning, and retrofitting building products and systems. On October 14, 2026, Johnson Controls International plc (NYSE:JCI) closed at $152.44, with a $92.34 billion market capitalization. Johnson Controls International plc (NYSE:JCI) is up 27.30% YTD, trading within a 52-week range of $107.77 to $160.41.
Reaves Long-Term Value Strategy stated the following regarding Johnson Controls International plc (NYSE:JCI) in its Q3 2026 investor letter: 'Johnson Controls International plc (NYSE:JCI): Johnson Controls is benefiting from U.S. reindustrialization and growing data center construction, which are supporting demand for its building systems and services. Under new management, the company is also implementing initiatives to improve competitiveness, capital efficiency, and margins. We expect continued backlog growth and operational improvements to support earnings growth over the next 12 months.'
Johnson Controls International plc (NYSE:JCI) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Johnson Controls International plc (NYSE:JCI) at the end of the second quarter, which was 82 in the previous quarter. While we acknowledge the potential of Johnson Controls International plc (NYSE:JCI) 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 discussed Johnson Controls International plc (NYSE:JCI) and shared a list of best HVAC stocks to buy for AI server heat mitigation. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
Author: Soumya Eswaran
Source: https://finance.yahoo.com/markets/stocks/articles/johnson-controls-jci-capitalizes-u-123135687.html
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