RELX (RELX) Exit: Generative AI Headwinds Prompt Portfolio Sale
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Hennessy Fund released its Q3 2026 investor letter for the “Hennessy Focus Fund”. During the third quarter, U.S. equity markets were characterized by a concentration in mega-cap technology stocks, overshadowing broader market performance. The letter can be downloaded here. Rising long-term interest rates from a “higher for longer” Federal Reserve policy, coupled with increasing crude oil prices due to geopolitical tensions, contributed to investor uncertainty and compressed valuations across most sectors. The fund’s strategy involved refining a barbelled portfolio, capturing the growth from AI infrastructure while holding businesses insulated from this trend. The portfolio managers maintained a focus on high-quality businesses with significant growth potential, excellent management, and low tail risks, and anticipate continued profitability driving equity performance moving into 2027, despite macroeconomic fluctuations. Also, check the Fund’s top five holdings to see its best picks for 2026.
In its Q3 2026 investor letter, Hennessy Focus Fund disclosed that it fully exited its position in RELX PLC (NYSE:RELX), a British-based information analytics and decision solutions provider for professional and business customers. On November 03, 2026, RELX PLC (NYSE:RELX) closed at $39.40 per share with a market capitalization of $68.72 billion. RELX PLC (NYSE:RELX) was up 19.70% over the past month, but declined 7.31% over the trailing 52 weeks
Hennessy Focus Fund stated the following regarding RELX PLC (NYSE:RELX) in its Q3 2026 investor letter:
“We also exited RELX PLC (NYSE:RELX), which was just a 0.4% position. We have concerns about several of its’ core businesses facing potential erosion from the emergence of AI based capabilities and tools. It was always a lower conviction starter position, and never exceeded 1% of assets.”
RELX PLC (NYSE:RELX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held RELX PLC (NYSE:RELX) at the end of the second quarter, which was 22 in the previous quarter. While we acknowledge the potential of RELX PLC (NYSE:RELX) 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.
In another article, we discussed RELX PLC (NYSE:RELX) and shared Aoris Investment Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
This article is originally published at Insider Monkey.
