It’s hard to write a letter these days. Any attempt to prepare thoughts in advance risks quickly being obsolesced (we hope this letter is still relevant when you read it!). Topsy-turvy is the best way to describe the first quarter of 2026. The year started on a decent note with gains in January. However, renewed tariff concerns, waning enthusiasm for AI-related stocks and war in Iran ultimately became headwinds. The S&P 500® Index finished the quarter down 4.3% while the Russell 2000® Index finished up 0.9% (having been up 9.6% at one point).