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Greenlight Capital is an investment management firm specializing in value-oriented strategies. The letter can be downloaded here. Greenlight Capital released its second-quarter 2026 investor letter, reporting a 4.3% decline for the Partnerships and a 1.9% year-to-date gain, net of fees and expenses, compared with gains of 15.2% and 10.2% for the S&P 500 Index. The funds entered the quarter conservatively, but costly trading decisions and macro positions, particularly in gold and U.S. interest rates, weighed on results. Long positions contributed roughly 9%, offset by similar losses from shorts. The letter also highlighted concerns over speculative market conditions, using SpaceX's $1.75 trillion IPO valuation and investment-grade rating as examples of excess. Looking ahead, Greenlight is more constructive on Fed Chairman Kevin Warsh's inflation stance and expects positions to recover if inflation moderates and rates remain unchanged. Additionally, reviewing the Strategy's top holdings could help identify its best ideas for 2026.

In its second-quarter 2026 investor letter, Greenlight Capital highlighted Primo Brands Corporation (NYSE:PRMB). Primo Brands Corporation (NYSE:PRMB) operates as a branded beverage company in North America. On August 26, 2026, Primo Brands Corporation (NYSE:PRMB) closed at $22.98 per share. Over the past month, Primo Brands Corporation (NYSE:PRMB) returned 0.35%, while its shares have declined 8.67% in the last 52 weeks. Primo Brands Corporation (NYSE:PRMB) has a market capitalization of $8.32 billion, and its stock has traded within a 52-week range of $14.36 to $26.21.

Greenlight Capital stated the following regarding Primo Brands Corporation (NYSE:PRMB) in its Q2 2026 investor letter:

"Primo Brands Corporation (NYSE:PRMB) provides bottled water through the retail channel as well as water delivery to homes and businesses. Its brands include Poland Spring, Pure Life, Mountain Valley and Saratoga. Following its merger with competitor BlueTriton Brands, integration challenges weighed on results and contributed to a material decline in the stock price. We believe these issues are temporary and that the merger will create synergies over time. We acquired our shares at an average price of $20.20, implying a 12% free cash flow yield on our expectation for 2027 results, which compares to peer free cash flow yields of 3-5%. PRMB ended the quarter at $24.44."

Primo Brands Corporation (NYSE:PRMB) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Primo Brands Corporation (NYSE:PRMB) at the end of the second quarter, the same as in the previous quarter. While we acknowledge the potential of Primo Brands Corporation (NYSE:PRMB) 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 Primo Brands Corporation (NYSE:PRMB) and shared a list of fastest growing consumer stocks to buy. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.