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Fenimore Asset Management, an investment management company, released its Q2 2026 investor letter. The letter can be downloaded here. U.S. equity markets saw broad gains in Q2, driven by strong corporate earnings, economic resilience, and enthusiasm for artificial intelligence (AI). Major indices reached all-time highs, though the energy sector declined. Continued earnings growth, especially among AI-related investments, supported the rally. Technology, particularly semiconductors, led performance as demand for AI infrastructure surged. Despite macroeconomic uncertainties and interest rate influences, Fenimore remains committed to investing in high-quality businesses. The Fenimore Small Cap Strategy returned 9.51% in the quarter, lagging the Russell 2000 Index's 21.49% gain. The underperformance was largely driven by avoiding lower-quality tech stocks linked to data center expansions. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.

In its second-quarter 2026 investor letter, Fenimore Asset Management highlighted Boston Omaha Corporation (NYSE:BOC). Boston Omaha Corporation (NYSE:BOC) is a holding company that operates in broadband telecommunications, outdoor billboard advertising, surety insurance (bonds), and asset management segments. On September 17, 2026, Boston Omaha Corporation (NYSE:BOC) closed at $408.79 per share. Over the past month, Boston Omaha Corporation (NYSE:BOC) declined 16.83%, but its shares are up 28.94% over the past year. Boston Omaha Corporation (NYSE:BOC) has a market capitalization of $78.51 billion, and its stock has traded within a 52-week range of $366.00 to $615.79.

Fenimore Asset Management stated the following regarding Boston Omaha Corporation (NYSE:BOC) in its Q2 2026 investor letter:

"We sold our position in Boston Omaha Corporation (NYSE:BOC). We bought the stock because we felt management could allocate capital well and grow the business. That worked for a while, but BOC's fiber operation underperformed and better opportunities arose elsewhere."

Boston Omaha Corporation (NYSE:BOC) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 15 hedge fund portfolios held Boston Omaha Corporation (NYSE:BOC) at the end of the second quarter, compared to 14 in the previous quarter. While we acknowledge the potential of Boston Omaha Corporation (NYSE:BOC) 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 Boston Omaha Corporation (NYSE:BOC) and highlighted the company's $30 million share repurchase program. 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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This article is originally published at Insider Monkey.