Kingdom Capital Advisors (KCA) has revealed details of its investment performance for the first quarter of 2026, showcasing significant gains despite market turbulence. The firm’s KCA Value Composite surged by 8.01% (after fees), notably outperforming major indices including the Russell 2000 TR (0.89%), the S&P 500 TR (-4.33%), and the NASDAQ 100 TR (-5.82%).
Since its inception in January 2022, the composite has achieved an annualised return of 22.81%, dwarfing the Russell 2000’s 4.80% and demonstrating a cumulative outperformance exceeding 115%. KCA attributes this success to its strategic allocation in special situations and deep value investments, positioning the composite for continued robust performance.
The investor letter highlighted TSS, Inc. (NASDAQ:TSSI), a data centre services company, as a key stock. The company focuses on the design, deployment and maintenance of end-user and enterprise systems. As of April 7, 2026, TSS, Inc. closed at $12.85 per share, marking a 7.62% increase over the past month and a substantial 69.97% gain over the previous 52 weeks. The company boasts a market capitalisation of $370.66 million.
KCA reported exiting its position in TSS, Inc. with profits, stating, "Following a ~50% decline due to delayed rack integration volumes (highlighted in our Q4 letter), the company’s results in March confirmed a successful facility ramp. The stock doubled from its lows, and we exited the position with gains, capping our third profitable cycle in this name over the past two years."
According to database analysis, nine hedge fund portfolios held TSS, Inc. at the close of the fourth quarter, an increase from seven in the preceding quarter.
While acknowledging the potential of TSS, Inc. as an investment, analysts suggest that certain AI stocks present greater upside potential with reduced downside risk.
