Andrew Hill Investment Advisors has released its third-quarter 2026 investor letter, reviewing a market pulled in competing directions. Rising oil prices, higher interest rates, and persistent inflation weighed on stocks and bonds, while resilient corporate earnings and continued investment in artificial intelligence supported the broader equity market.
The letter does not report an aggregate third-quarter return for client portfolios. For context, the S&P 500 gained 3.54% through September 22, while the Bloomberg U.S. Aggregate Bond Index declined 2.8%. Oil prices climbed sharply, and the Federal Reserve raised its benchmark rate to 3.75%–4.00%, which the letter describes as its first increase in more than three years.
Exposure to software, AI hardware, and selected strategic investments supported client account performance, although losses elsewhere and rising bond yields offset some gains. The letter highlights a pronounced divide between investment themes: an equal-weight basket of AI stocks returned an average of 13.0% during the quarter, compared with an 8.3% decline for a basket of traditional-economy stocks.
Looking ahead, the firm expects the AI investment cycle to continue but remains cautious about the broader stock market. Its concerns include higher rates, inflation, geopolitical tensions, constrained consumer spending, election uncertainty, and a potential slowdown in AI capital spending as additional computing capacity becomes available. Against that backdrop, Andrew Hill favors companies with solid earnings, higher cash balances, and a gradual increase in fixed-income exposure, noting that high-grade corporate bonds offer yields above 6%.
Garmin Ltd. (NYSE:GRMN) is a technology company that designs and manufactures navigation, communications, fitness, and sensor-based products for customers worldwide. Its portfolio spans smartwatches, cycling computers, outdoor navigation devices, marine electronics, aviation systems, and automotive technologies. On October 29, 2026, its shares closed at $279.94, an increase of 2.73% from the previous session, giving the company a market capitalization of approximately $53.94 billion.
Here’s what Andrew Hill Investment Advisors has to say about :
“Garmin continues to differentiate through a portfolio of specialized products spanning fitness, outdoor recreation, marine, and aviation markets. While many investors still associate the company primarily with consumer GPS devices, Garmin has successfully expanded into higher-value niches where product reliability, brand reputation, and engineering expertise matter more than price. The company has also demonstrated an ability to grow revenue across multiple end markets while maintaining strong margins and a debt-free balance sheet. We believe Garmin’s collection of leading positions in attractive niche markets is often overlooked, resulting in a business that is more diversified and resilient than commonly perceived.”
On October 28, 2026, Garmin Ltd. (NYSE: GRMN) reported record third-quarter revenue of $1.99 billion, an increase of 12% year over year, while operating income climbed 34% to $612 million. Pro forma earnings increased 39% to $2.76 per share, supported by growth across its fitness, outdoor, aviation, and marine businesses. Management raised its full-year outlook to approximately $8.15 billion in revenue and $10.80 in pro forma earnings per share. Quarterly margins also benefited from approximately $33 million in refunds of previously paid tariffs.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
