Linde plc (LIN) Adds Exposure to Industrial Gases and Secular Growth Trends Attiya Zainib Wed, October 14, 2026 at 9:57 AM EDT 3 min read ^GSPC -0.60% LIN -0.14% Trade Linde on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Sirmium Capital recently released its quarterly Q3 2026 investor letter. A copy of the letter can be downloaded here. The letter examined a highly concentrated, AI-driven market in which a narrow group of technology and infrastructure-related stocks supported headline indexes while many other businesses remained substantially below their previous highs. Sirmium reported an average client return of -2.42% for the quarter, compared with a 2.38% gain for the S&P 500, but argued that short-term performance should be assessed in the context of its long-term, fundamentals-based value-investing process. The firm highlighted that the ten largest S&P 500 constituents represented approximately 40% of the index, while rising AI infrastructure spending raised questions about financing risks: capital expenditures at four major cloud infrastructure builders increased 75% over the year to June, compared with 34% growth in operating cash flow, and the three largest hyperscalers added roughly $207 billion in combined long-term debt. Sirmium believes AI demand remains genuine, but cautions that aggressive borrowing and uncertain infrastructure economics could expose lenders and highly leveraged businesses to losses even if the technology ultimately transforms the economy. Looking ahead, the firm sees potential opportunities in undervalued, durable businesses as market concentration and emotional investing create mispricing, emphasizing independent analysis, capable management, competitive advantages, and the discipline to invest over years rather than quarters. During Q3, it increased several existing positions and initiated small positions in two additional businesses, reflecting its willingness to use market weakness to pursue long-term value. In addition, please check the Fund's top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Sirmium Capital discussed initiating a small position in Linde plc (NASDAQ:LIN). Linde plc (NASDAQ:LIN) is a global industrial gases and engineering company supplying gases and related services to sectors including healthcare, manufacturing, electronics, and energy. The one-month return of Linde plc (NASDAQ:LIN) was 6.74% while its shares traded between $387.78 and $548.20 over the last 52 weeks. On October 13, 2026, Linde plc (NASDAQ:LIN) stock closed at approximately $492.11 per share, with a market capitalization of about $226.53 billion.
Sirmium Capital stated the following regarding Linde plc (NASDAQ:LIN) in its Q3 2026 investor letter:
Linde plc (NASDAQ:LIN) operates in one of the best industry structures available to a long-term investor: industrial gases is effectively a global oligopoly, and most contracts are long-term, on-site arrangements with built-in price escalators tied to inflation. That's about as close to a toll road as you get outside of payments. Linde also sits at the center of several genuine secular tailwinds, semiconductor fabrication, hydrogen, and industrial decarbonization, all of which require the specialty gases Linde supplies. We started with a small position while we continue building out the full thesis.
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Linde plc (NASDAQ:LIN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 92 hedge fund portfolios held Linde plc (NASDAQ:LIN) at the end of the second quarter, which was 104 in the previous quarter. While we acknowledge the risk and potential of Linde plc (NASDAQ:LIN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 Linde plc (NASDAQ:LIN) and shared why the company's moat is widening. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.
This article is originally published at Insider Monkey.
