Aoris International Fund cuts losses on Cintas repurchase in Q1 2026 letter
The Aoris International Fund reported Class A returns of -13.7% for the March quarter, citing artificial intelligence concerns in the software sector. The fund detailed its decision to repurchase Cintas Corporation at a lower valuation multiple after selling the position in July 2024.
Aoris Investment Management released its first-quarter 2026 investor letter for the Aoris International Fund, reporting a Class A (Unhedged) return of -13.7% and a Class C (Hedged) return of -10.1%. The fund underperformed its benchmark by 7.8% in local currency terms, as international equity markets represented by the MSCI AC World Accumulation Index ex Australia fell 5.8% in Australian dollar terms during the March quarter.
The letter identified Cintas Corporation (CTAS) as a key holding, noting the firm repurchased the business at a significantly lower earnings multiple than when it was sold in July 2024. Aoris had previously held the stock for six years before exiting for valuation reasons, describing Cintas as a high-quality business with impressive historical earnings growth.
Cintas, America’s largest uniform rental services provider, closed at $168.80 per share on June 23, 2026, with a market capitalisation of $67.54 billion. The company charges approximately $1.50 per worker per day to collect, clean, and replace uniforms for sectors including lodging, manufacturing, and healthcare, while also providing facility services such as entrance mats and fire safety inspections.
The fund highlighted Cintas’s customer retention capabilities, noting the business keeps clients for an average of more than 20 years. Despite the repurchase, the letter suggested that certain artificial intelligence stocks currently offer greater upside potential and carry less downside risk than Cintas, which has lost 23.01% over the past 52 weeks.
Investor concerns regarding the impact of artificial intelligence on software, data, and services sectors weighed on sentiment during the quarter. At the end of the first quarter, 63 hedge fund portfolios held Cintas Corporation, a decrease from 66 portfolios in the previous quarter, with the stock not appearing on the list of 40 most popular stocks among hedge funds heading into 2026.
