American Century Investments, an investment management company, released its first-quarter 2026 investor letter for the “American Century Investments Small Cap Value Fund.”  A copy is available to download here. Equity markets encountered challenges during the quarter, initially due to fears of AI disruption and later due to the conflict in Iran. The Fund's Investor Class returned 3.85% for the quarter, outperforming a 4.96% return for the Russell 2000 Value Index. While the Industrial and Materials sectors underperformed, the exposure to Energy positively impacted relative performance. The portfolio focuses on investing in small-cap companies with undervalued quality and earnings potential. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, American Century Investments Small Cap Value Fund highlighted stocks like Graphic Packaging Holding Company (NYSE: GPK ). Graphic Packaging Holding Company (NYSE:GPK) is a leading consumer packaging company that serves brands in food, beverage, foodservice, household, and other consumer products. On June 8, 2026, Graphic Packaging Holding Company (NYSE:GPK) closed at $10.52 per share. One-month return of Graphic Packaging Holding Company (NYSE:GPK) was 3.95%, and its shares lost 53.20% over the past 52 weeks. Graphic Packaging Holding Company (NYSE:GPK) has a market capitalization of $3.12 billion.

American Century Investments Small Cap Value Fund stated the following regarding Graphic Packaging Holding Company (NYSE:GPK) in its Q1 2026 investor letter:

"Graphic Packaging Holding Company (NYSE:GPK). The company manufactures sustainable paper-based packaging for food, beverages, and consumer goods. We believe that it has struggled as the packaging demand has been impacted by a weaker low-end consumer. The company reported a weak fourth quarter, and full-year guidance was below expectations."

Graphic Packaging Holding Company (NYSE:GPK) is not on our list of  40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 48 hedge fund portfolios held Graphic Packaging Holding Company (NYSE:GPK) at the end of the first quarter, compared to 49 in the previous quarter. While we acknowledge the potential of Graphic Packaging Holding Company (NYSE:GPK) 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.