Leaders at the Bell with Eduardo Borberg-Mendoza, Managing Director, GenTrust, June 10, 2026

Eduardo Borberg-Mendoza, Managing Director at GenTrust, joined Leaders at the Bell to discuss current market conditions following the June CPI release and ahead of the first Federal Reserve meeting chaired by Kevin Warsh. Borberg-Mendoza noted that first quarter 2026 earnings exceeded expectations, with over 85 percent of companies beating estimates and year-over-year earnings growth exceeding 20 percent. While artificial intelligence-related technology companies have driven much of this performance, strength has also emerged across financials, materials, commodities, European markets, emerging markets, and Japan. He emphasized the ongoing infrastructure investments in data centers, chips, and servers supporting AI development, while acknowledging uncertainty about whether efficiency gains might reduce future hardware requirements.

Regarding inflation and monetary policy, Borberg-Mendoza described GenTrust's positioning as neutral given current economic data. The CPI headline figure of 4.2 and core reading of 2.9 remain elevated compared to target levels, while robust employment growth continues. He suggested the data supports maintaining current interest rates rather than immediate cuts or hikes, particularly as geopolitical conflicts impact oil prices with potentially broader inflationary effects. Borberg-Mendoza anticipates that incoming Fed Chair Warsh will follow a data-dependent approach, noting that improved productivity from AI adoption could allow companies to grow output without necessarily driving higher prices.

On portfolio management, Borberg-Mendoza discussed GenTrust's use of options strategies including protective puts and covered calls on megacap technology positions, which generated strong returns in the first quarter as positions were closed profitably. The firm maintains diversified sector exposure through equal-weight strategies while acknowledging recent sector rotation from technology into cyclicals. He confirmed that artificial intelligence tools have become integral to daily operations at GenTrust, enhancing efficiency in research, presentations, communications, and data analysis.