| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.15% | -1.9% | -1.9% |
BlackRock's Mid-Cap Value Fund posted negative returns of -1.84% in Q1 2026, underperforming the Russell Midcap Value Index which gained 3.68%. The fund's value-oriented approach benefited from a market rotation favoring value over growth stocks, as earnings trends converged and investors sought asset-heavy businesses with less AI disruption exposure. Key contributors included investment decisions in consumer discretionary, particularly household durables, and security selection in utilities and healthcare biotechnology. Detractors were primarily in industrials professional services, energy positioning, and IT electronic equipment selection. The fund increased allocations to IT and energy while reducing consumer staples and materials exposure. Portfolio management emphasizes companies with strong balance sheets, durable cash flows, and attractive valuations that pay sustainable dividends. The strategy aims to provide mid-cap equity returns with reduced volatility amid ongoing market uncertainty from geopolitical tensions, energy price volatility, and AI-driven disruption across industries.
Value-oriented strategy focused on mid-cap companies with strong balance sheets, durable cash flows, and attractive valuations that pay sustainable and growing dividends.
The fund aims to provide stabilizing support and help navigate uncertainty while capturing opportunities through active management, focusing on strong balance sheets, durable cash flows, and attractive valuations.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 6 2026 | 2026 Q1 | - | dividends, energy, financials, industrials, mid cap, value | - | BlackRock's Mid-Cap Value Fund declined 1.84% in Q1 2026, underperforming its benchmark despite benefiting from value outperforming growth. Strong consumer discretionary and utilities selection was offset by weak industrials and energy positioning. The fund increased IT and energy allocations while maintaining focus on dividend-paying companies with strong fundamentals. |
| Feb 11 2026 | 2025 Q4 | BAX, BDX, CAH, CVS, FCNCA, FIS, MMS, SSNC, WCC, WDC | AI, dividends, financials, healthcare, industrials, inflation, mid cap, value | - | BlackRock's Mid-Cap Value Fund delivered 13.68% returns in 2025 through disciplined value investing in dividend-paying mid-caps. Manager David Zhao maintains constructive but cautious 2026 outlook, citing AI-driven market exuberance and inflation risks. Strategy emphasizes selectivity and risk control while participating in secular themes through undervalued opportunities beyond narrow AI leadership. |
| Oct 28 2025 | 2025 Q3 | BAX, BDX, CAH, CVS, FCNCA, FIS, MMS, WDC, XBI | dividends, financials, healthcare, mid cap, technology, value | - | BlackRock's Mid-Cap Value Fund delivered 5.60% in Q3 2025, led by strong IT and industrials selection. The value-focused strategy targets dividend-paying mid-caps with solid fundamentals and attractive valuations. Despite macro uncertainty, managers maintain discipline around valuations while positioning for AI-driven opportunities and Fed easing tailwinds. |
| Aug 11 2025 | 2025 Q2 | BAX, BDX, CAH, CVS, FCNCA, FIS, LHX, SSNC, STM, WDC | AI, dividends, financials, healthcare, Mid-cap, technology, value | - | BlackRock's Mid-Cap Value Fund delivered 5.57% returns in Q2 2025, benefiting from consumer staples, IT, and real estate positioning. Despite market volatility from geopolitical tensions, the fund maintains its disciplined value approach focused on companies with strong balance sheets and cash flows. AI optimism continues driving results while full valuations require precision in stock selection. |
| Mar 31 2025 | 2025 Q1 | BAX, CAH, CVS, EA, FCNCA, FIS, LH, LHX, SEE, SSNC | AI, dividends, financials, healthcare, mid cap, Quality, Trade Policy, value | - | BlackRock's Mid-Cap Value Fund outperformed its benchmark despite negative Q1 returns, benefiting from the market rotation into value stocks driven by trade tensions and AI spending skepticism. Strong healthcare and industrials selection offset utilities weakness. Managers increased healthcare and financials exposure while maintaining focus on quality businesses with reasonable valuations for downside protection. |
| Dec 31 2024 | 2024 Q4 | BAX, CAH, EA, FCNCA, FIS, KHC, LHX, SEE, SSNC, WDC | dividends, financials, healthcare, industrials, mid cap, Quality, value | - | BlackRock's Mid-Cap Value Fund delivered 9.40% returns in 2024 despite a negative Q4. The fund targets dividend-paying mid-cap companies with strong fundamentals at attractive valuations. Managers are optimistic about 2025 prospects from economic strength and policy tailwinds but remain cautious about expanded valuations, maintaining their disciplined value approach. |
| Sep 30 2024 | 2024 Q3 | BAX, CAH, CVS, FCNCA, FIS, KHC, LHX, SEE, SSNC, WDC | dividends, financials, healthcare, industrials, mid cap, value | - | BlackRock's Mid-Cap Value Fund posted 7.87% Q3 returns through strong security selection in industrials and technology. The dividend-focused strategy targets sustainable income from mid-cap companies. Managers expect fourth-quarter volatility from Fed policy and elections but see opportunities from rate cuts and market normalization benefiting skilled stock selection. |
| Jun 30 2024 | 2024 Q2 | BAX, CAH, FCNCA, FIS, GM, KHC, LHX, SEE, SSNC, WDC | dividends, healthcare, industrials, materials, mid cap, value | - | BlackRock's Mid-Cap Value Fund outperformed in Q2 despite a -1.92% return, driven by strong industrials and materials selection. Managers favor underappreciated value earnings growth over stretched tech valuations, positioning defensively in healthcare while remaining selective in cyclicals. They see U.S. growth potential through consumer resilience and AI productivity despite late-cycle inflation and balance sheet risks. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
ValueValue stocks outperformed growth stocks during the quarter as earnings trends converged and investors gravitated toward asset-heavy businesses with less exposure to AI-driven obsolescence. The fund's value-oriented strategy focuses on strong balance sheets, durable cash flows, and attractive valuations. |
Value Growth Valuations Balance Sheets |
AIContinued disruption from advances in artificial intelligence created market volatility. Investors moved toward asset-heavy businesses with less exposure to AI-driven obsolescence, suggesting concerns about AI's disruptive impact on certain business models. |
AI Disruption Technology | |
| 2025 Q4 |
AIAI was a dominant market driver of U.S. stocks and continues to influence market leadership. The AI-driven rally led to historic levels of market concentration with just five stocks accounting for nearly 45% of the S&P 500's total return in 2025. Strong AI-related investment was the backbone of U.S. growth in 2025. |
Artificial Intelligence Technology Market Concentration Growth Innovation |
RatesThe Federal Reserve has cut interest rates 1.75% since 2024, easing financial conditions and supporting markets. The Fed resumed rate cuts in September and markets expect further easing into 2026, albeit at a slower pace. Historically, equities have responded favorably following the restart of easing cycles. |
Federal Reserve Interest Rates Monetary Policy Easing Financial Conditions | |
InflationThe inflation storm that dominated recent years appeared to be easing, at least in the short term. November and December inflation surprised to the downside, easing investor concerns about persistent inflation pressures. However, inflation is likely to remain above target near term. |
Consumer Prices Federal Reserve Monetary Policy Economic Data | |
DollarThe U.S. dollar fell more than 9% during 2025, pressured by a high starting valuation and mounting concerns about global investor concentration in U.S. assets. With the Federal Reserve still focused on easing policy, narrowing interest rate differentials may drive a further decline in the dollar. |
Currency Exchange Rates Federal Reserve International | |
| 2025 Q3 |
ValueThe fund maintains a value-oriented strategy focused on companies with resilient earnings, strong balance sheets, and attractive valuations. This fundamentals-first approach provides a solid foundation and positions portfolios to navigate volatility effectively while seizing opportunities through active management. |
Value Fundamentals Valuations Balance Sheets Earnings |
DividendsThe fund's investment approach specifically targets mid capitalization companies that pay attractive, sustainable and growing dividends with the aim of providing mid capitalization equity returns with less volatility. |
Dividends Sustainable Growing Income | |
| 2025 Q2 |
AIOptimism about artificial intelligence endures, with companies emphasizing it in earnings calls and delivering strong results. The fund views AI as a continuing driver of market performance despite broader volatility. |
Artificial Intelligence Earnings Technology Growth Innovation |
ValueThe fund remains anchored in a value-oriented strategy, focused on companies with strong balance sheets, durable cash flows, and reasonable valuations. This approach offers stability in an environment where full valuations demand precision and discipline. |
Value Investing Balance Sheets Cash Flows Valuations Discipline | |
| 2025 Q1 |
ValueTrade tensions and AI infrastructure spending scrutiny have driven rotation into value stocks, which outperformed growth stocks due to attractive valuations and earnings growth convergence. The fund emphasizes discipline in selecting high-quality businesses with strong fundamentals and reasonable valuations. |
Value Growth Valuations Rotation Quality |
AIOptimism about artificial intelligence infrastructure spending is under scrutiny following Chinese company DeepSeek's AI development, which raised questions about whether massive capital expenditure leads to tangible financial returns and cast doubt on growth stocks' premium valuations. |
AI Infrastructure Capital Expenditure Growth Valuations | |
Trade PolicyEscalating trade tensions have brought volatility and inflationary pressures to financial markets, contributing to market uncertainty and driving rotation from growth to value stocks. |
Trade Tensions Volatility Inflation Policy | |
| 2024 Q4 |
ValueThe fund focuses on finding high-quality businesses with clean balance sheets, good franchises, and savvy management at attractive valuations. The managers emphasize avoiding momentum chasing and maintaining discipline in their value-oriented approach despite market conditions. |
Value Valuations Quality Franchises Discipline |
DividendsThe fund's investment approach specifically targets mid-capitalization companies that pay attractive, sustainable and growing dividends. This dividend focus is central to the fund's strategy of providing mid-cap equity returns with less volatility. |
Dividends Sustainable Growing Income | |
| 2024 Q3 |
DividendsThe fund invests in mid-capitalization companies that pay attractive, sustainable and growing dividends with the aim of providing mid-capitalization equity returns with less volatility. |
Dividend Growth Income Yield Sustainability |
| 2024 Q2 |
ValueValue earnings growth is underappreciated and may offer an attractive risk-return skew given differences in expectations. Valuations look stretched due to large technology companies pulling indexes and portfolios to be more growth-oriented. |
Value Earnings Growth |
DividendsThe fund invests in mid-capitalization companies that pay attractive, sustainable and growing dividends with the aim of providing mid-cap equity returns with less volatility. |
Dividends Quality Volatility |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
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| TICKER | COMMENTARY |
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