| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.82% | 10.52% | 12.49% |
The Northern Large Cap Value Fund underperformed its benchmark in Q2 2026 despite strong absolute gains of 10.52%, trailing the Russell 1000 Value Index which returned 13.87%. The quarter was characterized by significant outperformance in Information Technology, particularly semiconductors like MU and INTC which benefited from AI buildout and memory chip shortages, recording over 200% annualized returns. While value stocks broadly outperformed non-value stocks in the quarter, the fund's emphasis on high-quality characteristics detracted from relative performance. The macroeconomic backdrop remained challenging with persistent inflation above the Fed's target driven by tariffs and services inflation, prompting the Fed to maintain a hawkish stance with unchanged rates. Labor markets softened modestly with unemployment rising toward the low-4% range. Looking ahead, the manager maintains conviction in their quality-value approach, believing investors will continue to favor inexpensive, well-managed companies with sustainable cash flows as an effective way to avoid value traps and outperform over the full economic cycle.
The fund invests in attractively valued large-cap stocks with strong peer-relative profitability, cash flows, and management efficiency, believing this quality-oriented value approach will outperform over the full economic cycle while avoiding value traps.
The manager believes investors will continue to favor inexpensive, well-managed and highly profitable companies with sustainable and efficient cash flow. Allocating to this segment of stocks is viewed as an effective way to avoid value traps and outperform the benchmark in the near term as well as over the full economic cycle.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 18 2026 | 2026 Q2 | INTC, MU | AI, large cap, Quality, semiconductors, value | - | Northern Large Cap Value Fund posted 10.52% in Q2 2026 but underperformed its benchmark as high-quality value stocks lagged despite broad value outperformance. Semiconductors like MU and INTC surged over 200% on AI demand and memory shortages. The manager maintains conviction in quality-value investing, targeting inexpensive, profitable companies with strong cash flows to outperform through the cycle while avoiding value traps. |
| May 11 2026 | 2026 Q1 | - | credit, energy, large cap, Quality, value | - | Northern Large Cap Value Fund lagged its benchmark despite value stocks outperforming broadly. Geopolitical tensions boosted Energy while mega-cap Tech weakness hurt performance. The fund's quality tilt within value stocks detracted this quarter. Management remains confident in their approach of targeting inexpensive, profitable companies with strong cash flows to outperform over full cycles. |
| Feb 5 2026 | 2025 Q4 | NOLVX | healthcare, large cap, Pharmaceuticals, Quality, value | - | Northern Large Cap Value Fund outperformed its benchmark in Q4 2025, benefiting from strong value stock performance and quality tilts. The fund focuses on attractively valued companies with strong fundamentals. Healthcare led sector performance while defensive sectors lagged. Management remains optimistic about high-quality value opportunities going forward. |
| Nov 11 2025 | 2025 Q3 | - | AI, large cap, Outperformance, Quality, technology, value | - | Northern's Large Cap Value Fund outperformed by 148 basis points in Q3 2025, driven by strong value and quality factor performance. The fund's focus on attractively valued, high-quality companies with strong profitability and cash flows proved effective as value stocks significantly outperformed. Management maintains conviction in their approach, expecting quality fundamentals at attractive valuations to continue driving outperformance. |
| Jul 31 2025 | 2025 Q2 | - | AI, large cap, Quality, technology, Trade Policy, value | - | Northern's Large Cap Value Fund underperformed despite favorable conditions for value stocks and quality companies. The fund's disciplined approach to high-quality, attractively valued stocks with strong fundamentals positioned it well as value outperformed and quality factors added returns, though stock selection detracted from overall performance during the quarter. |
| Mar 31 2025 | 2025 Q1 | - | large cap, Quality, Trade Policy, underperformance, value | - | Northern Large Cap Value Fund underperformed in Q1 2025 amid trade policy uncertainty. The fund's value and quality tilts added performance, but poor stock selection was the primary detractor. Management maintains conviction in high-quality, attractively valued companies, believing strong fundamentals at reasonable prices will drive future outperformance. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
Semiconductor CycleSemiconductor companies such as MU and INTC benefited from the broader AI buildout and memory chip crunch, recording over 200% annualized returns in the quarter. Information Technology significantly outperformed the rest of the market, with semiconductors leading the gains. |
AI Memory Semiconductors |
ValueThe fund invests in attractively valued stocks with strong peer-relative profitability, cash flows, and management efficiency. Stocks that fit the fund's definition of value outperformed those that did not in the quarter. The manager believes investors will continue to favor inexpensive, well-managed and highly profitable companies with sustainable and efficient cash flow. |
Profitability Cash Flow Quality | |
QualityThe fund's tilt towards high quality stocks largely detracted from performance, particularly for high quality stocks within the proprietary value universe. Despite this short-term underperformance, the manager continues to emphasize quality characteristics such as profitability, cash flows, and management efficiency as a way to avoid value traps and outperform over the full economic cycle. |
Profitability Cash Flow Management | |
| 2026 Q1 |
OilOil prices rose sharply due to Middle East conflict, driving Energy sector outperformance in the quarter. Higher commodity prices benefited energy companies significantly. |
Energy Commodities Geopolitics |
ValueThe fund focuses on attractively valued stocks with strong profitability and cash flows. Value stocks outperformed in both Russell 1000 and Russell 1000 Value indices during the quarter. |
Value Quality Profitability | |
QualityFund emphasizes high quality stocks with strong peer-relative profitability, cash flows, and management efficiency. However, high quality stocks within the value universe slightly detracted from performance this quarter. |
Quality Profitability Management | |
Private CreditCredit spreads widened as investors weighed potential negative spillover effects from leverage in the private credit space amid growing uncertainty. |
Credit Leverage Risk | |
| 2025 Q4 |
TechnologyThe Fund invests at least 80% of net assets in technology companies across multiple sub-industries including IT consulting, internet services, application software, communications equipment, semiconductors, and interactive media. The portfolio focuses on companies with sector-leading cash flows, attractive valuations, and sustainable profitability prospects. |
Software Hardware Semiconductors Internet Communications |
| 2025 Q3 |
ValueThe fund invests in attractively valued stocks with strong peer-relative profitability, cash flows, and management efficiency. Stocks that fit the fund's definition of value significantly outperformed those that did not during the quarter. The fund will continue seeking exposure to high-quality, inexpensive companies. |
Value Investing Profitability Cash Flow Valuation |
QualityThe fund's tilt towards high quality stocks added to performance, particularly benefiting from underweight to low quality names which underperformed the benchmark. The importance of high quality company fundamentals, particularly those trading at attractive valuations, is expected to stand out going forward. |
Quality Fundamentals Management Efficiency Outperformance | |
AIU.S. equities were boosted by the broader tech space as investor sentiment around the artificial intelligence narrative gained steam during the quarter. Tech-related exposure also bolstered emerging market equities, particularly in China and broader Asia. |
Artificial Intelligence Technology Sentiment Narrative | |
| 2025 Q2 |
ValueThe fund invests in attractively valued stocks with strong peer-relative profitability, cash flows, and management efficiency. Stocks that fit the fund's definition of value, which considers normalized as well as contemporaneous valuation metrics, outperformed the Russell 1000 Value index in the quarter. |
Value Valuation Profitability |
QualityThe fund's tilt towards high quality stocks added to performance, particularly benefiting from underweight to low quality names which significantly underperformed the benchmark index. The manager emphasizes the importance of high quality company fundamentals. |
Quality Fundamentals Management | |
AIU.S. equities received a substantial boost from mega cap tech, given the resurgence in optimism around AI adoption. This contributed to double-digit gains for U.S. equities during the quarter. |
AI Technology Mega Cap | |
| 2025 Q1 |
Trade PolicyPolicy uncertainty was the main surprise for the first quarter, with trade policy as the focal point having potential widespread implications for both global trade and geopolitical relations. This uncertainty weighed on survey-related economic data with perceived risks around lower growth and higher inflation. |
Trade Policy Geopolitical Uncertainty Growth |
ValueThe fund invests in attractively valued stocks with strong peer-relative profitability, cash flows, and management efficiency. Stocks that fit the fund's definition of value, considering normalized as well as contemporaneous valuation metrics, outperformed the R1000 Value index in the quarter. |
Value Valuation Profitability Quality Metrics | |
QualityThe fund's tilt towards high quality stocks added to performance, as high quality stocks within R1000 Value outperformed low quality stocks and the value benchmark. The manager emphasizes the importance of high quality company fundamentals, particularly those trading at attractive valuations. |
Quality Fundamentals Profitability Efficiency Performance |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| MU | Information Technology significantly outperformed the rest of the market, where semiconductor companies such as MU and INTC benefited from the broader AI buildout and memory chip crunch, recorded over 200% annualized returns in the quarter. |
| INTC | Information Technology significantly outperformed the rest of the market, where semiconductor companies such as MU and INTC benefited from the broader AI buildout and memory chip crunch, recorded over 200% annualized returns in the quarter. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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