Weitz Large Cap Fund underperformed significantly in Q1 2026 but managers maintain conviction in concentrated portfolio now trading at attractive valuations. Added semiconductor basket including ASML, Taiwan Semi, and NVIDIA to capitalize on AI infrastructure theme. Software names like Microsoft and Salesforce detracted on AI disruption concerns. Portfolio reshaping accelerated to adapt to volatile, thematic markets.

Small-cap aerospace and defense specialist gained 3.1% in Q1, adding Honeywell before aerospace spin-off and building position in undervalued defense tech company FEIM. Butler National delivered strong results with 50% aerospace revenue growth. Portfolio positioned for continued defense spending growth and value realization through spin-offs and potential acquisitions.

LENS delivered 18.62% as Middle East war triggered energy supply shock, validating the Return to Tangibles thesis. Energy leadership emerged while gold consolidated after historic run. Manager views crisis as catalyst for secular commodity super-cycle acceleration. Structural forces of inflation, fiscal risks, and geopolitical tensions support continued tangible asset outperformance versus traditional 60/40 portfolios.

Weitz Multi Cap underperformed in Q1 2026 due to energy sector underweight during Middle East conflict-driven price spikes. Strong performance from SiriusXM and Old Dominion offset by weakness in HEICO and CoStar. Managers added Microsoft, Ingersoll Rand, and Repligen while selling Gartner. Maintaining fundamental value approach despite challenging headline-driven market environment.

ROCKLINC advocates precious metals as essential hedge against America's $108.5 trillion fiscal crisis, where liabilities grew four times faster than GDP since 2010. Gold and silver royalty companies drove Q1 outperformance amid historic metal rallies. Energy surged on Middle East tensions but reversal expected. Technology declined on AI concerns. Portfolio maintains defensive positioning with significant precious metals allocation.

Baron Fifth Avenue Growth Fund matched benchmark performance despite 10% decline in Q1 2026. AI adoption accelerated dramatically with clear revenue evidence emerging. Portfolio concentrated on highest conviction AI winners while reducing software exposure. Current valuations 21% below historical averages create attractive opportunity despite geopolitical tensions and oil price volatility.

Q1 2026 saw dramatic market rotation as Middle East conflict drove oil prices from $57 to $101 while AI disruption fears hammered technology stocks. Value crushed growth with energy leading and software lagging. Fed stayed hawkish amid rising inflation. International markets outperformed US equities. Gold surged as safe haven demand intensified.

Jensen Quality Mid Cap Fund's disciplined focus on companies with 15%+ ROE for ten consecutive years faced headwinds from AI disruption fears affecting software holdings and energy sector strength the fund avoids. Despite Q1 underperformance, the team maintains conviction in high-quality businesses with sustainable competitive advantages, adding AON, Sherwin-Williams, and Cadence Design Systems while exiting FactSet due to AI threats.

UBS delivered exceptional Q1 2026 results with $3.0 billion net profit and 17% return on CET1 capital, driven by strong wealth management flows and investment banking performance. Credit Suisse integration progresses on schedule with $0.8 billion additional cost saves. Strong capital position maintained despite regulatory headwinds from proposed Swiss framework changes.

Orbis International Equity pursues bottom-up value investing across global markets, holding Samsung, Genmab, Nintendo, Cemex, and Magnum. Their detailed Magnum analysis exemplifies the approach - the world's largest ice cream company trades at 14x earnings post-demerger despite strong competitive moats and operational improvement potential as a standalone business.

Oldfield Partners' global value fund fell 3.8% in Q1 2026 after strong prior performance. Manager maintains contrarian approach in unpopular sectors, tactically trading ArcelorMittal and holding challenged positions like easyJet despite Gulf War headwinds. Portfolio trades at 10x P/E, focusing on global opportunities outside US amid policy volatility concerns.

Troy reduced gold exposure after strong gains while maintaining AI positions in Alphabet and Microsoft despite elevated valuations. New yen position hedges dollar weakness expectations. Iran war creates fourth supply shock this decade, raising stagflation risks. Upcoming mega-IPOs and AI disruption increase volatility. Strategy emphasizes real assets and quality growth while managing inflation and geopolitical risks through selective positioning.

Spheria Global Opportunities outperformed in March despite Middle East tensions, benefiting from timely CF Industries addition as fertilizer supply disruptions boosted prices. Used Intertek weakness as buying opportunity at attractive 12x EBIT valuation. Portfolio repositioned toward quality businesses with strong cash generation and conservative balance sheets at sensible valuations.

Fund declined 7.95% as AI disruption fears triggered software sell-off affecting Microsoft and Roper, while Middle East conflict added volatility. Managers harvested losses in Roper, added Salesforce and Accenture, plus initiated Vulcan Materials and Pool Corp positions. Despite headline-driven volatility overshadowing fundamentals, they see improved long-term return prospects from current business value disconnects.

L&G turns defensive across fixed income as oil shock, AI disruption, and private credit stress converge. Credit spreads widened 10-20% in March with limited tightening potential from rich valuations. Reduced duration, increased liquidity, and selective quality positioning while maintaining energy overweights. Multiple overlapping risks create non-linear market behavior with greater probability of spread widening ahead.

Lazard's convertible arbitrage strategy capitalized on Q1 2026's elevated volatility driven by Middle East tensions and software sector pressure. Akamai and IREN convertibles led gains while Bill.com and software names detracted. Strong $53 billion issuance market and continued geopolitical uncertainty position convertibles favorably, with the portfolio well-hedged for broad risks.

Starboard Value sees Dynatrace as misunderstood software platform positioned to benefit from AI adoption rather than face disruption. Despite strong competitive position in observability market, shares have significantly underperformed due to margin concerns. Firm targets 500bps margin expansion through operational improvements while advocating aggressive share buybacks at attractive valuations, expecting doubled free cash flow by FY2029.

Signia operates concentrated small and micro-cap value strategies as liquid private equity alternatives, targeting undervalued companies below $8 billion market cap. With 25-35 holdings each, the strategies focus on quality companies with strong balance sheets and catalysts in an inefficient market segment, delivering 28.66% annualized returns since inception versus 16.54% benchmark returns.

SGA's U.S. Large Cap Growth portfolio declined 11.1% in Q1 2026, underperforming due to AI disruption fears that hammered software stocks. The firm maintains conviction in quality growth businesses trading at historically attractive valuations relative to the market. Portfolio fundamentals remain strong with expected 13% revenue and 19% earnings growth over three years, positioning for attractive risk-adjusted returns ahead.

SGA's EM Growth portfolio underperformed in Q1 2026 due to limited AI Hardware exposure and geopolitical disruption, despite strong fundamental execution by holdings. Portfolio trades at unprecedented discount to market since inception while delivering consistent mid-teens growth. Manager expects rotation toward quality compounders as conditions build for outperformance.

SGA's quality growth strategy underperformed in Q1 2026 as AI disruption and Middle East geopolitical tensions drove market volatility. Despite strong portfolio fundamentals with most holdings exceeding expectations, the strategy suffered from rotation away from proven compounders toward cyclical AI plays. Portfolio now trades at record discount to market, positioning for potential outperformance as conditions normalize.

SGA's international growth strategy underperformed in Q1 2026 due to limited AI hardware exposure and energy conflict dynamics, but portfolio fundamentals remain strong with companies delivering consistent growth. Trading at most attractive valuation versus market since 2017, manager sees compelling setup for quality compounders as momentum conditions moderate and rotation toward predictable growth accelerates.

Alluvial Fund delivered 3.0% returns in Q1 2026 despite Iran War volatility, benefiting from defensive positioning and the Peakstone REIT acquisition. The manager sees recent small-cap euphoria as premature but remains focused on deeply undervalued securities with predictable cash flows, holding cash for opportunities while continuing the successful strategy of investing in unpopular, overlooked businesses.

Pzena's value strategy declined 4.7% in Q1 amid Iran conflict volatility and AI disruption fears. The manager added to beaten-down positions including Humana and Cognizant, viewing concerns as overblown, while initiating new positions in Accenture and CDW at attractive valuations. Despite headwinds, they see exceptional long-term opportunities in the current environment.

GMO sees stark valuation divergence in emerging debt with hard currency credit rich and local currency debt very attractive. Excess credit spreads at 121 bps suggest negative returns ahead while EM rates and FX offer compelling value in top quartiles. Blended portfolios tilted maximum 70% local currency given extreme relative valuations.

Pzena's global small cap value strategy underperformed in Q1 amid geopolitical tensions and small cap weakness. The manager maintained focus on cyclical recovery plays, adding positions in turnaround stories like B&M retail and Evonik chemicals while trimming on valuation. Portfolio remains concentrated in businesses at earnings troughs with durable competitive positions trading at attractive valuations.

AI disruption threatens high-multiple growth stocks with long-duration cash flows, driving rotation toward dividend-paying HALO companies with physical moats. Miller/Howard's dividend strategy provides mathematical protection against growth chasing while delivering high current income at reasonable valuations, positioning the firm advantageously as markets rebalance away from vulnerable mega-cap growth names.

Emerging markets face oil shock differentiation with energy exporters outperforming importers. China well-positioned with strategic reserves and innovation focus. AI valuations due for healthy correction after Taiwan/Korea surge. India vulnerable to energy import dependence. Brazil overweight with policy support. Volatility persists if Middle East conflict extends.

Miller/Howard warns that AI disruption threatens high-growth software companies while advocating for dividend-paying stocks and asset-heavy HALO companies as protection. The firm argues that dividend investing creates natural barriers to overpaying for growth and provides better visibility in an uncertain environment where traditional competitive moats face erosion from technological advancement.

AI disruption threatens high-growth software companies with premium valuations, making their long-term cash flows increasingly uncertain. Miller/Howard advocates dividend investing and HALO stocks as protection, arguing that high dividend yields mathematically create lower P/E ratios and shorter duration cash flows, providing margin of safety in an age of technological disruption.

Miller/Howard's North American Energy Fund surged 38.91% in Q1 2026 as geopolitical turmoil in Venezuela and Iran validated their thesis of concentrating on politically stable North American energy assets. The fund benefits from reduced geopolitical risk while capturing upside from higher oil prices, with portfolio positioned for continued outperformance through sector tailwinds and improved fundamentals.

Diamond Hill's International strategy outperformed by 423bp in Q1 2026, driven by AI-related semiconductor holdings and energy positions benefiting from Middle East tensions. The portfolio added five new positions while maintaining focus on companies trading below intrinsic value. Management sees current volatility and geopolitical uncertainty creating favorable conditions for active stock selection.

Diamond Hill underperformed in Q1 due to AI positioning and consumer concerns despite energy sector strength. The team remains cautious but opportunistic, focusing on high-quality businesses and using volatility to initiate positions in durable franchises. Portfolio has become more defensive while maintaining exposure to geopolitical beneficiaries like defense and energy companies.

FPA Crescent rotated from AI winners Alphabet and TE Connectivity into undervalued SMID caps, international names, and healthcare. The fund delivered 16.06% trailing returns while maintaining 63.8% average risk exposure. Management is building positions in sectors with improved valuations, continuing their disciplined value-driven approach to capital allocation.

AI disruption threatens growth stocks with premium valuations as agentic AI erodes competitive advantages. Miller/Howard advocates dividend investing as superior hedge, emphasizing mathematical incompatibility between high yields and high P/E ratios. Firm maintains focus on HALO companies with physical assets while providing disciplined dividend income strategy amid market uncertainty.

AI disruption threatens high-growth software companies dependent on long-term cash flows, driving market rotation toward value and infrastructure stocks. Miller/Howard advocates dividend investing as protection, arguing high yields with strong coverage create lower P/E ratios and front-loaded cash flows that provide margin of safety against technological obsolescence and uncertain growth assumptions.

Pabrai Wagons ETF delivered 44% returns by investing in unloved global markets with zero S&P 500 overlap. Core positions include metallurgical coal miners, offshore drillers trading below replacement cost, and vertical software companies positioned to benefit from AI despite recent selloffs. The concentrated approach targets exceptional businesses with wide moats and superior capital allocation.

Value fund down 11.6% in Q1 on small cap volatility despite strong fundamentals. Portfolio trades at 40% of intrinsic value, creating opportunity similar to April 2020. Doubled Judges Scientific position, added Douglas Dynamics snowplow manufacturer. Manager sees temporary headwinds for quality businesses at deep discounts, expects recovery as values get recognized.

Healthcare fund underperformed on limited large-cap pharma exposure but maintains conviction in secular growth themes. Strong M&A activity with $33 billion Q1 deals supports biopharma thesis. Added diagnostic leaders Guardant Health and Natera while reducing risk in argenx. Manager sees attractive valuations and expects continued consolidation driven by patent cliff pressures and favorable regulatory environment.

Royal London Cautious Managed outperformed during volatile Q1 2026 by tactically reducing equity exposure as Iran conflict escalated while increasing commodities allocation. Oil surged 94% to $100, reigniting inflation concerns and forcing rate cut repricing. Investment Clock entered Overheat phase supporting commodities overweight. Technology valuations at concerning dot com era levels with AI innovations potentially overblown.

CrossingBridge warns against confusing abundant liquidity with durable value as oil markets show extreme backwardation, AI infrastructure demands massive capital, and private credit faces structural repricing. Manager emphasizes that when markets pay premiums for immediate delivery over financial claims, liquidity is becoming scarce and old rules of price and discipline matter more than ever.

Focus Capital navigated Q1 2026 volatility from the US-Iran war, benefiting from Valeura's strategic oil positioning while quintupling their Burford stake following the YPF litigation setback. The manager sees lasting oil supply benefits and views Burford's core business as significantly undervalued despite legal headwinds.

Iran conflict volatility drove Q1 selloff despite strong economic fundamentals and AI investment momentum. Oil surge to $120 reignited inflation fears, causing rotation from growth to value stocks. While US energy independence provides some insulation from 1970s-style stagflation, persistent inflation risks and geopolitical uncertainty warrant more cautious positioning and shorter-duration bond strategies.

Ithaka's concentrated growth strategy lagged in Q1 2026 amid geopolitical shocks and AI infrastructure uncertainty. Strong aerospace performance from Howmet offset technology weakness driven by AI disruption fears. The firm maintains conviction in high-quality growth companies with durable advantages, including surgical robotics leader Intuitive Surgical addressing vast addressable markets.

Crescat warns US markets are in historic bubble territory with three crash catalysts converging: Iran war inflation, AI malinvestment bust, and Fed tightening. Despite recent rallies, they maintain maximum conviction in precious metals miners as the optimal hedge, expecting 1970s-style stagflation where gold dramatically outperforms crashing equities.

AGT Partners delivered 13.9% in Q1 2026 despite Middle East conflict volatility. The fund trimmed oil-sensitive positions while adding to core holdings including alternative asset managers and Microsoft on AI fears. Semiconductor equipment suppliers showing recovery signs after four-year downturn. Energy and palm oil holdings provided portfolio protection. Management maintains conviction with team making additional subscriptions.

Deep Sail Capital's Q1 drawdown was driven by late-quarter volatility but has since recovered. The manager views AI infrastructure capex as the dominant market force, projecting $660-690 billion annual spending by hyperscalers. Key positions include defense technology leader Kraken Robotics and 5G equipment play AmpliTech Group, which forecasts 100% revenue growth in 2026 from secured contracts.

GreensKeeper used Q1 market weakness from Middle East conflict to add to core positions and initiate Amadeus IT Group. Despite 8.1% decline, manager maintains conviction in concentrated value approach, highlighting Berkshire Hathaway's fundamental strength and defense holdings' performance. Sees quality companies available but few bargains, emphasizing patience and discipline in current environment.

Small-cap growth strategy underperformed in volatile Q1 2026 as AI disruption fears drove software selloffs while semiconductor equipment benefited. Managers refined positioning by concentrating in AI beneficiaries rather than potential disruption targets. Despite near-term volatility, they maintain conviction in companies with durable competitive moats and proprietary data advantages positioned for AI-driven growth.

Baron Emerging Markets outperformed in volatile Q1 2026 despite Iran war disruption. AI semiconductor holdings led gains while new positions in energy, biotech, and beauty themes were added opportunistically. Manager maintains conviction in EM structural advantages from AI demand, supply chain diversification, and dollar weakness, viewing recent geopolitical volatility as attractive entry opportunity for long-term investors.