Fenimore's Dividend Focus Fund fell 4.04% in Q1 as AI disruption fears hit software and insurance holdings despite strong fundamentals. Portfolio earnings expected to grow 13% in 2026 with 80% posting positive surprises. Manager adding to high-conviction names at compressed valuations, maintaining focus on quality dividend-paying companies for long-term compounding.

Fenimore's Value Fund underperformed in Q1 due to insurance broker exposure amid rate softening and AI fears. Manager views AI disruption concerns as overblown for complex commercial businesses, adding to insurance brokers and S&P Global on weakness. Strong earnings growth across holdings despite lagging stock prices has compressed valuations to compelling levels for long-term compounding.

Global value fund trading at 6.0x EBITDA added six new positions during Iran war dislocations. Manager sees AI fears creating opportunities in misperceived victims. Key holding AMA Group trades at 3.1x EBITDA despite market leadership. Strong 2025 performance of 19% followed by Q1 decline due to USD strength and commodity headwinds.

Driehaus Micro Cap Growth outperformed by 665bps in Q1 2026 despite Iran War volatility. AI-driven technology holdings surged 30.7% while energy benefited from geopolitical supply disruptions. Strategy maintains overweight industrials and energy positioning. Key risks include fragile ceasefire and private credit stress, but small cap fundamentals remain strong with attractive valuations.

Driehaus Small/Mid Cap Growth outperformed by 450bps in Q1 2026 despite Iran War volatility, benefiting from AI infrastructure, grid upgrade, and energy themes. Strategy positioned in tech hardware, industrials, and energy while avoiding disrupted sectors. Manager expects strong recovery if ceasefire holds and Strait of Hormuz reopens, with small caps offering compelling valuations and accelerating earnings.

Iran conflict and Strait of Hormuz closure created massive energy disruption comparable to 1956 Suez Crisis, driving oil prices up 50-100% and broad market retreat. Technology led declines on AI concerns while value outperformed. Despite systemic risks, broadening earnings growth, moderating core inflation, and domestic political pressure for resolution provide reasons for measured optimism.

Q1 2026 confirmed Westfield's broadening thesis before Iran's Strait of Hormuz closure created a one-variable energy market. Underlying economic improvement remains genuine with ISM above 50 and small caps outperforming. AI narratives are maturing toward selectivity while private credit shows stress. Technical washout signals constructive setup for active management.

Focus Wealth Management delivered positive returns in Q1 2026 despite geopolitical chaos from Iranian war and energy market disruptions. The manager used volatility to add quality names like Microsoft and data companies, emphasizing diversification over concentrated AI bets. They expect higher inflation from supply chain disruptions and remain cautious on credit while finding opportunities in previously expensive large caps.

The post-Cold War investment paradigm has ended, requiring portfolios built for higher geopolitical risk, inflation regime dynamics, and private credit structural problems. Traditional 60/40 portfolios failed in Q1 2026 while commodities and trend-following strategies outperformed as designed. Evolve is launching a private markets fund to capitalize on private credit dislocations and secondary market opportunities.

L1 Capital underperformed in Q1 2026 as markets oversimplified AI disruption risks and geopolitical uncertainty. High-quality software and payments companies are being mispriced despite strong fundamentals and adaptation capabilities. The fund sees compelling opportunities with almost every holding trading at or below fair value ranges, using market dislocation to selectively increase exposure to quality businesses.

Munro returned -6.2% in Q1 2026 as AI infrastructure stocks outperformed while hyperscalers faced disruption concerns. Iran war and Strait of Hormuz closure created market volatility. Fund positioned for USD 650bn AI capex cycle through power, networking, and storage enablers while avoiding software disruption risk. Bullish medium-term assuming conflict resolution.

The fund fell 12.4% in a volatile quarter dominated by AI disruption fears and profit disappointments. Despite healthy underlying business performance from holdings like AUB Group, indiscriminate selling created significant price dislocations. The manager views current volatility as opportunity, maintaining concentrated positions while selectively adding to quality businesses trading below intrinsic value.

Staude Capital's global value fund fell 1.3% in March amid Iran conflict uncertainty, but discount capture strategy and currency hedging provided protection. Amedeo Air Four Plus takeover delivered 46% annualized returns over five years, exemplifying the fund's approach of buying distressed assets and waiting for catalysts to unlock value.

Black Bear delivered 13.2% returns in Q1 versus -4.4% for the S&P 500, validating their concentrated long/short value approach. The fund owns undervalued businesses in housing, energy, and regional banks while shorting overvalued private credit, AI wannabes, and legacy data centers. Portfolio positioned like a coiled spring for lumpy outperformance as value recognition accelerates.

Small-cap fund down 10% as AI fears crushed software holdings despite strong underlying earnings growth. Manager sees opportunity in compressed valuations of high-quality businesses, adding to conviction names while maintaining disciplined approach. Energy rally and low-quality stock preference hurt performance, but fundamentals remain solid with potential for attractive long-term returns as sentiment normalizes.

Giverny underperformed in Q1 as Constellation Software fell 44% on AI disruption fears, though the manager believes ERP switching costs protect the business. Exited Ametek on valuation, bought American Express after 25% decline. Maintains focus on quality companies with competitive moats despite market volatility from geopolitical tensions.

Gold's March selloff was liquidity-driven noise masking fundamental strength from geopolitical fracturing and inevitable Fed money printing to bail out collapsing private credit. Western hemisphere gold miners benefit from energy advantages and jurisdictional stability. Unsustainable debt levels across all sectors ensure dollar debasement regardless of geopolitical outcomes, making gold the essential hedge.

Devon navigated March volatility from Middle East conflict by increasing conviction positions in quality businesses like James Hardie and Goodman Group while reducing cyclical exposure. Energy shock benefited Santos and defensive Superloop outperformed. Despite short-term headwinds, firm maintains confidence in medium-term prospects with low cash levels positioned for June quarter improvement.

Distillate Capital leveraged Q1 market volatility to systematically rebalance from expensive to cheap stocks, increasing portfolio free cash flows. Their value strategy focuses on fundamentals over multiples, with historical data showing the cheapest quintile significantly outperforming. Despite market risks, they see opportunities in quality names like Salesforce trading at attractive valuations after recent declines.

Core Leaders Fund declined 6.18% in Q1 2026 as AI disruption fears hammered technology stocks while Iran conflict drove energy surge. Fund benefited from energy exposure but suffered from tech detractors. Managers used volatility to add to quality technology names and initiated nuclear power position via Constellation Energy. Long-term focus on high-quality, competitively advantaged growth companies remains unchanged despite market turbulence.

Value & Income Fund delivered 1.89% in Q1 2026 as energy holdings surged on Middle East conflict while AI fears pressured tech names. Managers trimmed energy war premiums and added infrastructure plays. Fourteen holdings raised dividends 6% on average, exceeding inflation. Strategy focuses on capitalizing on market inefficiencies during sector rotation while maintaining quality dividend growers.

Iran war drives oil from $65 to $102, creating market volatility with S&P down 4% and gold down 13.5%. Manufacturing PMI finally breaks above 50 after years of contraction. Muhlenkamp takes profits, raises cash, and increases overseas exposure anticipating dollar weakness. Key questions remain around war duration, oil prices, and AI boom sustainability.

Kernow's contrarian UK long/short strategy delivered strong defensive performance in March, losing only 0.7% versus 7% market decline. Short book generated 18% returns while oil doubled and geopolitical tensions escalated. Manager believes fear apex passed, now selectively buying. Exited profitable positions in Amedeo Air and Secure Trust Bank, maintaining disciplined approach to capital deployment.

EM equity portfolio leverages companies leading energy transition and AI infrastructure. CATL dominates energy storage systems solving renewable intermittency. Taiwan semiconductor firms benefit from AI server demand. Re-purchased MercadoLibre and WuXi AppTec on reduced political and regulatory risks. Minimal fossil fuel exposure positions for structural energy shift while capturing AI growth themes.

The Iran war has disrupted markets with oil up 40% and stocks down 10%, but political pressures from upcoming midterms will force rapid resolution. With Trump facing 57% disapproval and a thin House majority, ending the conflict is politically essential. Once resolved, energy normalization and strong earnings fundamentals should drive market recovery.

Harding Loevner's global equity strategy underperformed in Q1 2026 amid Iran conflict driving energy surge and AI disruption weighing on tech. The portfolio emphasizes financial resilience over reactive positioning, adding aerospace aftermarket exposure while maintaining focus on quality companies with competitive advantages positioned for infrastructure modernization and energy transition themes.

GoodHaven runs a concentrated 18-position value portfolio targeting quality businesses at discounts to intrinsic value. Core themes include digital advertising secular growth, undervalued financials with strong balance sheets, housing demographic tailwinds, and disciplined energy companies returning cash to shareholders. Portfolio trades at 16.8x forward P/E versus 21.0x for S&P 500.

Miller Value Partners sees value and small-caps entering a multi-year outperformance cycle after extreme underperformance. Their concentrated Deep Value Strategy returned 8.39% in Q1 by investing in deeply discounted turnaround situations trading at fractions of normalized cash flows. With growth stocks facing structural headwinds and valuation gaps at historical extremes, conditions favor patient capital in mispriced cyclicals.

Olesen Value Fund fell 10.9% in Q1 as UK homebuilder positions declined sharply due to Iran war concerns. Manager believes portfolio is most undervalued since 2009 crisis, trading at half intrinsic value. Defense holding Solitron surged 32% on earnings growth and acquisition interest. Fund positioned for potential doubling over next few years through concentrated value investing approach.

East Capital delivered positive alpha in volatile Q1 2026 as Middle East conflict disrupted strong start. Oil spike hurt commodity-importing emerging markets while benefiting exporters like Kazakhstan. Semiconductor strength in Taiwan and South Korea continues on AI demand. Disciplined positioning adjustments and frontier market diversification provided resilience. Outlook hinges on geopolitical resolution.

Castlebay's UK equity fund trades at historically attractive valuations with 6% free cash flow yield, 4% dividend yield, and 12% earnings growth. Quality businesses have been de-rated despite continued earnings growth, creating compelling opportunities. The fund focuses on companies with Process Power competitive advantages while maintaining conviction despite geopolitical uncertainty.

International growth strategy pivoted toward Japan and European infrastructure amid geopolitical volatility. Added five Japanese positions capitalizing on rising rates and governance reforms, plus energy security plays like Engie and Rio Tinto. Reduced software exposure due to AI disruption concerns while adding semiconductor equipment names. Growth valuations have compressed significantly, creating better setup for outperformance ahead.

Fund down 15.1% as AI fears and Iran war drove market panic. Exited Caesars on disappointing buyout, added Mercado Libre at attractive valuation. Manager sees extraordinary buying opportunity similar to early 2025 tariff selloff. Companies reinvesting for growth being punished despite strong fundamentals. Historical indicators suggest bull market emergence ahead.

Markets ended easy street in Q1 2026 as Iranian war drove oil prices up 76%, creating supply disruptions and recession risks. S&P 500 fell 4.6% while Canada outperformed at 3.3% on commodity strength. MacNicol maintains defensive positioning in real assets and energy while avoiding narrow tech leadership, with portfolio insurance against Black Swan events.

Kaydan's Q1 2026 review highlights liquidity as the quarter's defining theme, with investors prioritizing flexibility amid changing economic signals and increased volatility. The firm views these shifts as natural market responses to evolving conditions, emphasizing the importance of maintaining long-term perspective during periods of heightened market movement and uncertainty.

Mawer's quality approach underperformed momentum-driven markets in Q1 2026 as Middle East conflict boosted energy while AI fears pressured technology broadly. Manager positioned for geopolitical risk through energy and defense exposure while distinguishing genuinely disrupted businesses from those with durable competitive moats. Broader diversification and agility emphasized given less reliable global assumptions.

Value stocks are experiencing their strongest relative performance versus Growth since 1991, with dividend-paying equities similarly outperforming. This rotational shift toward cash-flow-sensitive companies has persisted through geopolitical shocks, suggesting a fundamental change in market leadership away from duration-sensitive growth stocks toward companies with immediate cash flow visibility.

London Company Large Cap outperformed significantly in Q1 2026 as quality focus and market broadening benefited the portfolio amid Iran conflict volatility. Semiconductor and industrial names drove performance while AI disruption concerns weighed on tech holdings. Portfolio positioning emphasizes high-quality businesses with competitive advantages to participate in multi-year broadening cycle while managing downside risk.

London Company Income Equity outperformed in volatile Q1 2026 as Iran conflict drove oil surge and inflation fears. Portfolio's quality-focused, dividend-oriented approach proved resilient amid market uncertainty. Energy holdings like Chevron benefited while tech names faced AI displacement concerns. Strategy remains positioned for broadening cycle with emphasis on defensive characteristics and reasonable valuations.

London Company SMID Cap underperformed in Q1 2026 as Iran conflict drove energy surge while portfolio's quality focus lagged commodity-driven rotation. Structural energy underweight hurt performance similar to 2022. Manager added to cybersecurity and payments names on weakness, maintaining conviction in quality businesses with competitive moats despite short-term macro headwinds.

Distillate's small/mid cap value strategy outperformed in Q1 2026 through systematic rebalancing from expensive to cheap stocks, driving superior fundamental growth. The approach targets quality companies with low debt and attractive free cash flow yields while avoiding the unprofitable, leveraged names dominating small cap indices. Fundamentals ultimately drive returns despite valuation volatility.

Distillate Capital demonstrates how market volatility creates rebalancing opportunities, systematically rotating from expensive to cheaper stocks to improve underlying fundamentals. Their value-focused approach now trades at record-cheap levels while maintaining quality standards. Despite macro risks including rich valuations and geopolitical uncertainty, the firm sees attractive opportunities through disciplined stock selection and fundamental-driven investing.

Distillate Capital demonstrates how market volatility creates rebalancing opportunities to improve portfolio fundamentals. Their systematic value approach rotates from expensive to cheaper stocks, increasing underlying free cash flows. Historical analysis confirms fundamentals drive long-term returns. Current positioning shows strategies at historically attractive valuations despite market risks including rich valuations and geopolitical uncertainty.

Greenlight delivered 6.5% returns in Q1 2026 through defensive positioning amid Iran war uncertainty. The fund profited from gold, healthcare turnarounds, and energy shipping while maintaining low exposures given expensive valuations. With little downside priced into markets despite geopolitical risks, Greenlight prioritizes capital preservation over recovery participation, positioning for potential downside scenarios.

Oil shock hits already distressed U.S. economy with weak employment growth, rising financial stress, and fragile balance sheets. Unlike past episodes, U.S. energy self-sufficiency provides some buffer. Fed unlikely to tighten against supply-driven inflation given economic fragility. Treasury yields expected to rise as inflation signals emerge faster than real economic deterioration.

Geopolitical conflict closed the Strait of Hormuz, driving oil from $57 to $101 and stoking inflation fears. The SaaSpocalypse crushed software stocks 30-50% on AI disruption concerns. Despite these shocks, markets showed resilience with stable credit conditions. Energy normalization and software repricing timeline will determine near-term direction.

Hardman Johnston underperformed in Q1 2026 as value stocks led markets, but positioned for AI infrastructure growth and energy transition themes. Strong performance from ASML and TSMC offset weakness in Estée Lauder and European banks. New positions in Albemarle, Broadcom, and oil services companies capitalize on geopolitical shifts and secular electrification trends.