The Fund returned 6.7% in Q2 as small and mid-cap UK stocks reversed multi-year underperformance. Holdings like Intertek, Renishaw, and Auction Technology delivered strong gains on positive trading updates and takeover interest. Energy holdings declined on the Iran ceasefire. The Fund now trades at a historic valuation discount to the UK market despite superior Quality characteristics, presenting a compelling opportunity for patient investors.

ROCKLINC's portfolio targets six macro trends through concentrated exposure to AI infrastructure, gold royalties (31.5% allocation), nearshoring logistics, uranium, and specialty insurance. Q2's -1.5% return reflected a 14% gold correction, but the manager sees exceptional upside ahead given record global debt and currency debasement pressures. Insurers trade at historic lows in a hardening market. Cash at 17.3% provides dry powder for dislocations.

Sequoia Fund returned 11.67% in Q2 2026, trailing the S&P 500, with year-to-date performance at negative 0.64%. The concentrated portfolio is led by Rolls-Royce at 13% and Alphabet at 9.2%. Managers rotated capital by adding to Bio-Techne, SAP, and ICON Plc while trimming or exiting five positions. The fund is converting to ETF structure in October 2026.

Laughing Water Capital delivered 39.8% net returns in Q2 2026 as three portfolio companies were acquired and the largest position doubled. The concentrated portfolio now holds significant cash following exits, with new position AnaptysBio offering 50-80% upside as GSK litigation approaches trial in July. Manager continues hunting mispriced special situations in healthcare and other forgotten corners, focusing on catalyst-driven opportunities with limited macro exposure.

Thornburg Strategic Income outperformed in Q2 2026 by maintaining shorter duration as new Fed Chair Warsh pivoted hawkish and oil spiked to $118 on Iran conflict before retreating. The portfolio's defensive positioning and BBB/BB overweights captured spread tightening while avoiding rate pain. Managers see yields staying elevated on sticky 3.4% inflation and tight credit spreads offering little cushion for disappointment.

Thornburg International Equity underperformed in Q2 as markets recovered from the Iran energy shock, but maintains its 28-year track record of 2.7% annual alpha through disciplined stock selection. Semiconductor and European financial holdings drove gains while Chinese positions lagged on weak domestic demand. The concentrated portfolio of 46 quality businesses trading at attractive valuations positions the fund to navigate slowing global growth and deliver through-cycle outperformance.

Thornburg Investment Income Builder delivered 16.15% YTD returns through Q2 2026, driven by strong performance from semiconductor holdings and European financials. The fund maintains a 3.5% dividend yield, more than double the MSCI Index, while trading at a 13.0x P/E versus 19.5x for the index. Despite elevated market valuations and macro uncertainty, the managers believe the portfolio's dividend-paying firms with resilient businesses offer significant intrinsic value.

The fund outperformed in Q2 2026 through overweight credit positions as spreads tightened on Middle East optimism. New Fed Chair Warsh's hawkish pivot and reduced transparency prompted neutral duration positioning ahead of expected volatility. Managers rotated from agency MBS and Treasuries into investment-grade corporates and securitized assets, seeing compelling risk-adjusted returns in nonagency residential MBS. Elevated yields and stable credit fundamentals support a constructive bond market outlook.

Chilton Capital sees the AI-driven market rally as fundamentally sound, backed by spectacular earnings growth rather than bubble-like multiple expansion. They actively exploited volatility, increasing office REIT exposure during panic selling and maintaining data center overweights. Emerging markets surged 24% YTD on semiconductor strength. Despite inflation pressures eliminating rate cut prospects, broad-based earnings revisions support further gains into low double-digits.

The fund underperformed in Q2 but used market dislocations to initiate six new positions at meaningful discounts to intrinsic value. Semiconductor equipment strength validated the recovery thesis, while temporary headwinds in pulp and paper and AI-driven sector deratings created entry points. The managers remain focused on European and Japanese small caps with durable competitive advantages, long-term cash-flow potential, and attractive valuations.

Hardman Johnston's global equity strategy returned 20.6% net in Q2 2026, driven by semiconductor holdings Infineon and STMicroelectronics benefiting from improving industry conditions and AI data center demand. The manager remains constructive on long-term secular themes including AI infrastructure, energy transition, and European defense spending, while acknowledging cyclical risks in semiconductors and navigating geopolitical uncertainty and higher-for-longer interest rates under hawkish Fed leadership.

Magellan underperformed in Q2 2026 as semiconductor stocks surged 88% in bubble-like conditions the manager deliberately avoided to protect capital. The fund added to quality franchises outside AI themes now trading at post-Covid attractive valuations. Top contributors were TSMC on AI chip demand, UnitedHealth on margin recovery, and Adidas on brand momentum. The manager views current market narrowness as creating compelling long-term opportunities in neglected quality businesses.

ClearBridge Small Cap Growth posted strong 21% gross returns but underperformed the benchmark's 25.6% gain as AI enthusiasm drove exceptional semiconductor performance. The Strategy benefited from AI-exposed holdings in semiconductors and data center infrastructure but faced headwinds from software disruption concerns and idiosyncratic health care weakness. Managers added 13 positions during a large Russell rebalance, positioning for the next phase of AI adoption beyond infrastructure.

Magellan Global Opportunities returned 4.5% in Q2 2026, underperforming the 12.5% benchmark as AI speculation reached bubble-like extremes with semiconductors surging 88%. The manager refuses to chase momentum-driven leadership, instead selectively adding to neglected quality franchises at the most attractive valuations since post-Covid. Portfolio holds 20-40 high-quality global companies with durable competitive advantages, maintaining discipline to avoid permanent capital loss.

Halvio Capital pursues deep value in small-cap stocks with hard asset backing, up 19.80% year-to-date while explicitly avoiding AI bubble. Portfolio includes companies trading below tangible book or at single-digit EBIT multiples. Goldmoney position offers UK real estate worth more than enterprise value with profitable precious metals business thrown in free. Manager prioritizes downside protection as market valuations reach 32x earnings with speculative excess emerging.

ClearBridge International Growth ADR Strategy capitalized on AI infrastructure supply chain bottlenecks in Q2 2026, with semiconductor equipment makers and optical networking suppliers driving outperformance. The portfolio aggressively repositioned toward Japan, now the highest-conviction opportunity given governance reforms and AI exposure. Fifteen new positions were initiated focused on areas where scarcity is creating pricing power across memory, analog chips, data storage, and data center connectivity.

Wedgewood underperformed in Q2 as momentum stocks dominated, but the manager is doubling down on hyperscalers, viewing their massive AI capex as rational given 30%+ returns and investment gains hedging component inflation. Taiwan Semiconductor and Alphabet drove performance. The manager warns semiconductors are at cyclical peaks despite historic growth. New position Hermès offers rare luxury pricing power from artisanal scarcity. Quality stocks at 1999-level discounts present opportunity.

ClearBridge Mid Cap Growth outperformed in Q2 2026 by identifying durable value in AI infrastructure bottlenecks like memory and data connectivity while capturing industrial recovery in equipment rental and modular space. The Strategy added AI beneficiaries Lumentum and Sterling Infrastructure alongside nuclear and biotech opportunities, balancing exposure across the generational AI investment cycle and emerging cyclical recovery rather than chasing benchmark shifts.

ClearBridge Large Cap Value underperformed in Q2 2026 by avoiding commodity-sensitive AI supply-chain stocks the managers believe will face challenges when new supply arrives in 2027/2028. They are using the selloff in high-quality defensive stocks to upgrade the portfolio, adding Eaton, Apple, Microsoft, and Amazon while maintaining focus on durable franchises with strong balance sheets and the ability to compound through cycles.

Frank Value Fund pursues catalyst-unlocking value in mid-caps trading at 10x earnings, deliberately avoiding the AI Big 10 concentration that mirrors 2000 bubble dynamics. The fund retained large consumer staples positions and added healthcare and defense contractors where depressed valuations enable 10%+ annual capital returns through buybacks. The 66% tech-staples performance gap creates compelling opportunity as management teams accelerate earnings growth, offering simpler bets than complex AI infrastructure unknowns.

Bristlemoon returned 1.9% in Q2 2026 after a difficult year that prompted implementation of a compounding/conviction framework to prevent over-sizing positions lacking catalysts. The fund concentrates capital in stocks with positively inflecting narratives, as demonstrated by scaling Timee from 5% to 8% following growth reacceleration. Highest conviction remains ASML, positioned to benefit from a multi-year semiconductor capex supercycle driven by unprecedented AI infrastructure buildout across TSMC, Intel, and memory manufacturers.

M&G navigates unprecedented market concentration by maintaining disciplined diversification across uncorrelated securities with clear value gaps. While participating selectively in AI through established business models, the firm increasingly targets longer-cycle themes like electrification and overlooked quality names trading at attractive valuations. Multi Asset portfolios favor government bonds over credit with tactical duration management. Opportunities emerging in Japan corporate reform, EM valuations, and broadening leadership as extreme concentration eventually normalizes.

Markets rallied in Q2 2026 as small caps surged 22% and leadership broadened beyond mega-cap tech. The U.S.-Iran conflict disrupted energy markets before stabilizing, while AI focus shifted from infrastructure spending to monetization concerns as hyperscaler cash flows weakened. Consumer resilience persisted despite inflation outpacing wages, supported by tax refunds. New Fed Chair Warsh launched policy reviews that may reshape inflation measurement and communications.

GDS Investments is aggressively repositioning into high-quality businesses trading at cyclically depressed valuations while the market remains fixated on AI. The AI bubble is leaking as investors begin discriminating between winners and losers. The manager has upgraded the portfolio by swapping into equally strong or stronger businesses at materially better prices, particularly in housing, positioning for a shift toward valuation discipline.

MacNicol & Associates navigates a market where AI-driven gains mask persistent inflation and geopolitical risks. The firm maintains conviction in gold's long-term case despite sharp Q2 correction, participates selectively in AI infrastructure while avoiding valuation extremes, and emphasizes portfolio construction with real diversification and downside protection rather than traditional stock-bond allocations that may fail when inflation pressures both simultaneously.

Douglass Winthrop sees AI speculation creating a dotcom-style bubble with extreme valuations disconnected from fundamentals. Rather than chasing speculative infrastructure plays, they own proven cash generators—Alphabet, Microsoft, Amazon—gaining AI exposure as an accelerating tailwind to existing franchises. Quality businesses like S&P Global have become 27% cheaper while markets inflated 20%, creating compelling opportunities. Portfolio discipline protects capital when enthusiasm outruns reality.

FAM Small Cap underperformed in Q2 by avoiding AI data center plays the manager views as lacking moats. The portfolio trades at severely discounted valuations with double-digit earnings growth projected. Top performers included Frontdoor and Landstar System on recovering end markets. The fund initiated Ryan Specialty during weakness and expects elevated activity as volatility creates selective opportunities in high-quality small caps.

Capicraft lost 9% in Q2 as AI absorbed all capital while energy, uranium, and gold exposures suffered. Manager increased energy to 17% post-Iranian war, citing 1.5 billion barrel supply loss and tight physical markets. Avoids AI due to circular demand and uncertain economics. Maintains 50%+ in commodities and real assets despite underperformance, viewing structural supply deficits and geopolitical risks as mispriced.

GMO's market-neutral Equity Dislocation Strategy returned 9.05% net in H1 2026 by exploiting extreme Value-Growth dislocations through superior stock selection and active rotation. Korean growth names delivered 4.0% returns while banks and software shorts contributed meaningfully. The strategy profited from AI disruption by targeting unsustainable valuations rather than forecasting business model vulnerability. Strong performance during Q1's Value rally and resilience during Q2's Growth surge demonstrate the strategy's diversification benefits.

The fund delivered 11.29% in Q2 2026, outperforming on strength in AI-related infrastructure, semiconductors, and EV charging. After a lost decade, UK small caps trade below long-term averages with stabilizing earnings. The managers see catalysts in political stability, deregulation, and M&A interest. Portfolio positioning emphasizes cash-generative growth businesses capable of withstanding uncertainty while capturing recovery upside.

Westfield trimmed AI exposure after semiconductors hit technical extremes, rotating into Healthcare, Industrials, and Financials. Healthcare offers compelling value with earnings inflection and $1.4 trillion pharma M&A firepower. Small caps outperformed Mag 7 by 24% year-to-date and could sustain multi-year outperformance. Stock correlations at eight-year lows favor active management. Momentum is extended and correcting—rotate away from mega-cap tech into quality laggards with improving fundamentals.

The fund delivered 16.17% in Q2 2026, outperforming on concentrated AI infrastructure exposure as hyperscaler capex surged past 60% growth. Seagate, Micron, and TSMC drove returns while perceived AI disruption victims lagged. Managers trimmed AI winners after exceptional performance and rotated into undervalued quality names with durable moats. The portfolio balances genuine AI beneficiaries with resilient businesses, maintaining focus on sustainability, energy security, and companies positioned for multi-year secular trends.

Focus Wealth Management warns markets show late-stage bubble characteristics with half the S&P 500 at 10x price-to-sales requiring impossible returns. While AI is genuinely revolutionary, hyperscaler economics are unattractive and three-quarters of U.S. growth depends on this spending. The manager avoids the mania, buying quality businesses left behind like WSP Global and Abbott Laboratories, maintaining discipline and dry powder for inevitable volatility.

FAM Value Fund returned 9.35% in Q2 2026, lagging the Russell Midcap's 13.83% as AI infrastructure investments dominated. Semiconductor holdings Amphenol and Analog Devices led performance. The manager added three new positions—Ryan Specialty, Thermo Fisher, and Tyler Technologies—viewing AI disruption fears as creating opportunities in high-quality businesses. Defensive holdings lagged in the risk-on environment. Portfolio activity expected to remain elevated.

The fund returned 19% in Q2 2026, driven by AI-related semiconductor holdings Murata and Kokusai Electric reaching record highs as demand broadened beyond chipmakers. The manager added Tokyo Electron on semiconductor infrastructure strength while exiting Mitsui Fudosan on capital allocation concerns. With Japanese inflation entrenching, corporate governance improving, and valuations reasonable, the manager maintains a constructive long-term view despite near-term geopolitical volatility.

FAM Dividend Focus Fund returned 6.89% in Q2 2026, underperforming the Russell Midcap's 13.83% as AI infrastructure stocks dominated. Portfolio earnings are projected to grow 19% in 2026 while dividends rose 10.5%. Compelling mid-cap valuations drove twelve portfolio companies to announce acquisitions. The manager initiated five new positions and expects elevated portfolio activity as high volatility creates stock-picking opportunities among quality businesses with durable competitive advantages.

Forager Australian Shares fell 10.8% as the AI bubble inflated and the fund avoided overvalued tech. The manager sees this as a 2000-style sector bubble creating opportunities in ignored value stocks. Major mistakes in EML Payments offset wins from Cuscal and takeovers. The portfolio is concentrated in dumped software and cash-generative businesses, positioned for reversal when the bubble pops.

Forager deliberately sat out the AI bubble, returning negative 5.7% while markets soared on euphoria the manager views as unsustainable. The fund exited AI beneficiaries like Comfort Systems as valuations became too steep and cut the Fiserv mistake after management instability confirmed deeper problems. The portfolio is now concentrated in mispriced opportunities including Japanese software and European banks, positioned to profit when AI mania ends and value reasserts itself.

Hardman Johnston's International Equity portfolio returned 18.8% net in Q2 2026, driven by semiconductor holdings benefiting from normalized inventories and AI data center demand. The manager maintains conviction in AI adoption, European defense spending, and energy transition themes while trimming semiconductor positions to lock in profits. Despite geopolitical uncertainty and hawkish Fed policy, the portfolio remains focused on high-quality companies positioned for long-term secular growth.

Penn Davis McFarland views current AI valuations as excessive and expects a temporary setback within two years despite confidence in long-term adoption. Rather than chasing speculative plays like SpaceX or overvalued memory chip suppliers, the firm purchased Accenture at multi-year lows, believing ultimate value lies in helping enterprises productively implement AI over the long term, not in temporary infrastructure bottlenecks.

Mawer captured strong AI infrastructure gains through selective semiconductor and data center exposure but actively trimmed winners to maintain valuation discipline and diversification. Energy and gold holdings detracted on geopolitical shifts. Manager views hot IPO market and persistent inflation as emerging risks. Portfolio balances AI participation with quality businesses offering durable advantages across sectors and geographies, designed for full-cycle performance rather than chasing concentrated leadership.

AI infrastructure spending is driving sustainable market gains with semiconductor and hardware companies leading on strong fundamentals, though valuations have expanded significantly. Trillion-dollar hyperscaler investments appear justified by expected productivity gains of $625 billion annually. Software faces near-term disruption as AI lowers barriers to entry, but smart incumbents will adapt. Retail speculation is elevated but not yet at bubble-bursting levels based on historical patterns.

Night Watch delivered 12.80% in Q2 by exploiting market bifurcation, buying quality compounders sold off for AI stocks while taking profits in cyclical memory positions. Marex surged 37% on volatility and M&A execution. The fund added Stryker, Adyen, and Booking.com at depressed valuations while Watches of Switzerland accelerates post-tariff removal. Concentrated positions in overlooked aerospace, capital markets, and payments drive 20% annual compounding with low volatility.

FMI sees an AI bubble with semiconductor valuations over four standard deviations above historical norms while quality businesses trade at dot-com-era discounts. They are avoiding AI infrastructure stocks and buying traditional businesses like FTI Consulting, Capital One, and Fluidra that will benefit from AI on the cost side. The 3- to 5-year setup is the strongest in years as the valuation gap creates compelling opportunities.

FMI is avoiding the AI bubble and buying overlooked quality businesses at compelling valuations. Semiconductor and AI infrastructure stocks have reached dot-com-level excess with unsustainable ROI dynamics, while traditional businesses with durable advantages trade at historic discounts. Portfolio positioned to benefit from AI productivity gains on the cost side, creating asymmetric upside regardless of whether AI delivers on its promises.

Manager aggressively bought application software in H1 2026 at 2-3x sales, down from 8-12x, seeing 30-40%+ IRRs as market indiscriminately sold on AI fears. Portfolio focuses on essential utility software like Workiva (SEC reporting near-monopoly at 2.6x sales, 31% IRR) positioned to benefit from AI rather than be disrupted. Conducted 105 expert calls to validate thesis that nuance between winners and losers is being missed.

Desert Lion Capital delivered +8.3% net year-to-date through June 2026, outperforming the JSE All Share Index by 12.1%. Manager Van Niekerk maintains high conviction in SA small- and mid-cap equities, where capital outflows and market inefficiency have created a compelling valuation opportunity with double-digit growth companies trading at single-digit PEs. The fund holds 8-15 concentrated positions with top 6 representing 86% of assets.