Artemis US Select underperformed in Q1 2026 (-6.1% vs -2.5% S&P 500) due to sector allocation despite positive stock selection. AI data center beneficiaries performed well while energy underweight and regulatory concerns hurt. Portfolio rotation from mega-cap tech to industrials and healthcare continues, positioning for market broadening beyond narrow leadership.

Liberty Park declined 5.38% in Q1 as market crowding from AI-powered flows overwhelmed fundamental analysis. The fund maintains bearish AI infrastructure shorts despite underperformance, arguing hyperscaler capex exceeds profits and creates unsustainable dynamics requiring impossible revenue growth. Energy positions benefited from Iran conflict. Manager expects violent unwinding of current market crowding.

Concentrated UK small cap value fund targeting 15% IRR through turnaround investments. Top performing fund over 3-5 years with 105% five-year returns. Focus on distressed situations under £250m market cap where active engagement drives value creation. Key positions in defense technology and broadcast equipment turnarounds. High conviction portfolio with 62% in top ten holdings.

Markel delivered strong insurance underwriting results with a 93% combined ratio and 31% growth in insurance operating income, but investment portfolio volatility created significant headwinds. The company maintained disciplined capital allocation with $134 million in share repurchases while demonstrating operational resilience in its core specialty insurance franchise.

Diamond Hill's Small Cap strategy outperformed in Q1 2026 by capitalizing on geopolitical tensions through energy and defense exposure while avoiding AI-disrupted software. The manager is positioning for continued volatility by focusing on resilient businesses tied to national security infrastructure rebuild and stable basic-needs companies offering compelling returns with narrower outcome ranges.

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.

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.

Atherean initiated a position in Constellation Software, capitalizing on AI disruption fears that drove down the elite software acquirer's valuation. The manager believes concerns are overstated for Constellation's specialized vertical market software businesses with high switching costs and domain expertise. The firm continues hunting for quality companies made temporarily inexpensive by market overreactions.

Elliott targets Daikin as a deeply undervalued global HVAC leader trading at historic discounts despite strong competitive moats. The activist firm identifies 500bp margin improvement potential through operational efficiency plus significant capital return opportunities via buybacks. With secular tailwinds from electrification and data centers, Elliott projects 70%+ EPS upside through better execution and capital allocation.

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.

Concentrated fund targeting 15% annual returns through owner-manager led compounders with sustainable advantages. Top holdings in payments disruption (Block, Wise, Nubank) and undervalued travel (Jet2 at 5x PE). Portfolio positioned for AI transformation with businesses having lowest unit costs and customer obsession. Strong historical performance despite -9.5% YTD.

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.

Wasatch Micro Cap Fund outperformed despite Q1 volatility by focusing on AI-resistant companies with competitive moats. Education stocks benefited from skilled trades demand while software holdings faced disruption fears. The fund consolidated into highest conviction names and added to quality companies on weakness, positioning for long-term outperformance through disciplined fundamental analysis.

Target-date fund outperformed benchmark through tactical overweights in commodities and international equities. Strong semiconductor performance offset software detractors. Management favors non-U.S. assets over domestic holdings based on attractive valuations and potential dollar weakness. Maintains diversified approach to navigate persistent inflation and macro uncertainties while implementing updated strategic allocations.

Stewart Investors trimmed AI semiconductor winners like Samsung and TSMC due to expensive valuations while building positions in Tencent, Sony, and H World. Despite Middle East geopolitical tensions weighing on Asian markets, the manager remains optimistic on the region's quality companies, attractive valuations versus developed markets, and long-term digital transformation trends.

NZS Capital's growth strategy fell 8.91% in Q1 as AI disruption fears hammered software while semiconductors outperformed on infrastructure demand. The manager is aggressively buying the software selloff, focusing on vertical market players with defensible moats. Healthcare additions capitalize on normalized fundamentals and GLP-1 tailwinds. Current growth valuations offer compelling multi-year opportunities.

Oil shock from Iran War hits already distressed U.S. economy with rising credit stress and structural imbalances from pandemic policies. Historical parallels suggest supply-side recession ahead where production costs drive both inflation and contraction. Fed likely to hold rates steady. Fund reduced duration after quarter-end as long-term Treasury yields expected to rise despite economic weakness.

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.

Fidelity's 2055 target-date fund declined 0.48% in Q1 but outperformed through active allocation favoring commodities and non-U.S. equities. Technology holdings drove outperformance while software and industrial positions detracted. The fund is implementing updated allocations over 6-12 months, maintaining commodity overweights amid persistent inflation concerns and expanding business cycles.

Osterweis small cap growth fund underperformed slightly in Q1 amid Iran war volatility and AI disruption fears. Strong performance from AI infrastructure plays like MACOM and Modine Manufacturing offset software weakness. Managers reduced software exposure while maintaining focus on innovative companies with sound fundamentals, expecting shift from speculation to fundamentals in 2026.

Australian activist fund delivered -6.1% in March amid geopolitical headwinds. QPM secured major development permits and $72M funding for power station construction. MFG merger with Barrenjoey disappointed on valuation terms despite strategic merit. Fund maintains full deployment across 23 Australian positions, targeting undervalued companies where activist engagement drives governance and capital management improvements.

Global Growth underperformed in Q1 as AI disruption fears hit software while geopolitical tensions drove energy higher. The fund added AI infrastructure exposure through semiconductors and power solutions while reducing software weights. Despite near-term headwinds, management sees attractive five-year setup with 26% expected earnings growth and historically low valuations.

AI infrastructure drove strong gains but e-commerce headwinds and Iran conflict risks caused Q1 underperformance. Portfolio expanded AI exposure through new semiconductor equipment and power solution positions while trimming India and Korea. Valuation at historic lows with 29% expected earnings growth creates attractive five-year setup despite near-term geopolitical volatility.

Wasatch Global Select underperformed as markets rotated from AI beneficiaries to asset-heavy companies, hurting holdings perceived vulnerable to disruption. Managers believe the market has been undiscerning about AI risks and expect their companies with proprietary data and network effects to ultimately benefit. They plan balanced positioning amid potential volatility ahead.

Frontier emerging markets strategy underperformed as Middle East tensions boosted commodities, benefiting sectors where the fund has zero exposure. AI trends drove outperformance in semiconductor inspection tools and grid infrastructure while pressuring e-commerce and fintech through increased competition. Manager maintains disciplined approach, expecting quality growth companies to outperform cyclical plays in the next cycle phase.

Technology Innovators declined 15% in Q1 2026 as AI disruption fears pressured growth stocks. The fund shifted toward AI infrastructure, adding memory providers Samsung and SK hynix while reducing software exposure. Despite near-term headwinds from agentic AI emergence, management sees compressed valuations creating attractive five-year setup as growth-adjusted premium reaches historic lows.

International Growth declined 14.8% in Q1 2026 as AI disruption concerns weighed on software holdings while semiconductor names like TSMC and ASML benefited from accelerating AI infrastructure demand. The portfolio's Japan overweight and China avoidance provided relative tailwinds. Valuation compression to 22x forward earnings represents the narrowest premium since inception, setting up attractive five-year prospects.

Select Growth underperformed amid AI-driven market rotation but views sell-off as indiscriminate. Fund evolved toward AI infrastructure beneficiaries, initiating memory-focused positions in Seagate and Lam Research while reducing cloud exposure. Maintains conviction in internet businesses with durable competitive advantages. Compressed valuations across growth businesses create attractive five-year setup with valuation premium near 2009 lows.

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.

Baron Discovery Fund underperformed due to AI disruption fears hitting software holdings despite strong earnings. Managers maintain conviction in software companies with competitive moats beyond code, adding to positions at attractive valuations. They expect catalysts including M&A activity and cybersecurity needs to drive outperformance as markets recognize value dispersion in software.

Edgewood's Q1 2026 underperformance of -13.3% was driven by AI-related valuation compression in growth stocks, not fundamental deterioration. Portfolio companies delivered 32% average earnings growth while the market priced theoretical disruption concerns. The firm maintains conviction in high-quality businesses positioned to benefit from AI adoption and sees current dislocation as creating meaningful appreciation opportunities.

European value fund weathered Q1 geopolitical volatility while maintaining discipline in quality small-cap selection. Portfolio companies showed stability despite economic headwinds, with upside potential reaching record 126%. Recent market weakness enabled position strengthening at deeper discounts. Added three high-quality new investments with predictable cash flows. Positioned for potential sector recovery in 2026.

Small cap growth fund outperformed broader markets in volatile Q126, benefiting from infrastructure spending, defense investments, and AI semiconductor positioning. Strong earnings growth of 45% expected for small caps driven by productivity improvements and attractive valuations. Manager remains constructive on economic environment supported by fiscal stimulus and infrastructure legislation despite geopolitical headwinds.

The 1290 SmartBeta Equity Fund's quantitative approach delivered relative outperformance during Q1 2026's volatile period marked by Iran war and energy crisis. Defensive sector positioning through underweights in technology and overweights in staples helped navigate market turbulence, though underweight Energy positioning hurt as oil prices spiked from Strait of Hormuz closure.

Kennedy Capital's small cap growth strategy underperformed in Q1 2026 due to Iran conflict volatility but recovered post-cease-fire. Strong performance in AI infrastructure beneficiaries including data center contractors and optical components manufacturers. Consumer weakness impacted financials and discretionary holdings. Firm positioned for AI deployment opportunities and onshore manufacturing trends.

Brennan navigated Iran war volatility while managing portfolio-specific events. PTSB's disappointing sale to BAWAG frustrated despite success. Selling WBD to Paramount for higher conviction names. CAB Payments turnaround gaining traction amid takeover battle. Increased CODI position following activist involvement. DCC's stable propane business remains attractive. Cautious deployment given elevated valuations and narrow opportunities.

AI coding advances triggered software selloff but manager sees important distinctions between vulnerable providers and specialized enterprise software with regulatory complexity and switching costs. Used IT rout to add quality names while exiting AI-vulnerable services. Iran war drove oil surge. Portfolio underperformed on software exposure but positioned for eventual market recognition of quality differences.

Kennedy Capital's mid-cap value strategy underperformed in Q1 due to homebuilding exposure amid rising rates and conflict-driven sector rotation away from Industrials toward Utilities and data center technology stocks. Manager maintains homebuilding positions on attractive valuations, added refining exposure, and avoids cyclical tech names while making tactical adjustments to navigate geopolitical volatility.

Bison outperformed in Q1 2026 as the Strait of Hormuz closure created the largest oil supply disruption in history. The manager sees substantial upside in undervalued oilfield service companies like Ensign Energy Services, which benefit with a lag from higher oil prices through increased drilling activity, improved utilization, and stronger day rates.

Grandeur Peak identifies AI Infrastructure and Obsolescence risks as key portfolio threats, repositioning away from vulnerable software businesses toward AI-neutral companies and diversified infrastructure beneficiaries. Despite quality and growth underperformance headwinds, they maintain process conviction while concentrating portfolios for deeper conviction. Expect earnings growth to surprise upward as conservative guidance proves excessive.

Grandeur Peak repositions portfolios around AI risks, reducing obsolescence exposure in software while maintaining selective infrastructure exposure through diversified beneficiaries. Despite quality underperformance headwinds, they concentrate holdings and increase conviction in small-cap opportunities outside AI hype. Physical infrastructure layer preferred over software, expecting earnings growth to surprise markets as conditions improve.

Harding Loevner's global small-cap strategy declined 0.64% in Q1 2026, underperforming its benchmark by 181 basis points. The concentrated portfolio maintains overweights in Industrials and Healthcare while being significantly underweight US exposure. Industrial names like Senior and TechnipFMC contributed positively, while technology holdings detracted from performance.

Defensive cash-heavy positioning proved prescient as markets declined 4.3% while software sector collapsed 22.5%. Portfolio benefited from AI infrastructure exposure via Corning's $6 billion Meta deal and Sphere's expansion plans. Added to distressed Perrigo and new position Baxter. Manager views 2026 as AI implementation year while maintaining discipline on valuations and deployment timing.

Polen 5Perspectives Small Growth outperformed significantly in volatile Q1 2026, driven by power infrastructure beneficiaries of AI data center buildout including Powell Industries and Argan. Manager maintains conviction in Electrification and Aerospace themes while adapting to AI disruption by adding Agentic AI exposure and reducing genomics positions.

Amati's innovation fund outperformed during Q1 2026 volatility by focusing beyond Magnificent Seven AI plays into specialized areas like photonics and memory semiconductors. Samsung, Lumentum, and MKS Instruments led gains from AI infrastructure demand. Added positions in Physical AI beneficiaries and undervalued software. Geopolitical risks persist but innovation themes remain compelling.