International Alpha is capitalizing on the AI revolution through diversified semiconductor exposure while adding uncorrelated growth drivers at attractive valuations. Samsung and TSMC profits surged on memory and chip demand, prompting profit-taking to fund positions in overlooked AI enablers like Wärtsilä and undervalued software names. Despite China headwinds and energy volatility, broad operational strength across 40 percent of holdings and 15-year low valuations support conviction in outperformance ahead.

The Fidelity Freedom 2045 Fund delivered 14.51% in Q2 2026, outperforming its benchmark through active positioning favoring non-U.S. equities and strong security selection in semiconductors and AI-related technology. The team increased emerging markets exposure on accelerating earnings revisions while reducing commodities as inflation normalized. The fund maintains an equity overweight with preference for international assets on valuation and dollar weakness potential.

Cambiar International Equity returned 5.17% in 2Q 2026, lagging the MSCI EAFE's 10.82% gain driven by AI and semiconductor euphoria. The fund's underweight to Technology hurt relative performance despite positive selection elsewhere. The team increased Industrials exposure to 25% of capital, adding CNI and MTU Aero to capture defense, onshoring, and infrastructure tailwinds. International valuations at 14.6x forward P/E appear reasonable versus extreme U.S. multiples.

Weitz underperformed in Q2 2026 as their valuation discipline kept them from chasing expensive AI momentum. They selectively own Texas Instruments and Alphabet within AI while trimming winners and raising cash modestly. New positions in Netflix (ad-tier growth strategy) and Mettler-Toledo (price dislocation) demonstrate opportunistic deployment. The managers remain constructive on quality businesses trading at reasonable valuations despite near-term market preference for growth at any price.

Artisan Global Discovery returned 17.4% in Q2 2026, outperforming on strong semiconductor and biotech stock selection. The portfolio participated in AI infrastructure appreciation while maintaining discipline, with multiple semiconductor positions up over 100%. Health care holdings rose 19% on novel drug development momentum. The team initiated early-stage profit cycle positions in Entegris, Cellebrite and C.H. Robinson while exiting ROBLOX and MongoDB to redeploy into higher conviction opportunities with more attractive risk-reward.

Cedar Creek delivered 12.6% in the first half of 2026, maintaining its 20-year track record of 15% annualized returns. The microcap-focused fund increased expert market exposure to 32.5%, led by natural gas producer Exco Resources and asset-rich Harbor Diversified. Community banks now represent 14% of assets at 6-7 times earnings. The portfolio trades at 7.3 times forward earnings with significant illiquidity discounts creating opportunity.

Fawkes delivered 2.4% in June on AI supply chain strength but reduced exposure ahead of a 40-65% sector correction, preserving capital. The manager established oil positions on tightening inventories and Iran conflict escalation risk. With only six to eight weeks of global oil inventory remaining and incompatible US-Iran positions on Strait of Hormuz control, the manager sees material upside in oil and plans to rebuild AI positions at lower valuations.

Alluvium's concentrated value fund returned -1.4% in Q2 2026 amid speculative semiconductor excess the managers explicitly reject. The fund initiated Copart after a 50% decline and added to healthcare and cable broadband positions trading below valuations. Strong performance from Alphabet, Robert Half, and H&R Block was offset by cable devastation despite 20%+ earnings yields. Cash reduced to 10% on bottom-up opportunities across 21 high-quality holdings.

The Fund returned 3.01% net in Q2 2026, outperforming its benchmark by 56 basis points. The high yield market benefited from Iran conflict de-escalation and brisk primary issuance. The manager is actively recycling gains into higher-quality credits as valuations have become stretched, while maintaining the view that high yield remains attractive versus alternatives through disciplined credit selection in an environment of supportive fundamentals but persistent inflation risks.

TCW's concentrated large cap growth fund underperformed in Q2 2026 despite strong absolute returns, as AI infrastructure spending accelerated toward $1 trillion annually. The managers added semiconductor exposure through KLA and Micron while cybersecurity holdings rallied on AI-driven demand. Health care medtech positions detracted. The fund maintains high conviction in the multi-year AI buildout with two-thirds offensive positioning, viewing current valuation as a coiled spring given rising earnings estimates.

Osterweis Opportunity Fund returned 35% in Q2 2026, significantly outperforming on AI-driven semiconductor and infrastructure gains. SiTime and Semtech led with triple-digit and strong returns respectively as data center CapEx surged. Managers now rotating profits from crowded AI winners into undervalued Software, Health Care, and Consumer names with sustainable growth, anticipating consolidation as infrastructure spending moderates.

The fund returned 7.03% in Q2 2026 but lagged the 15.49% benchmark as AI-related momentum drove extreme factor performance favoring growth over value. The managers maintain 30 concentrated positions in quality companies trading at discounts to intrinsic value, with an estimated price-to-value in the upper-70s. Despite near-term underperformance, they believe their disciplined value approach will deliver adequate multi-year returns as extremes normalize.

Lazard Enhanced Opportunities returned 2.82% in Q2 2026, underperforming as equity hedges detracted from strong market gains. AI infrastructure convertibles from Nebius and Akamai drove positive performance through volatility-driven basis expansion. Record convertible issuance of $83 billion nearly doubled prior year levels. Rising rates under hawkish Fed Chair Warsh partially offset gains. The team expects earnings volatility to create gamma trading opportunities.

The fund gained 26.31% in Q2 2026, outperforming its benchmark on strong AI-related holdings including JFrog and Cohu, plus defense and semiconductor exposure through Materion. The manager initiated positions in school bus manufacturer Blue Bird and rare disease specialist Travere Therapeutics. Despite Middle East tensions and stagflation concerns, the manager remains optimistic on small caps benefiting from AI adoption, infrastructure spending, and supply chain reshoring.

GreensKeeper's concentrated value portfolio surged 10.9% in Q2 as markets rotated back to valuations. ICON exemplified the strategy: aggressively buying a quality business at a 15% free cash flow yield during peak pessimism, then capturing a 90% gain as uncertainty receded. Richemont's pricing discipline, Alphabet's AI-enhanced search growth, and Elevance's margin recovery demonstrate the portfolio's focus on compounding high-quality franchises trading at attractive valuations.

Square Peg's portfolio compounded 30% over 12 months with realizations exceeding $1 billion, driven by companies successfully integrating AI to strengthen moats. The firm is aggressively deploying into AI-native startups attacking labor markets far larger than traditional software budgets, viewing this as an extraordinary value creation period. Their APAC-wide strategy provides critical pattern-matching advantages as Singapore emerges as a global tech hub producing world-class companies.

Core Leaders returned 12.24% in Q2 but lagged the S&P 500's 15.20% due to underweight semiconductor exposure during an 88% sector rally. The managers view unprecedented investor crowding and 11x sales valuations as unsustainable despite strong AI infrastructure fundamentals. They trimmed winners like Marvell and UnitedHealth while adding defensive quality positions including Constellation Energy and Berkshire Hathaway. The team maintains discipline on intrinsic value investing, expecting eventual market broadening to favor their quality-focused approach.

Stewart Investors' Asia strategies surged in Q2 2026 on semiconductor strength, with Samsung, MediaTek and TSMC driving returns amid AI-fueled memory demand. The manager trimmed these expensive positions while adding Indian banks and Vietnamese companies at attractive valuations. China faces domestic weakness and capital control concerns. Despite Middle East volatility, the manager sees compelling long-term opportunities in quality Asian businesses trading at discounts to developed markets.

The Touchstone Core Municipal Bond Fund slightly underperformed its benchmark in Q2 2026, returning 2.37% as the municipal bond market rebounded from first-quarter weakness. The Fund's barbell yield curve positioning contributed positively amid significant curve flattening. Healthcare credit spreads widened while prepaid gas bonds showed relative weakness. The manager maintains a modestly long-duration posture with overweight to single-A credits, viewing the outlook as constructive despite richer valuations.

Fidelity Freedom 2055 delivered 14.95% in Q2 2026, beating its benchmark by 74 bps on semiconductor strength and growth stock leadership. The fund increased emerging-markets equity exposure on accelerating earnings while trimming commodities as inflation normalized. Portfolio remains overweight equities with preference for non-U.S. assets on valuation. Active allocation and strong security selection in semiconductors and AI-related holdings drove outperformance.

The Davenport Value & Income Fund underperformed in Q2 2026 as AI and semiconductor momentum dominated markets, but management maintains disciplined value orientation. Top performers included Texas Instruments, Cisco, and health insurers as underwriting cycles improved. The fund added Abbott Laboratories and International Flavors & Fragrances at attractive valuations with solid dividend yields. Six holdings raised dividends including Johnson & Johnson's 64th consecutive increase, reinforcing the fund's commitment to quality dividend payers over capital-intensive growth stocks.

L1 Capital delivered 12.7% in Q2 2026 through concentrated positions in quality value stocks trading at 10x P/E with double-digit growth. Strong performance from Qantas, BlueScope, James Hardie, Hudbay and Goodman offset commodity weakness. The manager added to copper, construction materials, travel and gold during market volatility while trimming infrastructure and oil & gas. Portfolio positioned in commodities, construction materials and infrastructure with compelling valuations and medium-term upside.

Hotchkis & Wiley underperformed in Q2 2026 by avoiding the AI-driven semiconductor rally they view as a speculative bubble with unsustainable valuations. The fund favors enterprise software where AI disruption fears are overstated and has added to overlooked healthcare and consumer staples. Management expects mean reversion when market euphoria subsides and believes their attractively valued, high-quality portfolio is positioned for that outcome.

Hotchkis & Wiley underperformed in Q2 2026 by avoiding the speculative AI-driven momentum rally that pushed valuations beyond dot-com bubble levels. The managers question the sustainability of earnings growth fueled by $850 billion in AI data center spending against minimal revenue generation. They maintain conviction in energy despite oil price weakness and added healthcare exposure, positioning for market reversion to rational fundamentals and valuation discipline.

LVS Advisory's Growth portfolio focuses on deep value special situations and quality compounders. Vistance Networks offers $24-28 in value for $13.52 invested through asset sales and dividends, with the remaining business trading at 4.4x free cash flow. Hikari Tsushin, a Japanese conglomerate with Berkshire-like discipline, trades at 2.0x earnings for operating businesses after backing out investments, with management owning significant equity.

LVS Advisory targets event-driven special situations and undervalued compounders. Vistance Networks, a distressed telecom roll-up, offers $24-28 in value from a $13.52 entry through asset sales and special dividends, with remaining business likely to be sold. Hikari Tsushin, a Japanese conglomerate with 17% equity CAGR and exceptional capital allocation, trades at 2.0x earnings for operating businesses following a 15% drawdown.

Meridian Small Cap Growth returned 21.54% in Q2 2026, trailing its benchmark's 25.71% as quality-oriented, lower-beta positioning faced headwinds in a risk-on rally favoring high-beta stocks. Strong stock selection partially offset factor drag, led by medical device and biotech winners including Hinge Health, Definium Therapeutics, and Veracyte. The fund maintains its focus on recurring-revenue businesses with competitive moats while monitoring Iran conflict, inflation, and rate risks.

Manager holds concentrated positions in hated cable/telecom names trading at extreme discounts while maintaining winners Millicom and Garrett Motion despite material appreciation. Charter Communications trades at ~50% forward free cash flow yield with bonds near par, suggesting 2-4x equity upside. Broad US markets at Shiller P/E ~41x with geopolitical risks and AI spending sustainability underpriced. Discipline to hold winners and add to inflection points drives returns despite periodic volatility.

Pzena Focused Value outperformed in Q2 2026 on health care strength, led by managed care insurers benefiting from favorable medical cost trends. The manager trimmed semiconductors on unsustainable 80%+ margins, avoiding the cyclical peak, and initiated software positions after AI-disruption fears created decade-low valuations. Extreme market concentration has created compelling value opportunities in consumer and health care businesses left behind by the AI rally.

Artisan Focus Fund delivered 21.11% in Q2 2026, outperforming the S&P 500 by 591 basis points through broad-based gains across semiconductors, aerospace, industrials and financials. The concentrated portfolio targets companies experiencing improving fundamentals during major capital formation cycles, with materially lower index dependence than the benchmark while positioned for higher returns on capital and faster earnings growth through 2028.

Horos delivered solid Q2 returns while maintaining deep skepticism about the AI investment boom's sustainability. The manager sees the $700 billion hyperscaler spending spree creating semiconductor bottlenecks and valuations reminiscent of historical bubbles. SpaceX's $2 trillion IPO despite massive cash burn epitomizes the euphoria. The portfolio was repositioned away from recent winners toward undervalued holdings like Suzano and French holding companies, maintaining strict focus on margin of safety.

Alpine Capital rotated from semiconductors into hyperscalers after June's AI infrastructure selloff, increasing Microsoft to overweight and initiating Oracle positions. The AI buildout is real and defensible with capex approaching $1 trillion by 2028. Big tech is attractively priced with reinforced moats following ROI concerns. Extreme single-stock dispersion creates opportunities amid neutral near-term outlook and structurally declining rate environment.

PM Capital Enhanced Yield Fund delivered 1.5% in Q2 2026, driven by strategic fixed interest rate positioning that capitalized on declining bond yields as inflation fears eased. The fund added high-quality banking and infrastructure exposures at attractive 5.5-6.1% yields during volatility. Holdings in resilient non-discretionary consumer businesses like Woolworths and Tesco outperformed. Significant dry powder remains for deployment as markets consolidate.

PM Capital Australian Companies Fund delivered 4.9% in Q2 2026, driven by European banks, Irish homebuilders, and a Capstone Copper recovery. The manager actively trimmed copper holdings on valuation concerns despite strong fundamentals, while initiating CSL at attractive multiples. Persistent inflation, AI investment boom parallels to the dot.com era, and government spending remain key risks. The portfolio targets materially undervalued businesses positioned for valuation normalization.

Parnassus Mid Cap Growth delivered 20.04% in Q2 2026, crushing the benchmark by 549 basis points on AI-driven semiconductor strength. The managers repositioned toward idiosyncratic growth stories, adding AI infrastructure plays while exiting disruption-vulnerable software names. With 31% in Technology and 28% in Industrials, the portfolio balances AI momentum against broadening growth opportunities as manufacturing recovers and economic expansion potentially extends beyond AI in H2 2026.

Weitz Partners III returned 7.97% in Q2 2026, underperforming the 15.71% benchmark as valuation discipline limited participation in concentrated AI gains. The fund selectively invested in AI through Texas Instruments and Alphabet while exiting Accenture and Salesforce on disintermediation concerns. New positions in Netflix and Capital One represent contrarian value opportunities. Cash rose to 12% as managers adopted a modestly defensive stance amid elevated valuations.

abrdn's international small-cap fund outperformed in Q2 2026 on AI infrastructure strength, returning 11.71%. The manager trimmed AI winners and rotated into semiconductor equipment, GLP-1 manufacturing, and emerging market telecom infrastructure. Three positions exited due to weakening competitive dynamics. Portfolio positioned for broadening market leadership with quality companies delivering superior earnings growth at narrowed valuation premium to benchmark.

Polaris Global Equity delivered 13.26% in Q2, driven by AI semiconductor infrastructure (SK hynix, Samsung) and healthcare innovation (Lantheus M&A, CVS GLP-1). The manager rotated from richly valued names into Adobe, Fujifilm, UniCredit, and Booking Holdings, viewing market concentration as creating value dislocations. China detracted on Alibaba regulatory headwinds. The manager sees early innings of a multi-year international value opportunity with 2.1% cash.

WestEnd Capital returned 16.3% net in Q2 2026, driven by owning accelerating earnings growers in a market posting 29% year-over-year profit growth and record margins. The manager added infrastructure, senior housing, fintech, and consumer positions while passing on SpaceX's IPO on valuation grounds. The portfolio targets businesses benefiting from structural themes where earnings growth and free cash flow justify current prices.

The Fund suffered a 36% decline as AI fears drove indiscriminate software selling despite portfolio companies growing earnings 28% year-on-year. The manager views incumbent enterprise platforms as positioned to benefit from AI through proprietary data and trusted distribution, not be disrupted. With the portfolio now trading at 22x forward earnings while businesses continue compounding, the manager sees a rare opportunity for patient capital.

Third Avenue Small-Cap Value Fund delivered 21.72% year-to-date through a concentrated portfolio of undervalued, well-financed businesses. U.S. small-caps reached historically extreme valuation lows versus large-caps, creating compelling multi-year outperformance potential. Six holdings were acquired at healthy premiums in six quarters amid surging M&A activity. The Fund initiated eight new positions in deeply pessimistic areas while maintaining disciplined avoidance of semiconductor momentum and unprofitable speculation.

Harding Loevner's global small-cap strategy returned 8.05% net in Q2 2026, lagging the benchmark's 15.05% return. The concentrated portfolio maintains significant geographic diversification with underweight US exposure and overweights to Europe and Frontier Markets. Top holdings include EnerSys, Clarkson, and Watts. The fund's Industrials overweight and absence from Real Estate distinguish its positioning from the index.

The fund returned 10.3% gross in Q2 2026, outperforming the 9.8% benchmark, driven by semiconductor and industrial holdings benefiting from AI data center demand. The manager is positioning for physical AI applications in robotics and automation, adding Japanese quality-growth companies at improved valuations including Harmonic Drive Systems, Japan Elevator Service, and Rakus. Year-to-date performance of 5.9% trails the index's 9.4% return.

The fund navigated extreme market concentration and momentum by avoiding richly valued AI stocks while capitalizing on overlooked opportunities in enterprise software and healthcare. The manager believes AI disruption fears for mission-critical software are overstated and sees attractive risk/return in defensive sectors left behind in the rally. Healthcare insurers drove outperformance as profitability recovers from cycle lows.