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.

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.

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.

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.

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.

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.

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.

Canopy's concentrated small-cap fund declined 0.6% in April, trimming SBAC on acquisition rumors while adding to Badger Meter after earnings disappointment. The portfolio maintains superior quality metrics with 29% EBIT margins and 42% return on capital versus benchmark. Strong AI earnings drove broader market recovery despite geopolitical tensions and elevated oil prices.

Polen Focus Growth managers view Q1's 17% decline as creating attractive buying opportunities in mission-critical software companies unfairly punished by AI disruption fears. They consolidated around highest conviction names like ServiceNow and CoStar Group while adding semiconductor exposure through Lam Research. Portfolio trades at discount to index despite mid-teens expected earnings growth.

Polen Capital executed significant portfolio upgrades in Q1 2026, adding quality names in AI semiconductors, defense, and energy infrastructure while maintaining concentrated international growth approach. Despite -14.4% quarterly underperformance, the manager sees compelling opportunities in undervalued quality companies outside the US, expecting 15%+ earnings growth to drive improved performance as geopolitical uncertainty subsides.

Polen's SMID growth strategy slightly outperformed in a volatile Q1 marked by AI disruption fears and geopolitical risks. Memory and energy infrastructure names drove outperformance while fintech holdings lagged on rate concerns. The manager reduced financial exposure, added technology positions, and maintains conviction in electrification and aerospace themes while emphasizing their dynamic approach to managing accelerating technological disruption.

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.

Crypto Native Capital holds 40% cash during ongoing bear market, expecting continued downside following historical patterns of 70%+ drawdowns over one year. Six months into cycle with Bitcoin down 45%. Framework for re-entry requires sustained recovery above 200-day moving average. Criticizes digital asset treasury companies for misaligned incentives. Emphasizes patience over premature deployment.

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.

Montaka's March quarter saw broad portfolio declines driven by valuation compression, not fundamental weakness. The manager added BAE Systems, TSMC, Uber, and Intercontinental Exchange while maintaining conviction in AI infrastructure and defense themes. Despite short-term volatility from geopolitical conflicts and software sector narratives, strong competitive advantages are now available at attractive valuations, creating compelling long-term opportunities.

Royal London Global Equity Diversified Fund underperformed in Q1 2026 as geopolitical escalation drove rotation from technology growth stocks to defensive sectors. The fund repositioned toward structural themes including energy security, defense spending, and infrastructure investment while trimming technology exposure. Energy and materials holdings provided positive contributions while mega-cap technology stocks detracted from performance.

NCG's small cap growth strategy outperformed in volatile 1Q26 by focusing on AI infrastructure, defense, and quality growth companies. Strong performance from semiconductors, optical components, and aerospace holdings offset geopolitical headwinds. Small cap fundamentals improving with positive earnings growth and attractive valuations versus large caps. Fed easing and market broadening create favorable environment for selective stock picking.

Columbia Dividend Opportunity Fund outperformed significantly in Q1 2026, driven by energy sector strength and value stock rotation. Key contributors included Exxon Mobil, Chevron, and Valero Energy amid Iran war-driven oil price spikes. The manager maintains bullish outlook on dividend-paying value stocks, expecting continued broadening beyond mega-cap technology toward quality opportunities.

Technology fund outperformed despite -6% decline as AI infrastructure buildout drove semiconductor equipment strength while traditional software models faced disruption. Oil shock and geopolitical tensions pressured growth stocks. Semiconductor capex hit records with TSM announcing $50B+ budget. Storage and optical components surged on AI demand while SaaS companies repriced on AI-native competition threats.