Conestoga SMid Cap underperformed in Q1 2026 as software valuations compressed despite solid fundamentals. Aerospace and defense holdings like RBC Bearings drove positive performance through strong demand and growing backlogs. The manager reduced software exposure while adding quality names like UL Solutions. Portfolio fundamentals remain strong despite market disconnect between business performance and stock prices.

Conestoga's micro cap strategy underperformed in Q1 2026 as geopolitical tensions drove rotation away from software toward energy and domestic-focused stocks. Software holdings declined 29% despite strong fundamentals due to AI disruption concerns and valuation compression. The firm selectively reduced software exposure while adding positions in quality businesses, maintaining focus on long-term value creation despite near-term volatility.

PM Capital's Australian fund fell 1.6% in volatile March as rate hikes hit REITs and gold miners faced operational issues. Strong copper performance from BHP and coal gains from Stanmore offset weakness. Managers used market dislocation to add to beaten-down positions, viewing current valuations as attractive despite near-term headwinds.

AI disruption hysteria created indiscriminate selling, allowing Vulcan to buy quality businesses at $0.50 on the dollar. The firm believes enterprise software companies like SAP will benefit from AI rather than be disrupted. Portfolio price-to-value ratios improved to upper 40s, creating exceptional long-term return potential despite short-term underperformance.

Small Cap strategy down 6.8% as AI fears create buying opportunities at $0.50 on the dollar valuations. Added Ryan Specialty Holdings, TransUnion, StandardAero, and CTS Eventim while trimming five positions. Manager believes AI will enhance rather than disrupt holdings with proprietary data and embedded workflows. Views current environment as once-in-a-decade opportunity for long-term investors.

Concentrated value fund navigated Q1 2026 geopolitical turmoil and AI disruption with -1.7% decline. Benefited from energy supply disruptions via LyondellBasell and defense spending via Lockheed Martin. Added Amazon position while reducing Alphabet. Increased stakes in beaten-down quality names like Visa and Mastercard. Managers concerned about systemic risks despite market recovery to new highs.

Smead International Value Fund delivered 14.39% returns in Q1 2026 through unconventional positioning: 38% in oil stocks capitalizing on supply tightness and 20%+ in European banks seeing enhanced capital returns. Despite detractors like Pandora facing silver price inflation, the concentrated approach targeting sustainable returns on capital across out-of-favor sectors continues outperforming conventional strategies.

Renaissance's international small cap strategy outperformed in Q1 2026 despite Iran war volatility. Energy overweight and AI beneficiary Tower Semiconductor drove gains while commercial real estate faced disruption fears. China lowered growth targets amid economic transition, Europe advanced trade deals, and Japan's ruling party won supermajority. Strong earnings growth expectations and attractive valuations support continued international equity appeal.

Bristol Gate underperformed by 745bp in Q1 as commodity sectors surged while quality dividend-growth stocks lagged. Energy's 30% rally and gold hitting $5,000 drove narrow market leadership that penalized the strategy's structural underweights. Stock-specific weakness in TerraVest and Pet Valu compounded allocation headwinds. Management maintains conviction in high-quality holdings positioned for full-cycle outperformance.

Bristol Gate sees market dissonance as AI enthusiasm shifts to selective scrutiny, creating valuation opportunities. Portfolio companies delivered strong fundamentals with 14.6% dividend growth versus S&P 500's 5.5%. Added energy infrastructure and upgraded HVAC exposure while maintaining conviction in dividend-growing companies with durable competitive advantages positioned for long-term outperformance.

Brandes International Equity Fund gained 2.59% in Q1 2026, outperforming on energy strength and AI-driven semiconductor demand while facing headwinds from AI disruption concerns in IT services. The fund added Sodexo and exited Engie, maintaining conviction in international value opportunities despite increased market volatility from geopolitical and economic uncertainties.

International value manager navigated geopolitical chaos in Q1 2026 with energy and gold holdings driving performance amid Iran war. Sold top performer OceanaGold at fair value, added four new positions including luxury fragrance and travel companies. Plans to deploy 8.4% cash position into attractive individual opportunities despite ongoing macro uncertainties.

Bretton Fund's concentrated portfolio lagged in Q1 2026 as AI concerns pressured payment stocks despite strong underlying fundamentals. Managers defend payment processors' network effects and fraud prevention moats against AI disruption. Old economy retailers outperformed while tech cooled. Fund maintains conviction in concentrated approach targeting quality businesses with strong earnings growth and capital returns.

Boyar Value Group sees opportunity amid Q1 2026 market volatility, warning against quality bubble while identifying value in overlooked names like Madison Square Garden Sports and Uber. Despite geopolitical oil shocks and AI disruption fears hitting mega-caps, they believe market leadership is broadening toward small caps, favoring disciplined value investors over momentum chasers.

Harbor Mid Cap Value outperformed during Q1's market turbulence, benefiting from AI storage demand (Sandisk), energy surge from Iran conflict (Matador, APA), and ongoing rotation toward value stocks. Fund trades at attractive 10x forward earnings versus 16x benchmark, with management excited about mid-cap value opportunities as largest companies remain expensive.

Income-focused fund outperformed during geopolitical volatility, benefiting from energy exposure while trimming after oil price spikes. Added to AI-unfairly penalized names like Universal Music Group. Manager sees attractive valuations in dividend stocks at 2000-bubble-level discounts to growth names, positioning for long-term outperformance as free money era ends.

Fixed income fund outperformed benchmark despite Iran conflict volatility by adding quality corporate bonds during market stress. Manager maintains defensive positioning with shorter duration and Treasury allocation while monitoring private credit stress and fiscal risks. Fixed income yields attractive but corporate spreads remain tight, requiring selective security selection and patient capital deployment.

BNY Mellon Global Emerging Markets Fund outperformed in Q1 2026 despite Middle East conflict volatility. Strong semiconductor and energy positions offset weakness in Indian financials and consumer names. The manager remains constructive on emerging market valuations relative to developed markets, focusing on companies with strong fundamentals and long-term growth potential.

WestEnd's industrial and energy-focused portfolio outperformed by 9% in Q1 2026, led by aluminum, uranium, and natural gas holdings. The manager raised cash by trimming expensive growth names and exiting software positions ahead of AI disruption. Despite Iran tensions, earnings growth remains strong and the AI theme increasingly favors energy infrastructure over software.

Pelican Bay delivered strong Q1 outperformance driven by energy sector gains as oil spiked on Middle East tensions. Manager recycled capital from fully valued winners, exiting Micron and adding to FactSet during software weakness. New Zoom position reflects conviction that AI fears are overdone for specialized enterprise software with embedded workflows.

European small-cap software and classifieds fund down 21.75% in Q1 amid AI-driven sector selling despite strong underlying fundamentals. Manager upgraded portfolio quality, initiating Scout24 and Swiss Marketplace Group positions while maintaining conviction in SaaS businesses integrating AI successfully. Views current valuation dislocation as opportunity for patient capital focused on durable competitive advantages.

Invesco Small Cap Value Fund outperformed in Q1 2026 through strong semiconductor stock selection and opportunistic portfolio repositioning. Managers see compelling long-term opportunities in small-cap value stocks trading at historical discounts to large-caps, employing intrinsic value analysis to identify significantly undervalued companies with attractive capital appreciation potential.

Precious metals correction creates opportunity in secular bull market driven by monetary debasement and Fed money printing necessity. Gold miners trading at historically cheap valuations with 70% margins while central banks accumulate reserves. War-driven inflation and unsustainable debt burden will force aggressive Fed easing despite stagflationary risks.

Hosking Partners outperformed 6.4% in Q1 2026 through capital cycle positioning in consolidated memory semiconductors and energy sectors. AI demand drove memory returns while Iran conflict boosted energy holdings. Added fifth portfolio manager and expanded to 408 stocks. Maintains counter-consensus energy exposure despite macro headwinds, relying on diversification for resilience.

Q1 saw the SaaSpocolypse create structural opportunities in SaaS as AI fears drove 38% median selloffs in application software. Adaptive companies with moats like Sprout Social trade at compelling valuations despite incorporating agentic capabilities. The manager added aggressively into weakness, viewing smaller SaaS players as unfairly discounted relative to their structural advantages.

Laughing Water Capital's concentrated small cap portfolio has shifted toward shorter timeline special situations with strong balance sheets. Key holdings include biotech royalty plays and recovery stories trading at attractive valuations. After ten years of large cap dominance, manager sees potential reversal favoring small caps given record valuation spreads and expected earnings outperformance.

Nightview rotated aggressively into enterprise software during Q1 2026's broad sector repricing, building positions in ServiceNow, Shopify, Autodesk, and Axon. Manager views AI as enhancing rather than threatening quality software platforms with deep workflow integration. Maintains concentrated 20-position portfolio with Tesla as largest holding. Bullish on long-term compounding despite near-term macro volatility.

Appalaches outperformed in Q1 by selling overvalued semiconductor equipment stocks and buying Visa and Mastercard during AI and regulatory fears. Manager believes payment networks' structural advantages and scale will persist through challenges, with both companies already developing agentic commerce protocols. Focus remains on quality businesses at attractive prices during uncertainty.

TimesSquare's mid cap growth strategy outperformed in Q1 2026 by capitalizing on geopolitical themes including LNG supply disruption, defense spending, and AI infrastructure demand. Active portfolio management included trimming winners and liquidating AI-disrupted positions. The strategy targets disciplined management teams navigating strategic capital allocation over pure economic returns in an increasingly complex environment.

Emerging market local debt faced Q1 volatility from Middle East tensions but maintains attractive fundamentals. Central bank easing, continued disinflation, and dollar weakness create compelling opportunities. Despite underperformance, managers see medium-term upside from high real yields, improving policy frameworks, and narrowing growth differentials versus developed markets.

Active international bond strategy capitalizing on policy divergence across countries. Iran conflict drove oil shock and rate hike fears, but managers expect central banks to cut rates as growth slows. Increased emerging market currency and duration exposure while adding developed market credit. Dollar strength viewed as temporary with international assets offering attractive opportunities from geopolitical dislocations.

Invesco Discovery Fund outperformed significantly in Q1 2026 despite market volatility from Middle East conflict. Strong stock selection in AI-benefiting semiconductor and optical connectivity names drove returns. Management maintains focus on premier growth compounders while prioritizing risk management until geopolitical resolution enables return to constructive positioning.

White Falcon posted -6.1% in Q1 amid software sector volatility but used the drawdown to meaningfully increase allocation to essential software companies incorporating AI. Key positions include Oracle transforming into a cloud AI business and Unity Software benefiting from AI-driven game creation acceleration. Precious metals provided strong performance offset.

Mid-cap value fund outperformed on energy exposure during Iran crisis, with oil surging 100% benefiting E&P holdings. Manager sees structural oil undersupply ahead while viewing AI software disruption fears and health insurer Medicare pressures as temporary headwinds creating opportunities in quality franchises trading at attractive valuations.

Brasada Capital sees a major rotation from Magnificent 7 dominance to broader market participation, with small caps and international stocks already outperforming in 2026. They've exited AI-threatened software positions while adding niche plays like Postal Realty Trust and Mexican airport operator OMAB positioned for nearshoring trends.

Global value fund underperformed despite 46% energy gains as software and healthcare overweights detracted. Manager maintains conviction that AI displacement fears for enterprise software are overblown, citing strong retention and switching costs. Energy positioning benefited from geopolitical supply disruptions, reinforcing thesis of structural undersupply. Disciplined approach continues targeting controversial segments with temporary headwinds.

Value manager underperformed in Q1 as geopolitical oil shock benefited energy overweight but software holdings suffered from AI disruption fears. Manager views software selloff as opportunity, not risk, citing defensive moats of enterprise platforms. Maintains contrarian conviction in energy's structural undersupply dynamics and enterprise software's ability to monetize rather than be displaced by AI.

EdgePoint argues most active managers are closet indexers driven by career risk, while markets cycle through predictable fear-greed patterns. The firm maintains high-conviction concentrated positioning exemplified by Dollar Tree's successful pricing evolution. Despite Q1's -0.32% decline, EdgePoint's behavioral-aware investment process and long-term focus have generated strong returns across 50+ years of market cycles.

Longleaf Global declined 4.43% in Q1 amid market volatility from Iran War and private credit concerns. The fund's P/V ratio reached mid-50s%, historically attractive levels. Strong execution at FedEx and completed Rayonier merger were highlights, while temporary price-value disconnects affected several holdings. Management increased engagement efforts and sees portfolio well-positioned for private credit stress benefits.

Contrarius repositioned toward AI-Proof Consumer Staples and select AI-Winners, accepting Q1 underperformance for long-term value. Diageo exemplifies the strategy: irreplaceable brands trading at 12x earnings versus 20x+ historically. New CEO executing turnaround while structural tailwinds from premiumization and emerging market demographics remain intact. Current challenges viewed as cyclical opportunities for patient capital.

Gramercy's emerging markets debt fund weathered March 2026 Middle East conflict through strategic positioning. Underweight Asia allocation and absence of Turkish exposure provided protection, while distressed Brazilian corporates contributed positively. Local currency positions and duration-sensitive investments detracted as energy price surge rekindled inflation concerns and drove Treasury yields higher across the curve.

ACATIS delivered resilient performance during March 2026's Iran war volatility through strategic oil and commodity positioning. The value-focused approach identified opportunities in AI infrastructure, fertilizer supply disruptions, and nuclear renaissance themes. Despite geopolitical headwinds, the manager sees attractive entry points with P/E ratios of 10-15 available, maintaining conviction in quality companies while expecting conflict resolution by mid-2026.

Thornburg International outperformed in Q1 2026 despite geopolitical turmoil from the Iran conflict driving energy supply shocks and inflation fears. The fund's focus on resilient, attractively valued businesses with strong fundamentals enabled effective navigation of volatile conditions. Energy and materials holdings contributed while Chinese technology names detracted in a challenging global growth environment.