Broadleaf returned 20.5% in Q2, positioning for a regime change from digital consumer to AI-driven enterprise productivity. Hyperscalers are deploying unprecedented capital into datacenters, creating bottlenecks in semiconductors and power infrastructure with commitments extending through 2030. The portfolio has rotated from software into semiconductor value chains and HALO assets. The manager sees this convergence of economic and innovation cycles as ideal for concentrated growth investing.

Anchor Capital sees global markets supported by strong earnings and AI infrastructure spending but requiring greater selectivity as valuations leave less room for error. U.S. equities lead on earnings strength while international markets offer targeted opportunities in Japan and emerging market AI supply chains. Persistent inflation, hawkish Fed communication, and elevated long-term rates demand focus on cash flow quality, balance sheet strength, and valuation discipline over broad beta exposure.

Horizon Kinetics maintains long-term conviction in compounding assets despite near-term volatility. Securities exchanges trade at crisis-era valuations while demonstrating resilient business models. Bitcoin remains on track for $150,000-$270,000 by 2028 halving. Land holdings offer perpetual compounding and inflation protection. Precious metals royalties reduced on valuation concerns. AI hyperscalers face deteriorating economics at extreme multiples. Patient capital and understanding time's role in compounding remain essential to capturing value.

Q2 2026 delivered exceptional market performance with S&P 500 up 15.2% following Iran ceasefire resolution. Corporate earnings grew 27% in Q1 marking six consecutive quarters of double-digit expansion with notable breadth beyond technology. New Fed leadership under Warsh brings policy changes but core mandate unchanged. AI infrastructure spending drives growth while market participation broadens. Bull market intact as long as earnings momentum continues.

The Fund returned 13.8% in Q2 2026, outperforming on semiconductor equipment strength as AI infrastructure build-out accelerated. Applied Materials, KLA and Lam Research all doubled as memory and foundry capex surged. Hyperscalers raised 2026 capex to $758bn but underperformed on monetization concerns. Geopolitical tensions eased with oil falling from $120 to $70s, though inflation hit three-year highs. The Fund added AMD and Nasdaq while exiting Adobe and Intuit.

Glenmede expects 2.7% U.S. GDP growth in 2026 as fiscal stimulus and AI productivity gains offset tariff and energy headwinds. Geopolitical tensions drove inflation to 4.2% before easing late quarter. Equity markets rebounded sharply with broadening leadership—emerging markets up 24%, small caps up 21%. The second half will be defined by mega IPOs, AI capital spending at 2.5% of GDP, hawkish Fed policy, and midterm elections.

Infuse Partners suffered significant Q2 underperformance by misjudging the agentic AI shift, being overweight software and underweight semiconductors. Analysis revealed that lowering quality standards drove nearly all losses since inception, while top-ranked companies in the fund's proprietary system delivered resilient returns. The fund is now raising its quality bar to the highest level and eliminating value-destructive trading to focus exclusively on its core strength of identifying exceptional companies.

Markets rebounded strongly in Q2 with the S&P 500 up 15% as oil prices reversed from $115 to $70 following a Middle East ceasefire. Semiconductor stocks surged 88% on massive AI infrastructure spending reaching $724 billion annually. Market breadth expanded with small-caps gaining 22% year-to-date, outperforming large-caps on improving margins and attractive valuations. Fed shifted toward potential rate hikes but easing oil may reduce pressure.

Manole Capital positions in financial infrastructure benefiting from volatility through exchange operators and emerging digital rails. Portfolio captures increased trading activity from geopolitical uncertainty while participating in stablecoin adoption and prediction market evolution. Manager anticipates Fed philosophical shift toward monetarist framework and IPO window reopening but emphasizes valuation discipline. Strategy focuses on picks-and-shovels businesses building payment and market infrastructure rather than directional market bets.

Q2 2026 delivered the S&P 500's strongest quarter since 2020, up 15.2%, driven by semiconductors' record 88% surge and renewed AI enthusiasm. Small-caps led with Russell 2000 up 21.6%. Despite the rally reaching new all-time highs, inflation accelerated to 4.2%, consumer sentiment hit record lows, and the Fed signaled additional tightening ahead under new Chair Warsh.

Vltava Fund argues AI shifts investing advantage from information to judgment and originality. Manager sold semiconductor equipment stocks at extreme valuations and oil producer Cenovus after geopolitical spike, buying Visa and Kazakhstan digital ecosystem Kaspi.kz at attractive prices. Portfolio avoids AI-driven speculation, focusing on quality businesses with sustainable fundamentals and reasonable valuations in calmer market segments where margin of safety exists.

Adestella returned 10.1% in 2025 led by AI infrastructure plays Nebius and Power Solutions. Manager maintains small-cap value discipline despite decade of underperformance, currently concentrated in Dell on enterprise AI server thesis and aerospace aftermarket suppliers. Initiated software positions in Toast and Okta as AI-disruption-resistant systems of record. Net exposure 90%, awaiting small-cap mean reversion while managing factor concentration risks.

North Sky Capital is capitalizing on the convergence of energy transition, AI infrastructure buildout, and secondary market maturation. Multiple portfolio companies went public in Q2 2026 signaling improved liquidity. The firm is deploying capital into EV charging, energy storage, and battery technology positioned to benefit from a $2.3 trillion infrastructure supercycle. Battery advancements from Tesla and CATL could dramatically accelerate EV adoption and expand addressable markets.

Nordic small caps offer compelling value at single-digit EV/EBIT multiples with take-private activity accelerating. Infrastructure spending through Skanska provides multi-year growth as order momentum confirms thesis. AI regulatory and political risks in Europe are underpriced, creating opportunities across valuation spectrum. Telecom sector vulnerable after exceptional run. Fund positioned for continued small cap M&A activity and infrastructure tailwinds while hedging AI and telecom valuation risk.

Recurve is down 14.9% YTD, driven by Carvana's 22% decline despite rising earnings estimates. The manager maintains 47% exposure to Carvana, expecting EBITDA to triple over three years as the company sustains 40% growth. Short-term volatility from weekly data and operational improvements at reconditioning centers is viewed as noise. The concentrated portfolio targets multi-year compounding, not quarterly results, with conviction unchanged despite near-term underperformance.

Protean Select runs 25% net exposure, long undervalued Nordic small caps and infrastructure plays while shorting overvalued AI winners and telecoms. Manager exploits M&A opportunities in out-of-favor small caps trading at single-digit multiples, adds Skanska on infrastructure tailwinds, and shorts Telia/Tele2 after 120% run. AI regulatory friction in Europe creates mispricing on both sides.

Perpetual futures are becoming the dominant trading instrument across asset classes, with Hyperliquid capturing $250B monthly volume as the leading decentralized venue. The platform has proven superior price discovery for pre-IPO equities and 24/7 commodity trading, with recent CFTC approvals opening US adoption. Separately, tokenized startup platforms are converging to restore public access to venture-scale growth, though founder alignment and regulatory clarity remain key challenges.

St. James Investment Company sees a fundamental market shift from the post-2008 era of easy money toward an environment demanding physical infrastructure and tangible assets. The Federal Reserve's easy money bias has created fragility while inflation erodes purchasing power. AI buildout, defense spending, and supply-chain reshoring are driving demand for data centers, power infrastructure, and industrial capacity. The real opportunity lies in physical economy businesses supporting the digital world, not headline-grabbing technology stocks.

Small-caps maintained market leadership in Q2 2026 with the Russell 2000 up 21.5% and Russell Microcap up 25.6%. Earnings growth drove over 60% of returns, fueled by AI infrastructure spending benefiting small-cap suppliers. Despite strong performance, valuations remain near 25-year lows versus large-cap while earnings fundamentals improve. The combination of attractive valuations and accelerating earnings supports continued small-cap outperformance.

Militia Capital returned 5.02% net in Q2 2026, trailing all benchmarks as SPY and IWM surged over 15% and 21% respectively. The leveraged long-short strategy maintained near-zero correlation with major indices while experiencing an 8.59% maximum drawdown. Since inception in 2021, the fund has delivered 48.8% annualized returns with a 2.04 Sharpe ratio, significantly outperforming benchmarks on a risk-adjusted basis.

The fund underperformed in Q2 2026 as it missed the sharp rally in speculative technology names and quantum computing stocks, while overweights to materials and energy detracted. Semiconductor and defense holdings performed well. The manager added regional banks and commercial real estate services, maintaining conviction in small/mid-cap fundamentals despite near-term geopolitical and election risks. Valuations remain attractive at multi-decade lows relative to large caps.

Bailard Technology delivered 41% in Q2 by aggressively positioning into AI infrastructure hardware and semiconductors while rotating out of application software. Memory, semicap equipment, cybersecurity, and observability drove outperformance as AI deployment accelerated. The team views hardware as the cleanest AI expression and favors middle-stack infrastructure software over applications facing pricing pressure from AI-native competitors. Portfolio remains concentrated with minimal cash.

Norbury Capital delivered +8.2% year-to-date through June 2026, outpacing its European small-cap benchmark by 300 basis points. The fund completed its first activist campaign with OCI Global, exiting with a decent return after successfully challenging corporate governance issues and securing a cash alternative offer. Management sees abundant opportunities to redeploy capital across European small caps.

The Fund returned 14.95% versus the benchmark's 24.05%, underperforming due to its underweight in SK Hynix, which surged 224.7% on AI-driven memory demand. The rally was highly concentrated in Korean and Taiwanese semiconductors. The Fund's valuation discipline kept it underweight the largest memory names, detracting this quarter but positioning it for broader participation if leadership rotates toward lagging financials, industrials, and consumer names.

Baron Durable Advantage Fund gained 13.6% in Q2 2026 as markets recovered from Iran war volatility. AI infrastructure beneficiaries led performance with TSMC up 41.6% and Alphabet up 23.2% on accelerating cloud demand. The manager views valuations as irrationally compressed, with NVIDIA at 14.5x forward P/E despite 113% earnings growth. Portfolio fundamentals strengthened while multiples compressed 9.7% year-to-date, creating attractive entry points for long-term investors.

Franklin Growth Opportunities Fund outperformed in Q2 2026 with a 20.9% return, led by Micron Technology's AI-driven surge and SpaceX's successful IPO. The fund maintains a quality-focused, multi-cap growth strategy concentrated in AI and automation themes producing productivity gains across sectors. Despite geopolitical risks, the manager expects robust earnings growth into 2027 to support continued market strength, favoring high-quality franchises with durable competitive advantages.

Franklin High Income Fund delivered 2.19% in Q2 2026 as resilient corporate fundamentals and active capital markets supported high-yield bonds despite hawkish Fed commentary. Default rates remain below historical averages at 2.67%, while fund inflows totaled $2.3 billion in June. The fund maintains a constructive outlook with ratings-quality positioning favoring Ca and B bonds, though spreads are fair but not compelling and caution on deeply distressed credits persists.

Jensen Quality Mid Cap Fund's 2.38% Q2 return lagged the 13.69% benchmark as the fund avoided highly cyclical AI infrastructure stocks inconsistent with its quality criteria. The disciplined approach targets companies with 15%+ ROE for ten consecutive years, durable competitive advantages, and stable earnings. Top holdings include Levi Strauss, United Rentals, and Crown Holdings. The outlook remains constructive despite Fed uncertainty and geopolitical risks.

SoftBank is executing an aggressive strategy to dominate the ASI era, investing $64.6 billion cumulatively in OpenAI while building massive AI infrastructure (15 GW data centers globally) and consolidating semiconductor capabilities through Arm and Ampere. Fiscal 2025 delivered record ¥5.0 trillion net income driven by ¥6.7 trillion OpenAI-related gains. Management targets ¥1 quadrillion NAV by 2042, expressing extreme conviction that the AI revolution has only just begun.

Conestoga's Micro Cap Composite returned 22.16% in 2Q26, trailing the benchmark's 28.98% gain driven by historically narrow, speculative AI-related leadership. Biotechnology holdings delivered exceptional performance, contributing over 600 basis points, while defense and industrial holdings also performed well. The manager maintains conviction in high-quality growth businesses, expecting market leadership to broaden as AI speculation normalizes and fundamentals reassert themselves in a shifting rate environment.

YCG owns global champion businesses with permanent competitive advantages that have compounded earnings at 13.9% annually but now trade at a historic discount as capital floods into AI infrastructure. The manager views the $388 billion AI build-out as history's largest capital rush destined to follow patterns where investors lose money. This creates the most compelling opportunity for quality businesses since the firm's inception.

Royal London Global Equity Diversified outperformed in Q2 2026 on strong semiconductor and AI infrastructure holdings including Intel, Micron, and TSMC. The manager actively upgraded the portfolio, adding AI exposure via Nebius and Arm while trimming after strong runs. Energy positions weakened as Middle East tensions eased. Key risk is whether elevated AI stock valuations can be justified by upcoming earnings.

Mairs & Power Balanced Fund returned 6.14% in H1 2026, slightly trailing its benchmark as markets broadened beyond megacaps on strong earnings. The fund added cybersecurity, waste management, and automation plays while exiting names losing competitive advantage. Managers position as downstream AI beneficiaries rather than chasing cyclical hardware, seeing productivity gains offsetting sticky inflation risks. Disciplined focus on durable franchises at reasonable valuations drives their conviction through volatility.

Staude Capital's discount capture strategy delivered 7.7% gross returns in FY2026 despite 4.7% currency drag. Two successful exits completed in June including 150.7% six-year return on Amedeo Air Four Plus. Portfolio concentrated in closed-end funds with active value realisation mechanisms: TRIG with double-digit dividends and buybacks, HarbourVest implementing major tender offers, and RM Infrastructure in managed wind down returning cash.

Pender Small Cap Opportunities Fund returned 15.4% in the first half of 2026, maintaining its concentrated portfolio of 62 undervalued Canadian small and microcap companies. The fund's catalyst-driven value approach focuses on special situations and deep fundamental analysis to identify businesses trading below intrinsic value. Strong performance continues across software, technology, and industrial holdings, with 12.7% annualized returns since inception.

Markets trade at Dotcom-era valuations while the AI boom mirrors prior technology bubbles with Chinese competition threatening profitability. The manager holds 49% cash and concentrates equity exposure in deeply discounted energy assets trading at five times earnings with high yields. Offshore drillers benefit from industry consolidation while Chinese technology stocks offer value. The defensive positioning preserves capital amid extreme market valuations while maintaining exposure to compelling opportunities.

Bahl & Gaynor maintains their disciplined dividend growth approach despite extreme market whipsaw from Q1 fear to April momentum-driven rally. With market breadth at 30-year lows and only 23% of stocks beating the index, they view quality dividend payers as on sale. Multiple conflicting signals remain unresolved including inflation persistence and policy divergence, reinforcing their focus on resilient portfolios built for long-term compounding.

Atai Capital delivered 6.6% net returns in Q1 2026, outperforming the S&P 500 by over 1000 basis points. BK Technologies, the largest position, unveiled a compelling Vision 2030 framework targeting organic revenue growth of 15%+ annually and nearly 4x EPS expansion through disciplined execution and market share gains in public safety. AstroNova was acquired at $29/share. Elevated cash reflects scarce compelling opportunities, not market timing.

India-focused fund maintained discipline through Q1 2026 geopolitical shock, avoiding reactive trading despite oil-driven inflation, rupee weakness, and remittance risks. Strategic IT sector avoidance based on extensive AI disruption research protected capital as traditional service providers face structural headwinds. After 18-24 months of market correction resetting valuations and expectations, outlook shifts positive with strong earnings growth intact and attractive entry points emerging.

Baumann Capital added MTU Aero Engines at 16x earnings, gaining exposure to aerospace's durable economics: contractual 20-40 year revenue streams, extreme barriers to entry, and secular growth from global air travel penetration. Near-term uncertainty from partner Pratt & Whitney's engine recall and Airbus's next-generation aircraft decision creates the opportunity. Position sized at 7% reflects moderate conviction pending further clarity on dual-source engine selection maintaining MTU's program participation.

Bireme Capital has delivered 20.9% annualized returns over 10 years through contrarian value investing but has shifted to 92% net long internationally and -25% net short US equities. The managers view US markets at historical extremes with speculative fever reaching dangerous levels, while finding compelling opportunities in Japanese software at single-digit PE multiples with strong growth characteristics.

Turtle Creek posted -4.8% in Q1 amid AI-driven market volatility but used weakness to add to conviction positions including Premium Brands and Colliers. Strong earnings from 40% of holdings and meaningful buyback activity support the thesis. Two quality additions in healthcare services demonstrate ongoing portfolio upgrading toward higher-quality mid-cap businesses.

Iran conflict disrupted energy markets with oil surging and tech stocks declining on AI concerns, but underlying fundamentals remain strong. Historical analysis suggests geopolitical shocks have temporary market impacts. Unlike 2022's demand-driven inflation, current risks are supply-based with Fed likely holding rates. Earnings growth continues with broadening market leadership supporting constructive long-term outlook despite elevated tail risks.

RGA rebuilt its research process around AI tools in Q1 2026, expanding monitoring capacity without diluting attention quality. The manager is increasingly bullish on AWS as a beneficiary of AI workflow adoption, focusing on profit pools and platforms rather than infrastructure suppliers. They built a SaaS Risk Tracker that identified two new purchases while helping avoid value traps, and see meaningful opportunities in disciplined active management amid market dispersion.

Elliott argues Northern Star Resources owns world-class gold assets in Australia and Alaska that are deeply undervalued due to operational failures and leadership issues. The company has underperformed peers by 203% over three years despite possessing what could become the second largest Tier-1 gold mine globally. Elliott demands immediate strategic review including potential sale, citing strong M&A environment and significant buyer interest, or alternatively a comprehensive operational turnaround with new leadership.

AI infrastructure drives massive returns for Korean semiconductor leaders Samsung and SK Hynix, but retail speculation reaches dangerous levels with unprecedented margin debt. Anthropic and Meta demonstrate AI monetization success while structural risks emerge in private credit-backed insurance products that could create doom loops during market downturns.