Third Avenue's small-cap value strategy delivered strong Q1 outperformance driven by energy disruption beneficiaries and successful M&A exits. The fund capitalized on AI-driven market dispersion to initiate new positions in cybersecurity and staffing while maintaining focus on contrarian opportunities. Small-caps remain historically cheap versus large-caps despite recent strength, supporting continued active strategy advantages.

Technology fund pivoted from software to physical AI enablers amid disruption concerns. Reduced software exposure to 11% while adding Japanese automation, defense, and fiber optic companies. Semiconductor holdings performed well with TSMC guiding strong AI growth. Iran conflict caused volatility but created better entry points for quality infrastructure plays.

Asia Fund matched index with -3.8% return as Iran conflict derailed strong start. Technology holdings led by semiconductors delivered exceptional gains on AI demand, with TSMC guiding 50%+ AI revenue growth. Manager trimmed positions to take profits while maintaining exposure to structural demand. Despite energy price volatility, finding compelling opportunities across sectors at attractive valuations.

Consumer brands fund fell 15% as Iran conflict and rate pressures crushed discretionary spending sentiment. Core holdings like Galderma and Games Workshop grew profits 25-45% despite share price weakness. Market pricing brands like 2008 crisis despite healthy fundamentals. Manager sees sentiment-driven mispricing creating opportunities in quality businesses with pricing power now trading at attractive valuations.

White Brook Capital sees a challenging macro environment from geopolitical tensions driving higher inflation and delayed rate cuts, while AI adoption creates uncertainty. The fund focuses on undervalued small-cap healthcare and industrial companies trading at significant discounts, including ICON after a revenue restatement and S&P Global purchased during market volatility, expecting meaningful contributions in 2026.

Fund declined 13.3% as Iran war and AI disruption fears drove indiscriminate selling of quality businesses. Market oversimplified complex risks, creating binary winner-loser classifications while underlying company fundamentals remained strong. Management used volatility to trim overvalued positions and add to undervalued quality businesses, maintaining conviction that current pessimism creates compelling long-term opportunities for patient investors.

Third Avenue Value Fund delivered 7.28% returns in Q1 2026, significantly outperforming markets as energy holdings surged amid Iran conflict disrupting global oil flows. Manager Fine maintains contrarian value approach, buying undervalued, well-capitalized businesses facing headwinds. Fund expects lasting energy security focus to benefit offshore drilling companies while continuing to find opportunities in market dislocations.

RS Large Cap Value underperformed in Q1 2026 as geopolitical tensions shifted market leadership from growth to value. Energy holdings drove outperformance while technology selections detracted. The team maintains focus on quality businesses with improving ROIC, positioned defensively for continued volatility while ready to capitalize on market dislocations.

NCG's SMID Cap strategy outperformed significantly in 1Q26, driven by AI infrastructure, defense, and critical minerals exposure. The firm sees compelling small cap opportunities with positive earnings momentum, attractive valuations versus large caps, and supportive Fed policy. Active portfolio management added 11 new positions while maintaining focus on high-quality growth businesses with durable competitive advantages.

Praetorian returned 16.44% in Q1 2026, positioned for an inflationary multipolar world with elevated volatility. Core holdings in emerging markets, refiners, precious metals, and commodities trading benefit from Dollar weakness and structural disruptions. Manager maintains cautious positioning despite strong performance, awaiting clarity on Hormuz situation before increasing exposures.

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.

NCG's Micro Cap strategy outperformed in 1Q26 driven by AI infrastructure, defense, and critical minerals exposure. The firm added 12 new positions while maintaining focus on high-quality growth businesses. Small cap fundamentals are improving with positive earnings growth expected to accelerate in 2026, supported by attractive valuations and Fed easing.

Pzena's international value strategy outperformed in Q1 2026, benefiting from energy sector strength amid Middle East tensions while initiating positions in discounted European recovery stories. AI disruption fears created opportunities in oversold IT services names. The portfolio remains focused on profit recovery businesses, particularly in Europe, while avoiding overvalued technology stocks despite recent selloffs.

NCG's large cap strategy fell 10.16% in Q1 amid geopolitical tensions and mega-cap growth scrutiny. AI infrastructure and defense holdings outperformed while software faced pressure from AI disruption concerns. The manager reduced software exposure and maintains conviction in market broadening favoring high-quality growth businesses with durable competitive advantages over mega-cap concentration.

Baird's SMID-cap growth strategy underperformed in Q1 2026 amid geopolitical volatility, declining 4.8% versus benchmark's 3.5%. Technology outperformed through semiconductor additions while industrials benefited from aerospace and AI infrastructure exposure. Active portfolio management included exiting software, adding semiconductors, and initiating new positions across industrials and healthcare. Portfolio remains well-positioned for opportunistic deployment during volatile periods.

California high-yield municipal fund outperformed despite rate-driven decline, benefiting from sector allocation and security selection. Managers maintain cautious stance given tight valuations, favoring seasoned credits with financial flexibility. Economic outlook modestly tempered by energy shocks but expect 2% growth. Target attractive value in energy prepay, multifamily housing, and development districts.

Geopolitical oil supply shocks drove bond yields higher in Q1, erasing Fed rate cut expectations but improving fixed-income entry points. Unlike 2022's overheating economy, current cooling inflation and positive real yields provide more contained risk. The manager emphasizes quality positioning while expecting dynamic opportunities ahead, particularly in AI-driven technology security selection.

L1 Capital navigated Iran war volatility by rotating from outperforming energy into discounted quality names across gold, copper, and construction materials. The fund views current market dislocations as creating exceptional medium-term opportunities, with the portfolio trading at attractive 9x forward P/E while maintaining exposure to structural electrification and infrastructure themes.

Mondrian's international value strategy outperformed in volatile Q1 2026, gaining 0.5% versus benchmark's -1.2% decline. Middle East tensions drove energy leadership while AI themes supported data center exposure through Panasonic. Italian utility Snam provided defensive stability. Portfolio maintains disciplined value approach with attractive 14.9x P/E and 3.5% yield across 51 developed market holdings.

AI disruption drove extreme market volatility in Q1 2026, creating the widest price dispersion since 2020. Ironvine capitalized on the bifurcation, maintaining conviction in semiconductor enablers while avoiding clear AI threats. Their largest holding Amazon is well-positioned through AWS despite advertising business concerns. Quality franchises now trade at decade-low valuations, creating compelling opportunities.

Fund gained 13.1% in March through macro-first positioning on Iran conflict with oil exposure and equity hedges. AI developments accelerate with supply chain shortages creating opportunities. Tension exists between geopolitical risks and AI growth conviction. Fund maintains balanced approach, prepared for significant adjustments as Iran situation evolves.

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.

Templeton & Phillips exploited Q1 geopolitical volatility to purchase quality companies at discounted valuations. Key additions include Canadian National Railway benefiting from LNG supply disruptions and e.l.f. Beauty positioned for consumer trade-down trends. Small-cap valuations present exceptional opportunities with Russell 2000 trading at historic discounts to large caps.

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.

Enhanced Yield Fund delivered 0.7% returns despite bond market volatility from Middle East conflict. Manager positioned in fixed rate bonds believing rate hike expectations excessive, initiated new positions in Telstra and SA Power at 5-6.25% yields. Expects continued volatility but views current rate expectations as unsustainable given economic pressures.

PM Capital's Global Companies Fund fell 4.6% in Q1 2026 amid AI disruption, private credit concerns, and Iran war impacts. The fund benefited from copper exposure with Freeport-McMoRan and Grupo México rising 16% and 13% respectively on record copper prices. European banks declined on geopolitical risk but offer attractive valuations below 9x forward P/E.

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.

Maran Partners declined 2.3% in Q1 amid market volatility from AI disruption fears and geopolitical events. The fund used conservative positioning and cash reserves to opportunistically deploy capital, finding value in dislocated names. Special situations continue delivering strong risk-adjusted returns with meaningful progress across multiple positions. Long-term focus on market inefficiencies remains unchanged.

AI disruption hysteria created once-in-a-decade opportunity to buy quality businesses at $0.50 on the dollar. Manager sold fully valued positions to purchase deeply discounted enterprise software leaders and alternative asset managers. Believes incumbent platforms like SAP and ServiceNow will benefit from AI integration rather than be disrupted due to embedded customer relationships and mission-critical nature.

Claret sees current AI valuations mirroring 1999 dot-com bubble extremes while positioning defensively for normalized interest rate environment. Strategy shifts from momentum-driven equities toward credit and fixed income, where competitive yields no longer require equity multiple expansion. Geopolitical tensions create temporary volatility but historical precedent suggests disciplined value investing will outperform in this new era.

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.

Renaissance's large-cap growth strategy navigated Q1 volatility by capitalizing on AI infrastructure demand while rotating away from software disruption risks. Strong performance from data center and semiconductor equipment names offset weakness in cloud and software stocks. The Iran War drove oil prices up 50%, creating inflation concerns, but the manager sees opportunities emerging from the first meaningful market decline in years.

abrdn High Income Opportunities Fund outperformed its benchmark despite negative returns, benefiting from gaming sector recovery and energy strength amid geopolitical tensions. Middle East conflicts drove oil prices higher while building materials and cable companies detracted. The portfolio has selectively de-risked while maintaining focus on operationally flexible issuers with strong balance sheets.

Small cap fund gained 1.13% in volatile Q1 2026, benefiting from data center growth and energy price rises amid Middle East tensions. Added nuclear and industrial positions while facing AI disruption headwinds. Despite macro challenges from Iran war and tariff uncertainty, manager remains optimistic on secular trends including infrastructure investment and supply chain reshoring creating long-term opportunities.

Fund rotated from cyclical industrials to defensive growth themes including defense, infrastructure, mining, and healthcare amid Middle East geopolitical tensions. New positions include defense contractor Avon Technologies and infrastructure provider Ventia. Manager focuses on high-quality businesses with strong balance sheets and structural growth tailwinds while monitoring valuations in higher-for-longer rate environment.

abrdn Emerging Markets Fund navigated volatile Q1 2026 with early AI and electrification gains offset by March geopolitical sell-off. Taiwan tech and materials outperformed while China and India lagged. Manager maintains focus on high-quality companies with structural growth drivers, adding energy exposure for balance while remaining constructive on longer-term EM opportunities despite near-term headwinds.

Upslope delivered +8.6% in Q1 by capitalizing on geopolitical volatility through concentrated long/short positioning. The manager added defensive-plus European businesses and exited fully valued positions, expecting continued macro volatility to create opportunities. Strong performance from defense, consulting, and consumer holdings offset modest detractors, with portfolio positioned for ongoing volatility-driven opportunities.

BNY Mellon Core Plus underperformed in Q1 2026 as Iran war drove oil above $100 and forced Fed to revise inflation forecasts higher. Duration positioning hurt performance while ABS and CLO overweights helped. Manager increased credit exposure on improved valuations and expects Fed to look through energy inflation if contained.

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.

Small cap manager underperformed in Q1 2026 despite solid company fundamentals as AI disruption fears pressured software holdings and energy strength hurt relative performance. High-quality small caps trade at historically low valuations following multiple compression. Defense and aerospace holdings benefited from strong order growth. Manager maintains focus on durable businesses while selectively reducing software exposure.

Brandes Small Cap Value Fund outperformed significantly in Q1 2026 with 8.18% returns versus 0.89% for Russell 2000. Industrials and consumer staples drove performance while technology holdings faced AI disruption concerns. Management actively rebalanced the portfolio and remains optimistic about value opportunities in small-cap stocks with strong fundamentals.

Harbor Capital Appreciation Fund declined 10.94% in Q1 2026 as geopolitical tensions and energy inflation drove rotation from growth stocks. AI and tech names faced multiple compression despite adding quality positions in Palantir, Cloudflare, and Airbnb. Corporate fundamentals remain resilient, supporting the fund's focus on high-quality growth companies with enduring competitive advantages.

Halvio delivered 14% returns in Q1 2026 through concentrated microcap value investing, avoiding tech selloffs while benefiting from energy exposure. New position FP Newspapers trades at 2x EBITDA with hidden real estate assets. Manager sees abundant small cap opportunities and is expanding into Singapore markets while maintaining focus on illiquid, undervalued companies with strong balance sheets.

Fund underperformed during Iran War-driven oil shock that sent crude up 60% while AI bubble fears and tariff uncertainty pressured markets. Energy holdings benefited from supply disruption while tech positions faced AI disruption concerns. Manager maintains quality-focused approach targeting companies with strong balance sheets and pricing power to navigate prolonged uncertainty periods.

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.

Bronte's quality minus junk strategy faced Q1 headwinds as geopolitical energy shocks hurt European and Asian quality holdings, though the short book provided effective hedging. The manager acknowledges valuation mistakes but sees improved positioning with quality premiums compressed and a short portfolio of fundamentally weak companies poised to underperform over time.