Iran war and Strait of Hormuz closure disrupted 20% of global oil production, exposing dangerous energy supply fragility. Manager expects major investment cycle in hydrocarbon exploration similar to 1970s oil crises, with capital spending likely exceeding 2014 peaks as countries reduce single-source dependency through both traditional and renewable energy investments.

Strong Q1 performance driven by defense and electrification themes. Korean defense stocks and power infrastructure companies led gains amid geopolitical tensions and AI-driven electricity demand. Added positions in European defense, AI connectivity, and Hong Kong real estate while trimming insurance exposure. Outlook favors international markets with structural investment themes over US multiple expansion.

Cedar Creek delivered 6.8% in Q1 while indices fell on Middle East concerns. Portfolio trades at 7.2x forward earnings with strong positions in undervalued community banks and defense-exposed Solitron Devices. Expert market exposure at 30% provides unique opportunities. Cash being deployed into attractive microcap value plays.

Fund positioned for AI infrastructure growth and energy market opportunities amid volatile Q1 2026. Geopolitical tensions drove energy winners Chevron and Williams while creating headwinds for tech holdings. Analog semiconductor recovery underway. Despite inflation fears and potential Fed policy reversals, managers maintain long-term conviction in quality companies with strong fundamentals trading at reasonable valuations.

John Hancock Bond Fund underperformed in Q1 2026 as Middle East conflict sparked commodity price increases and inflation concerns, reducing Fed easing prospects. Asset allocation detracted from performance, particularly corporate bond overweights. Managers repositioned toward securitized credit while maintaining conviction that market conditions will normalize and higher yields will drive fixed-income demand.

Amazon demonstrates strong momentum across e-commerce, AWS, and AI with $717 billion revenue and significant investments in transformational technologies. AWS leads AI adoption with $15 billion revenue run rate while custom chips provide competitive advantages. Massive $200 billion capex program supports long-term growth despite near-term cash flow pressure. Multiple catalysts including satellite broadband launch position Amazon for continued expansion.

Hotchkis & Wiley's small cap value fund outperformed in Q1 2026 as geopolitical turmoil drove oil prices up 100%, benefiting their overweight energy position. Small caps outperformed large caps despite disruption, with valuations remaining attractive at 85% of large cap P/E ratios. The team sees improving market focus on fundamentals favoring their disciplined value approach.

Balanced fund posted -0.59% in Q1 as geopolitical turmoil and AI bubble concerns weighed on markets. Energy overweights and tech stock picking drove equity outperformance while fixed-income lagged on yield curve positioning. Managers see more reasonable valuations post-downturn creating opportunities for active security selection despite ongoing geopolitical and monetary policy uncertainties.

BBH Intermediate Municipal Bond Fund outperformed benchmarks by 50 basis points in Q1 2026 despite Middle East conflict driving yields higher and creating inflation concerns. The team actively added housing bonds and other opportunities with attractive spreads while managing credit risks from federal legislation and private credit stress. Disciplined approach positions fund to capitalize on market dislocations.

Baillie Gifford sees opportunity in current market stress as AI fears create valuation dislocations. The fund's holdings show 20% revenue growth yet trade at cheapest relative valuations since 2015. They believe companies controlling workflow infrastructure will benefit from AI adoption rather than be disrupted, maintaining conviction in businesses positioned at critical control points while others focus on interface-level concerns.

Baillie Gifford positions their International Alpha Fund as better than ever despite recent underperformance, with the lowest valuation premium since 2010. They've actively adapted to structural shifts by adding exposure to copper miners, energy companies, and AI enablers while exiting software names facing disruption. The fund benefits from faster growth, attractive valuations, and enhanced resilience heading into a complex global environment.

Mid-cap growth fund outperformed benchmark despite negative returns as value dominated growth during Q1 2026. Strong aerospace, defense, and biotech holdings offset broader market pressures from geopolitical tensions and policy uncertainty. Team actively repositioned portfolio with new AI infrastructure plays while maintaining conviction in company-specific growth drivers over macro headwinds.

Small-cap growth fund outperformed benchmark despite negative returns as geopolitical tensions favored commodity sectors over technology. Strong semiconductor stock selection offset energy underweight. Added AI infrastructure and defense positions while harvesting mature holdings. Management confident in company-specific profit cycles across technology, industrials and health care power alleys despite macro headwinds.

Angel Oak High Yield ETF outperformed in Q1 2026 despite Iran conflict volatility, with energy sector driving gains from rising commodity prices. Fund emphasizes quality corporate issuers while trimming securitized credit exposure amid geopolitical uncertainty and inflation risks from sustained energy price increases.

Angel Oak Multi-Strategy Income Fund outperformed by 105bps in Q1 2026 through concentrated securitized credit exposure, particularly 44% allocation to non-agency RMBS supported by strong housing fundamentals. Fund avoided stretched corporate credit valuations while navigating Iran conflict volatility. Management expects mortgage basis outperformance in Q2 with fixed income positioned for stronger returns through 2026.

Steyn Capital delivered 1.53% net returns in Q1 2026 despite geopolitical turmoil from Iran conflict. Strong performance from AECI and Glencore offset weakness in Naspers/Prosus positions. Manager reduced exposure amid Strait of Hormuz closure uncertainty while maintaining conviction that South African and emerging market equities remain undervalued for long-term outperformance.

Steyn Capital's South African long/short fund delivered 0.45% net returns in Q1 2026, outperforming the JSE ALSI's 10.45% decline during Iran conflict volatility. Strong performance from AECI, Glencore, and Pan African Resources offset Naspers/Prosus weakness. The fund reduced exposure amid geopolitical uncertainty while maintaining conviction that South African equities remain undervalued for long-term outperformance.

Madison Small Cap Fund managers capitalized on AI disruption fears to invest in quality software and healthcare companies at attractive valuations. Strong semiconductor performance offset software weakness. New positions in medical devices, energy, and construction software reflect opportunistic approach. Expect continued volatility from geopolitical tensions and elections but see environment favoring quality over speculation.

Thornburg Investment Income Builder delivered +9.93% in Q1 2026, outperforming benchmarks through exposure to dividend-paying companies with resilient businesses. The globally diversified portfolio emphasizes telecommunications, financials, and technology, with a 3.5% weighted average dividend yield. Despite macro headwinds, managers remain optimistic about return potential given attractive valuations and strong business fundamentals.

Madison Large Cap outperformed the S&P 500 in Q1 2026 despite sector allocation headwinds, as AI disruption fears drove market rotation from software to physical economy companies. Strong semiconductor and industrial holdings offset weakness in AI-vulnerable names. New positions in Meta and Salesforce reflect opportunistic buying of quality companies trading at attractive valuations due to AI concerns.

Madison Mid Cap declined 4.34% in Q1 as AI disruption fears hit software holdings while commodity-focused sectors led. Managers opportunistically added AI-resilient software names Tyler Technologies and Bentley Systems, viewing current weakness as attractive entry points. Strong performance from MKS, Ross Stores, and Teledyne offset software sector headwinds. Portfolio remains concentrated in high-quality businesses with durable competitive advantages.

Iran war volatility created attractive entry points across defensive themes. Value outperformed growth as energy prices spiked, but technology multiples compressed to attractive levels. Defense spending and REIT M&A remain compelling themes. Team upgraded portfolios during volatility while maintaining balanced positioning. Mid-single-digit returns likely for 2026 given geopolitical uncertainty, but strong earnings outlook intact.

Iran conflict drove Q1 volatility but Titan's regional portfolio restructuring delivered outperformance. Energy and infrastructure holdings led gains while AI positions faced selective pressure. Oil above $100 reignited inflation fears, but portfolios proved resilient through diversification changes. Key question ahead is conflict duration - resolution supports stability while prolongation risks further inflation pressure.

Volatile Q1 2026 saw small caps outperform as investors rotated from AI-heavy Magnificent 7 to HALO stocks amid Iran conflict oil shock. Energy led while SaaS faced AI disruption fears. Lower quality continued outperforming but high-debt names struggled. Kayne Anderson Rudnick maintains quality focus, expecting fundamentals to eventually drive performance despite current headwinds from energy underweight and software volatility.

Polaris International outperformed by 6+ percentage points as geopolitical crisis reshaped markets. Energy and materials led gains from commodity disruptions while AI created both opportunities in memory chips and disruption fears in services. Manager sees current volatility validating international diversification thesis as U.S.-only strategies lose appeal.

Parnassus Value Equity Fund underperformed in Q1 2026 due to Energy sector avoidance and select Health Care holdings. The fund maintains quality-focused positioning across defensive value and secular themes, with overweights in Financials and Technology. Value continued outperforming growth amid geopolitical uncertainty and AI disruption fears, supporting the fund's long-term quality-anchored approach.

Magellan Global Opportunities underperformed in Q1 2026 due to AI disruption fears and Middle East energy crisis. Taiwan Semiconductor and ASML benefited from AI chip demand while Microsoft and SAP suffered from software concerns. The manager sees current volatility creating attractive entry points for quality companies with strong competitive positions.

Saga Partners experienced a 23% drawdown in Q1 2026 but maintains long-term outperformance since inception. The manager views current market pessimism around holdings like The Trade Desk as creating attractive opportunities, arguing that AI concerns are overblown and competitive advantages remain intact. He expects current holdings to compound capital attractively over the long term despite short-term volatility.

Magellan Global Opportunities Fund fell 11.0% in Q1 2026 as AI disruption fears and Middle East conflict drove energy prices up 70% and created stagflationary pressures. Semiconductor names like TSMC and ASML outperformed on AI chip demand while software stocks struggled. The manager sees compelling opportunities emerging from the correction in high-quality names.

RIT delivered resilient March performance, declining 1.9% while capturing only 33% of ACWI downside during Middle East geopolitical tensions. Private investments drove positive returns with key holdings showing strong developments. Reduced exposure ahead of tensions positions the fund to deploy capital on further weakness in quoted equity markets.

Ameliora navigated Q1 2026 geopolitical crisis with defensive positioning as Middle East conflict drove oil prices up 60% and equity markets negative. Their energy infrastructure, European financials, gold miners, and defense themes showed resilience. Despite acknowledging recession risks from potential $200 oil, they expect diplomatic resolution and maintain neutral equity stance given strong corporate profit outlook.

Polaris outperformed significantly in Q1 2026 as geopolitical shocks from the Iran war and Strait of Hormuz closure created sector rotations favoring energy and materials over growth. The manager's global diversification strategy is positioned to benefit from the growing recognition that U.S.-only investing is no longer optimal, with selective opportunities emerging from volatility-driven dislocations.

Middle East conflict has created 9% market pullback, but historical analysis shows geopolitical shocks typically recover within twelve months. Sandhill is using volatility to upgrade portfolios, initiating Texas Instruments position as semiconductor cycle recovers. AI transformation continues creating opportunities in indiscriminate selling. Fixed income providing stability while fundamentals ultimately drive long-term returns despite headline noise.

Parnassus underperformed in Q1 on healthcare weakness and energy underweight. The fund is strategically repositioning around AI disruption, keeping semiconductor equipment exposure while exiting software names and adding infrastructure plays. Geopolitical tensions create near-term volatility but strong earnings backdrop supports cautious optimism for 2026 returns driven by fundamentals over multiple expansion.

Parnassus Growth Equity navigated Q1 2026 volatility by actively repositioning around AI themes, benefiting from semiconductor infrastructure demand while managing software disruption risks. The fund outperformed slightly despite broad growth stock weakness, adding quality names like Meta and Oracle while exiting higher-risk software positions. Management maintains constructive outlook on AI-driven secular trends.

Parnassus Mid Cap Growth underperformed in Q1 2026 as managers actively repositioned away from AI disruption risks toward durable business models. Semiconductor infrastructure names outperformed while software faced headwinds. Added eight positions including retail and housing plays anticipating cyclical recovery. Despite macro uncertainty, team remains constructive on broadening growth beyond AI creating selective opportunities.

Lyrical's value strategy underperformed in 1Q26 despite strong earnings growth from 92% of holdings, as valuation compression offset fundamental gains. Portfolio trades at attractive 11.3x P/E with 10.9% historical growth rates exceeding S&P 500 by 4+ points and lower economic sensitivity.

LHC Capital's software-focused fund fell 23.8% as AI disruption fears triggered indiscriminate selling across the sector. Despite strong operational results from holdings like Wisetech and Pro Medicus, markets questioned software terminal values. Management argues their mission-critical systems with high switching costs will benefit from AI adoption and has increased conviction positions at attractive prices.

Ariel Appreciation Fund gained 1.14% in a volatile Q1 2026 marked by Middle East conflict and inflation concerns. AI infrastructure beneficiaries Generac and Keysight led performance while consumer-facing Mattel and KKR detracted. The fund maintains its patient, long-term value discipline focused on high-quality businesses trading below intrinsic value, emphasizing fundamentals over macro forecasting amid rising recession risks.

Ariel Small Cap Value returned +0.92% net in Q1 2026, underperforming benchmarks amid Middle East conflict-driven volatility. Top contributors Generac and Lindblad benefited from data center demand and cruise recovery respectively, while Norwegian Cruise Line and Mattel detracted. Manager maintains cautious 2026 outlook citing recession risks but emphasizes long-term discipline in quality companies.

Ariel International Fund's value approach targets misunderstood international franchises, declining 2.93% in volatile Q1 2026. Strong performers included Orange SA and SUMCO Corporation, while the team added nine new positions including Bayer AG and automation leader Daifuku. Despite near-term uncertainty from geopolitical tensions and stagflation risks, the managers see opportunities emerging outside the U.S. where valuations appear more balanced.

Ariel Global Fund's value-focused approach delivered relative outperformance in volatile Q1 2026 markets. Strong semiconductor and logistics positions offset solar and China headwinds. Ten new positions including Bayer turnaround story and MediaTek AI exposure reflect disciplined opportunistic deployment. Geopolitical tensions and stagflation risks persist, but broadening market leadership and attractive non-U.S. valuations create selective opportunities for patient value investors.

Meridian Hedged Equity outperformed during Q1 2026's geopolitical volatility, gaining 0.08% versus the S&P 500's -4.33% decline. Energy holdings like Chevron benefited from oil price surges while technology positions faced rotation pressure despite strong fundamentals. The fund's hedged approach and focus on high-quality companies with strong balance sheets proved effective in managing downside risk during the uncertain environment.

Geopolitical shocks drove oil from $72 to $100, triggering inflation concerns and equity market declines. A sharp style rotation favored value over growth and small-caps over large-caps. Fixed income provided stability while diversification proved essential. Ongoing geopolitical risks and sticky inflation suggest continued volatility, but dispersion is creating opportunities for balanced portfolios.

Meridian Small Cap Growth Fund declined 8.37% in Q1 2026, underperforming on healthcare allocation headwinds amid Iran conflict and trade tensions. Software holdings pressured by AI fears while tungsten producer Almonty surged on Chinese export restrictions. Manager maintains quality-focused approach, targeting businesses with sustainable advantages positioned to navigate geopolitical uncertainty and benefit from AI infrastructure spending.