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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Weitz Multi Cap Equity Fund 2024 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Weitz Multi Cap Equity Fund)

Primary Source Intelligence • Q2 2024 Letter Analysis

Weitz Multi Cap Equity Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Weitz Multi Cap Equity Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Annualized+10.72%

Positioning StanceNEUTRAL

Market CapAll Cap

GeographyUS

Digest Analysis

Quick Take

"Compared to +3.22% for the Russell 3000 Index. Market performance during the quarter was heavily driven by a concentrated group of six mega-cap technology companies, which accounted for more than 100% of the Russell 3000's positive gains."

Executive Summary

The Weitz Multi Cap Equity Fund Institutional Class returned -3.24% in the second quarter of 2024, compared to +3.22% for the Russell 3000 Index. Year-to-date, the Fund returned +5.44% versus +13.56% for the benchmark. Market performance during the quarter was heavily driven by a concentrated group of six mega-cap technology companies, which accounted for more than 100% of the Russell 3000's positive gains. The Fund benefited from holdings in Alphabet and Meta Platforms, alongside strong contributions from HEICO, Guidewire Software, ACI Worldwide, and Texas Instruments. Perimeter Solutions remained the Fund's top YTD performer. Conversely, detractors included CoStar Group, Liberty Broadband/Charter Communications, Liberty SiriusXM, and LKQ Corp., which faced temporary headwinds from customer uncertainty, product sales deceleration, or weather-related volume drops. The Fund initiated a major new position in Old Dominion Freight Line, capitalizing on cyclical volume weakness in the LTL industry. Overall posture remains constructive with a strict focus on valuation.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

68%

CautiousHigh

Moderate (68%)

The fund demonstrates moderate-high conviction through concentrated positions in named holdings like Alphabet (7.9% weight), Meta (6.4%), and Berkshire Hathaway (6.7%). Managers provide specific thesis explanations for individual positions and make deliberate portfolio adjustments based on valuation. However, the diversified nature of the multi-cap strategy with 20+ positions prevents a higher conviction score.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The managers acknowledge market challenges with mega-cap concentration and note that large-cap strength did not flow through to smaller businesses. However, they maintain a constructive view on their Quality at a Discount framework and believe their holdings are attractively valued.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

The fund made valuation-driven trims to strong performers and exited positions in Live Nation, suggesting a measured approach to risk. They initiated one new position but overall positioning appears cautious given market dynamics.

Capital Deployment

43%

De-riskingDeploying

Net Neutral (43%)

The fund made net reductions through valuation-driven trims of strong performers and exits from Live Nation positions. While they initiated one new position in ODFL and made opportunistic additions to a few names, the overall activity suggests modest de-risking rather than aggressive deployment.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

Managers express confidence in their investment approach and believe current holdings can generate reasonable risk-adjusted returns. They would gladly return to Live Nation at more attractive levels, indicating selective deployment bias.

Language Signal

20%

BearishBullish

Bearish (20%)

Language is balanced with mentions of attractive valuations and business value growth, but also acknowledges challenges, uncertainty, and headwinds. Slightly more constructive than bearish overall.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

Managers acknowledge moderate risks including mega-cap concentration in markets, Fed policy uncertainty, and inflation impacts. They note specific company-level uncertainties around Charter's subscriber impact and CoStar's business development, but risk discussion is not central to the letter.

Opportunity Density

55%

ScarceAbundant

Selective (55%)

The managers found selective opportunities to add to existing positions and initiate one new position in ODFL at an attractive entry price. However, they also trimmed winners for valuation reasons, suggesting a mixed opportunity environment requiring selectivity.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The fund demonstrates a multi-year investment horizon through their Quality at a Discount framework and willingness to hold through short-term volatility. They discuss ODFL's long-term orientation and track record of investing through downturns, and note they would return to Live Nation at better levels, indicating patience for thesis realization over 2-5 years.