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RAM Smid Composite letter points to Vontier after a selloff
The letter says Vontier shares fell after 1Q26 results, even though earnings and revenue were in line, attributing the drop to a modest revenue guidance cut tied to the Teletrac Navman divestiture.
Vontier Corporation is highlighted in Rewey Asset Management's “RAM Smid Composite” investor letter for the second quarter of 2026, with the firm arguing the stock has been punished more than warranted after a sharp decline. Yahoo Finance reports the composite gained 20.1% in the quarter, beating the Russell 2500 Value Total Return Index's 18.5% rise, while year to date it returned 31.2% versus 24.2% for the benchmark.
The letter frames the market backdrop as a rotation toward undervalued small and smid cap stocks, citing Russell 2500 Value strength versus the S&P 500 and the Magnificent 7. Yahoo Finance also notes the firm pointed to moderation in economic growth after first-quarter GDP was revised, while capital markets remained active with IPOs raising $104 billion across 48 deals.
On Vontier, the letter says Rewey initiated a position in the $4.2 billion industrial technology company, which provides fueling equipment, payment systems, and automotive repair tools. It also notes Vontier became independent after a 2020 spin-off from Fortive, and it lists brands including Gilbarco Veeder-Root and Matco.
According to the same investor letter, Vontier shares were trading at $29.00 at quarter-end, below a February high of $42.10, and fell sharply after 1Q26 results. Yahoo Finance reports the firm attributed the drop to an overreaction to a modest reduction in revenue guidance, driven by the announced divestiture of the Teletrac Navman business, while full-year EPS guidance remained unchanged.
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