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Sycamore Mid Cap Value strategy underperformed in Q2 2026
The fund returned 9.6% net in Q2 2026, lagging the Russell Midcap Value Index’s 13.8% gain, citing stock selection and sector allocation effects.
Sycamore Capital Management, a franchise of Victory Capital Management, said its Sycamore Mid Cap Value Equity Strategy returned 9.6% net in Q2 2026, underperforming the Russell Midcap Value Index, which rose 13.83% over the same period, according to its Q2 2026 investor letter. The letter attributes the gap to both stock selection and sector allocation. It also notes that small-cap equities outpaced large- and mid-cap equities during the quarter, while market action concentrated in a subset of AI-linked names. Sycamore’s commentary highlights risks including market concentration and the influence of passive investment vehicles, and it urges investors to reconsider their exposure to AI in light of those factors. The firm frames the discussion as a call for cautious evaluation of current holdings given those vulnerabilities. The letter also points to Trimble Inc. as a notable contributor within the strategy’s holdings discussion, saying the shares were pressured despite strong 1Q26 results, including year-over-year improvements in revenue and gross, operating, and EBITDA margins. It adds that Trimble’s full-year guidance implied deceleration for the remainder of 2026, and it references management flagging macro conditions, while providing context that Trimble closed at $56.35 on August 12, 2026, with a market capitalization of $13.14 billion.