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Moerus Worldwide Fund lags benchmarks in Q2 on IT and energy moves
The fund returned 0.14% in Q2 2026 versus 14.9% for the MSCI ACWI, with limited IT exposure and weaker energy performance cited as key drivers.
Moerus Capital Management LLC, through its Moerus Worldwide Fund, reported results for the second quarter of 2026 in an investor letter, describing a highly bifurcated market where AI and technology outperformed while more traditional, value areas lagged. According to the letter, the Fund’s Institutional Class returned 0.14% in Q2 2026, compared with 14.49% for the MSCI ACWI ex USA and 14.93% for the MSCI ACWI. On a year-to-date basis, the Fund’s first-half return was 5.37%, compared with 13.69% for the MSCI ACWI ex USA and 11.25% for the MSCI ACWI.
Moerus said the relative underperformance was driven primarily by the Fund’s limited exposure to Information Technology, as semiconductor and AI-related stocks rallied sharply. It also pointed to a pullback in its Energy holdings as oil prices declined, although it added that energy-related investments helped during the first half.
Looking ahead, Moerus said it sees the large gap between expensive AI-focused areas and neglected parts of the market as an opportunity, reiterating its long-term deep-value approach that targets unpopular businesses and assets traded at discounts, using volatility to identify potential investments. The letter also highlighted Tidewater Inc. as one of the Fund’s top positive contributors during the first half of 2026, describing the offshore supply vessel operator’s role in supporting the offshore energy industry.