Schafer Cullen Capital Management, Inc., an independent investment advisor, released its Q1 2026 investor letter for the “Small Cap Value Equity Strategy.” You can download a copy of the letter here. U.S. equity markets started 2026 with notable volatility due to geopolitical events and shifting macro conditions. The Russell 2000 rose 0.9% for the quarter, with small-cap value outperforming growth. Concerns over AI and its impact on software companies heightened among investors. The Small Cap Value Equity strategy composite returned -1.8% (gross) and -2.0% (net) in the quarter, while the Russell 2000 Value returned 5.0% for the quarter, and the broader Russell 2000 Index gained 0.9%, reflecting strength in small caps. The performance in the quarter was shaped by rising interest rates, widening credit spreads, and geopolitical tensions. Overall, the quarter challenged quality-oriented strategies, yet the firm remains committed to investing in companies with strong balance sheets and sustainable earnings, believing this focus will benefit as market conditions improve. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Schafer Cullen Capital Small Cap Value Equity Strategy highlighted Belden Inc. (NYSE:BDC). Belden Inc. (NYSE:BDC) is a US-based networking, connectivity, and industrial automation solutions company that enables data infrastructure to unlock new possibilities for its customers. On June 1, 2026, Belden Inc. (NYSE:BDC) closed at $103.25 per share. One-month return of Belden Inc. (NYSE:BDC) was -7.82%, and its shares lost 4.72% over the past 52 weeks. Belden Inc. (NYSE:BDC) has a market capitalization of $4.02 billion.
Schafer Cullen Capital Small Cap Value Equity Strategy stated the following regarding Belden Inc. (NYSE:BDC) in its Q1 2026 investor letter:
“Belden Inc. (NYSE:BDC) is a global provider of networking, connectivity, and industrial automation solutions serving mission-critical applications across industrial, enterprise, and infrastructure end markets. The company has been actively transforming its portfolio toward higher-growth, higher-margin businesses through divestitures and targeted reinvestment. This shift, combined with ongoing cost optimization efforts, has driven meaningful improvements in profitability and returns on capital. We believe Belden is well positioned to benefit from secular tailwinds including industrial automation, data infrastructure investment, and increased demand for reliable connectivity, supporting continued earnings growth and margin expansion.”
Belden Inc. (NYSE:BDC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 32 hedge fund portfolios held Belden Inc. (NYSE:BDC) at the end of the first quarter, up from 21 in the previous quarter. Belden Inc.’s (NYSE:BDC) revenue totaled $696 million in Q1 2026, up 11% compared to the prior year, and adjusted EPS came in at $1.77, also up 11% compared to the prior year. While we acknowledge the risk and potential of Belden Inc. (NYSE:BDC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Belden Inc. (NYSE:BDC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Belden Inc. (NYSE:BDC) and shared the list of best hardware stocks to buy for the AI PC revolution. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
