Brandes Small Cap Value Fund’s Q2 2026 Investor Letter

Brandes Investment Partners, an asset management company, released its second-quarter 2026 investor letter for its “Brandes Small Cap Value Fund”.  In Q2 2026, the Fund returned 13.85% (Class I Shares), underperforming the Russell 2000 Index’s 21.49% gain and the Russell 2000 Value Index’s 17.19% rise. However, year-to-date, the fund (Class I Shares) increased by 23.17%, surpassing the 22.57% and 22.99% returns of the indexes, respectively. The second quarter’s performance was mainly driven by holdings in the industrial sector, particularly aerospace and defense, as well as energy. Its underperformance was due to holdings and an underweight position in the information technology sector. The Firm remains optimistic about value stocks, citing their attractive valuations and strong free cash flow generation. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.

A copy of Brandes Small Cap Value Fund’s Q2 2026 investor letter is available to download here.