Voya Investment Management, an investment management company, released its first-quarter 2026 investor letter for its “Voya MI Dynamic Small Cap Fund.” It is an actively managed US Small Cap core equity strategy. A copy of the letter can be downloaded here. The first quarter of 2026 was challenging for the equity markets as easing inflation was overshadowed by increased geopolitical risks and uncertainty surrounding policy. Large-cap technology and software stocks struggled due to worries about the impact of AI disruptions, while value stocks showed resilience even as their growth counterparts experienced declines. Overall, the markets remained range-bound amidst volatility throughout the quarter. The Fund underperformed its benchmark, the Russell 2000 Index (the Index), on a net asset value (NAV) basis in the quarter, driven by stock selection issues. There is a noticeable shift towards more defensive and quality-focused sectors, highlighting the importance of selective positioning and active risk management in this more volatile landscape. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Voya MI Dynamic Small Cap Fund highlighted Kohl’s Corporation (NYSE:KSS). Kohl’s Corporation (NYSE:KSS) is a US-based department store retail chain that offers apparel, footwear, accessories, beauty products, and home products. On June 3, 2026, Kohl’s Corporation (NYSE:KSS) closed at $15.52 per share. One-month return of Kohl’s Corporation (NYSE:KSS) was 8.15%, and its shares gained 81.10% over the past 52 weeks. Kohl’s Corporation (NYSE:KSS) has a market capitalization of $1.74 billion.
Voya MI Dynamic Small Cap Fund stated the following regarding Kohl’s Corporation (NYSE:KSS) in its Q1 2026 investor letter:
“The overweight to Kohl’s Corporation (NYSE:KSS) had a negative impact to performance. Driving the overweight was the model’s neutral view of the stock combined with its attractive factor exposures which helped balance risk in the overall portfolio. The stock fell as persistent negative comparable sales, cautious guidance and continued share loss to off-price and other channels reinforced skepticism about a near-term sales inflection in a choppy low-income consumer environment.”
Kohl’s Corporation (NYSE:KSS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 34 hedge fund portfolios held Kohl’s Corporation (NYSE:KSS) at the end of the first quarter, up from 33 in the previous quarter. While we acknowledge the risk and potential of Kohl’s Corporation (NYSE:KSS) 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 Kohl’s Corporation (NYSE:KSS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Kohl’s Corporation (NYSE:KSS) and shared the list of most undervalued retail stocks to invest in. 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.
