Sycamore Capital Management, a franchise of Victory Capital Management, released its Q2 2026 investor letter for “Sycamore Mid Cap Value Equity Strategy”. A copy of the letter can be downloaded here. Sycamore Capital’s Mid Cap Value investment team focuses on a bottom-up approach to identify undervalued businesses with growth potential. In Q2 2026, the strategy returned 9.6% (net) underperforming the Russell Midcap Value Index’s 13.83% return, due to both stock selection and sector allocation. Small-cap equities outpaced both large- and mid-cap equities during the second quarter of 2026. While U.S. indices like the S&P 500® Index saw significant gains in the quarter, market dynamics shifted towards a select group of stocks driven by AI-related momentum. The commentary highlights underlying risks, such as market concentration and the influence of passive investment vehicles, reminding investors to reconsider their exposure to AI. Overall, it calls for a cautious evaluation of current investments in light of these risks. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its Q2 2026 investor letter, Sycamore Mid Cap Value Equity Strategy highlighted FTI Consulting, Inc. (NYSE:FCN). Headquartered in Washington, the District of Columbia, FTI Consulting, Inc. (NYSE:FCN) is a business advisory services provider. On August 12, 2026, FTI Consulting, Inc. (NYSE:FCN) closed at $152.68 per share, reflecting a market capitalization of $4.22nyse billion. FTI Consulting, Inc. (NYSE:FCN) posted a one-month return of -8.37%, while its shares lost 9.98% over the past 52 weeks.
Sycamore Mid Cap Value Equity Strategy stated the following regarding FTI Consulting, Inc. (NYSE:FCN) in its Q2 2026 investor letter:
“FTI Consulting, Inc. (NYSE:FCN), a global business advisory firm specializing in economic consulting, financial restructuring, strategic communications, and litigation support, was another top detractor. Shares traded lower after a disappointing 1Q26 release: revenue held up, but EPS came in well below analyst expectations on rising SG&A expenses expected to persist through the rest of 2026. The Economic Consulting segment lost market share in U.S. antitrust consulting, and management indicated a recovery could take multiple quarters. On the positive side, the board authorized an additional $307 million for the repurchase program and reaffirmed full year 2026 guidance. Our thesis for FCN is under review.”
FTI Consulting, Inc. (NYSE:FCN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 25 hedge fund portfolios held FTI Consulting, Inc. (NYSE:FCN) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the risk and potential of FTI Consulting, Inc. (NYSE:FCN) 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 FTI Consulting, Inc. (NYSE:FCN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered FTI Consulting, Inc. (NYSE:FCN) and shared Fiduciary Management Inc.’s insight on the company. In addition, please check out our hedge fund investor letters Q2 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.
