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 Expand Energy Corporation (NASDAQ:EXE). Expand Energy Corporation (NASDAQ:EXE) is a US-based independent natural gas producer. On August 12, 2026, Expand Energy Corporation (NASDAQ:EXE) closed at $95.71 per share, reflecting a market capitalization of $22.29 billion. Expand Energy Corporation (NASDAQ:EXE) posted a one‑month return of 7.18%, while its shares lost 0.29% over the past 52 weeks.”
Sycamore Mid Cap Value Equity Strategy stated the following regarding Expand Energy Corporation (NASDAQ:EXE) in its Q2 2026 investor letter:
“Two Energy sector holdings, Devon Energy Corp. (DVN) and Expand Energy Corporation (NASDAQ:EXE), were the quarter’s top detractors. Natural gas producer EXE came under pressure despite a solid 1Q26 release: revenue and earnings beat forecasts and the company repurchased $150 million in shares, but management’s capex guide for the rest of 2026 came in below expectations. Sentiment was further weighed down by the controller’s resignation, which left the CFO covering dual accounting responsibilities in the interim. Despite the recent performance, our theses for both DVN and EXE remain intact.”
Expand Energy Corporation (NASDAQ:EXE) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 81 hedge fund portfolios held Expand Energy Corporation (NASDAQ:EXE) at the end of the first quarter, compared to 94 in the previous quarter. While we acknowledge the risk and potential of Expand Energy Corporation (NASDAQ:EXE) 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 Expand Energy Corporation (NASDAQ:EXE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Expand Energy Corporation (NASDAQ:EXE) and shared a list of firms beating earnings expectations. 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.
