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 stocks such as Mueller Water Products, Inc. (NYSE:MWA). Headquartered in Atlanta, Georgia, Mueller Water Products, Inc. (NYSE:MWA) is an infrastructure company that produces and markets products and services for the transmission, distribution, and measurement of water. On June 3, 2026, Mueller Water Products, Inc. (NYSE:MWA) closed at $25.18 per share. One-month return of Mueller Water Products, Inc. (NYSE:MWA) was -5.95%, and its shares gained 3.78% over the past 52 weeks. Mueller Water Products, Inc. (NYSE:MWA) has a market capitalization of $3.94 billion.
Voya MI Dynamic Small Cap Fund stated the following regarding Mueller Water Products, Inc. (NYSE:MWA) in its Q1 2026 investor letter:
“The overweight to Mueller Water Products, Inc. (NYSE:MWA) was driven by the ML models positive view of its volatility and valuation features. Mueller Water Products is a leading North American supplier of valves, hydrants and smart-water technologies, leveraged to municipal and utility investment in aging water infrastructure. The stock rose following a strong fiscal 1Q26 print and a guidance raise, as investors rewarded better-than-expected execution, margin expansion from the new brass foundry and resilient demand across core product lines.”
Mueller Water Products, Inc. (NYSE:MWA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held Mueller Water Products, Inc. (NYSE:MWA) at the end of the first quarter, the same as in the previous quarter. Mueller Water Products, Inc.’s (NYSE:MWA) consolidated net sales increased 5.5% in second quarter of fiscal 2026 to a new record of $384.4 million. While we acknowledge the risk and potential of Mueller Water Products, Inc. (NYSE:MWA) 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 Mueller Water Products, Inc. (NYSE:MWA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Mueller Water Products, Inc. (NYSE:MWA) and shared the list of best water management stocks to buy. 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.
