Victory Capital, overseeing the RS Large Cap Value Strategy, released its Q2 2026 investor letter. A copy of the letter can be downloaded here. The RS Large Cap Value Strategy underperformed the Russell 1000 Value Index in the second quarter of 2026 as unfavorable stock selection and sector allocation weighed on relative performance. U.S. equities remained resilient despite the Iran conflict, elevated inflation, labor market concerns and uncertainty around Federal Reserve leadership, with the S&P 500 gaining 15% and the Russell 1000 Value returning 13.9%. Market leadership broadened beyond the Magnificent Seven toward semiconductor, memory, power and other AI infrastructure beneficiaries, while investors also moved down the cap spectrum, helping the Russell 2000 Value rise 17.2%. Information Technology returned 80.63%, while Energy fell 13.77%; stock selection in Technology and Industrials and an underweight Technology position were key detractors. Looking ahead, the firm remains focused on risk management, valuation discipline and identifying financially strong, out-of-favor or misunderstood companies with capable management, improving ROIC, attractive reinvestment opportunities and share prices below estimated intrinsic value. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, RS Large Cap Value Strategy highlighted MarketAxess Holdings Inc. (NASDAQ:MKTX). MarketAxess Holdings Inc. (NASDAQ:MKTX) operates an electronic trading platform for institutional investor and broker-dealer firms. On July 21, 2026, MarketAxess Holdings Inc. (NASDAQ:MKTX) closed at $112.27 per share. One-month return of MarketAxess Holdings Inc. (NASDAQ:MKTX) was -1.05% and its shares gained -47.06% over the past 52 weeks. MarketAxess Holdings Inc. (NASDAQ:MKTX) has a market capitalization of $3.99 billion with a 52-week trading range between $108.75 – $214.98.
RS Large Cap Value Strategy stated the following regarding MarketAxess Holdings Inc. (NASDAQ:MKTX) in its Q2 2026 investor letter:
“MarketAxess Holdings Inc is a leading electronic trading platform for fixed income securities. MKTX connects institutional investors and broker-dealers for trading across corporate and government bonds. Servicing over 2,100 institutional clients, with nearly 20% market share of US corporate investment grade bond trading, the company has established a strong market position. Shares were under pressure during the quarter over concerns of increased competition and margin pressure. Despite the recent underperformance and broader market concerns, we remain positive on the structural change opportunity taking place under the new CEO and continue to hold the position.”
MarketAxess Holdings Inc. (NASDAQ:MKTX) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held MarketAxess Holdings Inc. (NASDAQ:MKTX) at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of MarketAxess Holdings Inc. (NASDAQ:MKTX) 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 MarketAxess Holdings Inc. (NASDAQ:MKTX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MarketAxess Holdings Inc. (NASDAQ:MKTX) and shared a bullish thesis 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.
Co-Founder and Research Director at Insider Monkey
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.
It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
How could anything be worth that much?
The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.
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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.
In fact, Verge argues this company’s supercheap AI technology should concern rivals.
Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.
Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…
But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.
And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…
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Co-Founder and Research Director at Insider Monkey
My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.
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