Wasatch Global Investors, an asset management company, released its “Select Strategy” Q2 2026 investor letter. A copy of the letter can be downloaded here. Global small- and mid-cap equities delivered strong returns in the second quarter, primarily driven by enthusiasm surrounding artificial intelligence. Geopolitical tensions between the U.S. and Iran were volatile in the quarter; however, a ceasefire towards the end helped alleviate concerns and positively impacted investor sentiment. The MSCI All Country World Index gained 14.93%, while the Wasatch strategy also experienced gains, although it lagged behind the index due to weaker stock selection in U.S. information technology and financial sectors. The firm focused on investing in high-quality, long-duration growth opportunities that benefit from AI, while also recognizing the potential of non-AI beneficiaries. They believe that fundamentals will eventually recapture investor attention, positioning these holdings for long-term outperformance. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Wasatch Global Select Strategy highlighted RBC Bearings Incorporated (NYSE:RBC) as a notable contributor. RBC Bearings Incorporated (NYSE:RBC) is an industrial company that focuses on manufacturing and marketing engineered precision bearings, components, and systems for aerospace, defense, and industrial markets. On July 28, 2026, RBC Bearings Incorporated (NYSE:RBC) closed at $576.37 per share. One-month return of RBC Bearings Incorporated (NYSE:RBC) was -7.11%, and its shares gained 49.76% over the past 52 weeks. RBC Bearings Incorporated (NYSE:RBC) has a market capitalization of $18.23 billion.
Wasatch Global Select Strategy stated the following regarding RBC Bearings Incorporated (NYSE:RBC) in its Q2 2026 investor update:
“RBC Bearings Incorporated (NYSE:RBC) also contributed. The company manufactures highly engineered precision bearings, components and essential systems and primarily serves the aerospace, defense and diversified industrial markets. Similar to Loar, RBC has also benefited from a rally among aerospace and defense companies. Fundamentals for RBC remain strong, and we continue to like the company’s long-term earnings potential.”
RBC Bearings Incorporated (NYSE:RBC) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge fund portfolios held RBC Bearings Incorporated (NYSE:RBC) at the end of the first quarter, up from 38 in the previous quarter. RBC Bearings Incorporated’s (NYSE:RBC) net sales for the fourth quarter of fiscal 2026 rose by 18.3% year-over-year, reaching $518 million, fueled by ongoing strength in its A&D segment, as well as consistent expansion in its Industrial businesses. While we acknowledge the risk and potential of RBC Bearings Incorporated (NYSE:RBC) 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 RBC Bearings Incorporated (NYSE:RBC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered RBC Bearings Incorporated (NYSE:RBC) and shared Wasatch Long/Short Alpha Fund’s views on the company in the previous quarter. 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.
