Victory Capital, overseeing the RS Large Cap Value Strategy, released its Q1 2026 investor letter. A copy of the letter can be downloaded here. It’s a value-focused strategy that seeks to invest in solid companies with attractive valuations. Given ongoing market volatility, risk management remains crucial. As patient long-term investors, the firm aims to capitalize on market turmoil and periods of price dislocations. For the three months ending March 31, 2026, the strategy returned 1.08% (gross), 0.95% (net), underperforming the Russell 1000® Value Index, which returned 2.10%. Underperformance stemmed from unfavorable stock selection despite positive sector positioning. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, RS Large Cap Value Strategy highlighted stocks like Mattel, Inc. (NASDAQ:MAT). Mattel, Inc. (NASDAQ:MAT) is a multinational toy and entertainment company specializes in manufactures and markets toys, games, and other products. On April 24, 2026, Mattel, Inc. (NASDAQ:MAT) closed at $14.53 per share. One-month return of Mattel, Inc. (NASDAQ:MAT) was 2.68%, and its shares lost 7.51% over the past 52 weeks. Mattel, Inc. (NASDAQ:MAT) has a market capitalization of $4.39 billion.
RS Large Cap Value Strategy stated the following regarding Mattel, Inc. (NASDAQ:MAT) in its Q1 2026 investor letter:
“Shares of Mattel, Inc. (NASDAQ:MAT, the world’s second-largest toy manufacturer, underperformed this quarter following management’s strategic decision to significantly increase spending in 2026. This investment will temporarily depress margins and bottom-line profitability. While the scale of this spending surprised many investors, our discussions with management have convinced us that this is the correct long-term decision for the business. Our thesis is predicated on Mattel’s ability to effectively monetize its expansive intellectual property through growth beyond the traditional toy market— specifically in digital gaming, entertainment, and brand licensing. These revenue streams are significantly more profitable than traditional toy sales and are expected to drive Return on Invested Capital (ROIC) higher. The increased spending in 2026 is directly tied to accelerating top-line growth within these high-margin categories. We believe these investments will bear fruit in 2027 and beyond, and we maintain our position.”
Mattel, Inc. (NASDAQ:MAT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 36 hedge fund portfolios held Mattel, Inc. (NASDAQ:MAT) at the end of the fourth quarter, up from 34 in the previous quarter. While we acknowledge the risk and potential of Mattel, Inc. (NASDAQ:MAT) 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 Mattel, Inc. (NASDAQ:MAT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Mattel, Inc. (NASDAQ:MAT) and shared the list of stocks Jim Cramer discussed. 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.
