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 Loar Holdings Inc. (NYSE:LOAR) as a notable performance contributor. Loar Holdings Inc. (NYSE:LOAR) is an aerospace and defense components manufacturer for aircraft and aerospace and defense systems. On July 28, 2026, Loar Holdings Inc. (NYSE:LOAR) closed at $71.60 per share, reflecting a market capitalization of $6.7 billion. Loar Holdings Inc. (NYSE:LOAR) posted a one-month return of -10.79%, while its shares lost 0.93% over the past 52 weeks.
Wasatch Global Select Strategy stated the following regarding Loar Holdings Inc. (NYSE:LOAR) in its Q2 2026 investor update:
“Another strong stock was Loar Holdings Inc. (NYSE:LOAR), a U.S.-based manufacturer and supplier of niche aerospace and defense components for aircraft and related systems. Loar has also benefited in a rally among aerospace and defense companies. Additionally, fundamentals remain strong, with the company reporting record quarterly net sales in its latest operating results. We continue to like Loar Holdings and its growth potential. Loar operates in industries that have high barriers to entry due to stringent manufacturing and certification requirements. And the long life of commercial and defense aircraft means Loar can sell the same replacement parts for several years.”
Loar Holdings Inc. (NYSE:LOAR) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 25 hedge fund portfolios held Loar Holdings Inc. (NYSE:LOAR) at the end of the first quarter, compared to 33 in the previous quarter. While we acknowledge the risk and potential of Loar Holdings Inc. (NYSE:LOAR) 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 Loar Holdings Inc. (NYSE:LOAR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Loar Holdings Inc. (NYSE:LOAR) and shared billionaire David Abrams’ top stock picks with upside potential. 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.
