Sycamore Mid Cap Value Equity Strategy’s Q2 2026 Investor Letter

Sycamore Capital Management, a franchise of Victory Capital Management, released its Q2 2026 investor letter for “Sycamore Mid Cap Value Equity Strategy”. Sycamore Capital’s Mid Cap Value investment team focuses on a bottom-up approach to identify undervalued businesses with growth potential. In Q2 2026, the strategy returned 9.6% (net) underperforming the Russell Midcap Value Index’s 13.83% return, due to both stock selection and sector allocation. Small-cap equities outpaced both large- and mid-cap equities during the second quarter of 2026. While U.S. indices like the S&P 500® Index saw significant gains in the quarter, market dynamics shifted towards a select group of stocks driven by AI-related momentum. The commentary highlights underlying risks, such as market concentration and the influence of passive investment vehicles, reminding investors to reconsider their exposure to AI. Overall, it calls for a cautious evaluation of current investments in light of these risks. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.

A copy of Sycamore Mid Cap Value Equity Strategy’s Q2 2026 investor letter can be downloaded here.