Rewey Asset Management, an investment management firm, released its “RAM Smid Composite” investor letter for the second quarter of 2026. A copy of the letter can be downloaded here. RAM Smid Composite gained 20.06% in the second quarter of 2026, outperforming the Russell 2500 Value Total Return Index’s 18.50% return, while year to date performance reached 31.15% versus 24.16% for the benchmark. The firm views the Russell 2500 Value’s outperformance of the S&P 500’s 15.20% and the Magnificent 7’s 11.7% gains as evidence of a continued rotation toward undervalued small and smid cap stocks. Economic growth moderated after first quarter GDP was revised. Capital markets remained strong, with IPOs raising $104 billion across 48 deals. In addition, please check the Composite’s top five holdings to know its best picks in 2026.
In its second-quarter 2026 investor letter, Rewey Asset Management highlighted Ultra Clean Holdings, Inc. (NASDAQ:UCTT). Ultra Clean Holdings, Inc. NASDAQ:(UCTT) develops and supplies critical subsystems, components and parts, and cleaning and analytical services for the semiconductor industry. On July 22, 2026, Ultra Clean Holdings, Inc. (NASDAQ:UCTT) closed at $101.46 per share. One-month return of Ultra Clean Holdings, Inc. (NASDAQ:UCTT) was -17.80% and its shares gained 319.14% over the past 52 weeks. Ultra Clean Holdings, Inc. NASDAQ:(UCTT) has a market capitalization of $4.55 billion with a 52-week trading range between $21.28 – $144.22.
Rewey Asset Management stated the following regarding Ultra Clean Holdings, Inc. (NASDAQ:UCTT) in its Q2 2026 investor letter:
“Ultra Clean Holdings, Inc. (NASDAQ:UCTT), highlighted in our 3Q25 letter, was again our top performer in 2Q26, delivering a 127.81% return. The stock surged on strong quarterly results and a sharp inflection in the outlook for semi-conductor capital spending. Memory chips are now in short supply, as it has become apparent that artificial intelligence will be a massive consumer of memory. While we believe this upcycle is still in its early stages, we have trimmed our position into strength.”
Ultra Clean Holdings, Inc. (UCTT) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Ultra Clean Holdings, Inc. (UCTT) at the end of the first quarter which was 22 in the previous quarter. While we acknowledge the risk and potential of Ultra Clean Holdings, Inc. (UCTT) 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 Ultra Clean Holdings, Inc. (UCTT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ultra Clean Holdings, Inc. NASDAQ:(UCTT) 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.
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Disclosure: None. This article is originally published at Insider Monkey.
