Investment management company Vulcan Value Partners recently released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. Vulcan Value Partners prioritizes long-term returns and lower risk over short-term performance. In the quarter, the Large Cap Composite (Net) returned 9.5%, the Small Cap Composite (Net) returned 13.3%, the Focus Composite (Net) returned 10.4%, the Focus Plus Composite (Net) returned 10.5%, and the All-Cap Composite (Net) returned 9.0%. The firm reported strong compounding across its strategies in Q2 2026. Management highlighted that their exceptional holdings remain deeply undervalued relative to “what is working” in the market, viewing this as an excellent opportunity for patient investors. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Vulcan Value Partners highlighted MillerKnoll, Inc. (NASDAQ:MLKN) as a notable contribytor. MillerKnoll, Inc. (NASDAQ:MLKN) designs, manufactures, sells, and distributes interior furnishings. On July 29, 2026, MillerKnoll, Inc. (NASDAQ:MLKN) closed at $22.91 per share, reflecting a market capitalization of $1.56 billion. MillerKnoll, Inc. (NASDAQ:MLKN) posted a one-month return of 6.96%, while its shares gained 20.71% over the past 52 weeks.
Vulcan Value Partners stated the following regarding MillerKnoll, Inc. (NASDAQ:MLKN) in its Q2 2026 investor update:
“MillerKnoll, Inc. (NASDAQ:MLKN) was a material contributor to our performance in the quarter, after being a detractor in the prior quarter. Despite the company’s strong share price performance of late, MillerKnoll remains one of our most discounted businesses. As a result, the company continues to command a significant weight in our strategy. MillerKnoll’s recent operating performance exceeded our expectations, most notably in its largest and most profitable North American Contract segment. It generated strong free cash flow and used it primarily to de-lever. As we said in last quarter’s commentary, we have long believed that MillerKnoll’s premium brands, multi-channel distribution model, and global reach reinforce the value stability of the business. We continue to believe that depressed volume trends in both its commercial and residential end markets are holding back the true normal earnings power of the business, which is materially higher relative to today’s earnings. In the meantime, we own an iconic company, supported by a strong balance sheet and a tenured management team, at a discount to our estimate of intrinsic value that remains incredibly compelling.”
MillerKnoll, Inc. (NASDAQ:MLKN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 19 hedge fund portfolios held MillerKnoll, Inc. (NASDAQ:MLKN) at the end of the first quarter, compared to 21 in the previous quarter. While we acknowledge the risk and potential of MillerKnoll, Inc. (NASDAQ:MLKN) 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 MillerKnoll, Inc. (NASDAQ:MLKN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered MillerKnoll, Inc. (NASDAQ:MLKN) and shared a bullish thesis on the company. In its Q1 2026, Vulcan Value Partners noted that geopolitical pressures weighed on MillerKnoll, Inc. (NASDAQ:MLKN), despite strong fundamentals. 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.
