Fiduciary Management Inc. (FMI), an independent money management firm, released its second-quarter 2026 investor letter. The letter argues that markets posted modest Q3 gains, but rising rates, oil prices, and leverage drove a sharp decline in small-cap stocks. It cautions that elevated valuations, extreme investor optimism, and heavy S&P 500 concentration in AI-related companies make current returns difficult to sustain. While AI is driving investment and earnings growth, the firm sees...
Fiduciary Management Inc.’s Q3 2026 Investor Letter
