Fund manager cites sector volatility and poor stock selection as reasons for reducing exposure to the trucking firm in Q1 2026.
Bell Asset Management sold its position in Old Dominion Freight Line (ODFL) during Q1 2026, citing downside risks amid broader market volatility. The fund’s Wholesale class declined 3.1% in March, underperforming the MSCI World ex Australia Index’s 2.5% drop, driven by underweights in Energy and weak stock picks in Communication Services and Health sectors.
The move follows a period of heightened geopolitical tensions, including the Middle East conflict, which pressured equities. A tentative April ceasefire eased some losses, but energy supply disruptions and AI-driven market shifts continue to influence sentiment. ODFL, a less-than-truckload carrier, closed at $242.57 on June 5, 2026, though fundamentals remain intact despite recent selling.
The fund’s update noted indiscriminate sector selling as sentiment-driven rather than reflective of fundamental weakness, suggesting selective opportunities in the current environment.