The fund posted a -2.47% return, lagging the Russell 2000 Index’s 21.49% gain amid sector underperformance and speculative stock rallies.
Longleaf Partners Small-Cap Fund reported a -2.47% return for Q2 2026, significantly underperforming the Russell 2000 Index’s 21.49% gain and the Russell 2000 Value Index’s 17.19% rise. The fund attributed the shortfall to unexpected declines in IT and industrials sectors, alongside a market shift toward speculative stocks.
The fund’s investment strategy prioritizes median, unweighted multiples and free cash flow growth, diverging from the quarter’s high-flying market leaders. Despite the underperformance, the firm maintains its focus on long-term value metrics, including free cash flow per share and multiple expansion potential.
Liberty Capital Corporation (NASDAQ:GLIBK), a top holding, closed at $22.00 on July 13, 2026, with a market capitalization of $877.91 million and a one-month return of 3.63%.