Voya Investment Management, an investment management company, released its first-quarter 2026 investor letter for its “Voya MI Dynamic Small Cap Fund.” It is an actively managed US Small Cap core equity strategy. A copy of the letter can be downloaded here. The first quarter of 2026 was challenging for the equity markets as easing inflation was overshadowed by increased geopolitical risks and uncertainty surrounding policy. Large-cap technology and software stocks struggled due to worries about the impact of AI disruptions, while value stocks showed resilience even as their growth counterparts experienced declines. Overall, the markets remained range-bound amidst volatility throughout the quarter. The Fund underperformed its benchmark, the Russell 2000 Index (the Index), on a net asset value (NAV) basis in the quarter, driven by stock selection issues. There is a noticeable shift towards more defensive and quality-focused sectors, highlighting the importance of selective positioning and active risk management in this more volatile landscape. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Voya MI Dynamic Small Cap Fund highlighted Cleveland-Cliffs Inc. (NYSE:CLF). Cleveland-Cliffs Inc. (NYSE:CLF) is a leading steel producer in the United States and Canada that offers hot-rolled, cold-rolled, and coated products, as well as galvanneal and hot-dipped galvanized products. On June 3, 2026, Cleveland-Cliffs Inc. (NYSE:CLF) closed at $14.15 per share. One-month return of Cleveland-Cliffs Inc. (NYSE:CLF) was 32.86%, and its shares gained 99.30% over the past 52 weeks. Cleveland-Cliffs Inc. (NYSE:CLF) has a market capitalization of $8.07 billion.
Voya MI Dynamic Small Cap Fund stated the following regarding Cleveland-Cliffs Inc. (NYSE:CLF) in its Q1 2026 investor letter:
“Our position in non-benchmark stock Cleveland-Cliffs Inc. (NYSE:CLF) had a negative impact on performance. While the model had a relatively negative view, the position was held for risk management reasons. Cleveland-Cliffs is a fully integrated North American flat-rolled steel producer with significant exposure to automotive and electrical steels, supported by its own iron ore, DRI, and scrap assets. The stock was volatile and generally under pressure around 4Q25 results and a softer-than-hoped 1Q26 outlook, as weaker shipments, pricing and temporary cost headwinds weighed on near-term sentiment even while investors increasingly focused on a 2026 earnings inflection.”
