MD Sass, a boutique asset management firm, published its second-quarter investor update for its flagship, the “MD Sass Concentrated Value Strategy.” The letter can be downloaded here. In the first half of 2026, AI infrastructure stocks led the market, with the Russell 1000 Value increasing by 16.3%, outpacing the S&P 500 (10.2%) and Russell 1000 Growth (5.3%). This growth was fueled by semiconductor, memory, and hardware companies benefiting from AI development, even though they are considered cyclical. These sectors, representing only 7.7% of the Russell 1000 Value at the start of the year, contributed nearly 70% of its returns. The portfolio gained 10.0% in the second quarter, net of fees, compared to 13.9% for the Russell 1000 Value Index. Year-to-date, the strategy returned 6.6%, net of fees, versus 16.3% for the Index. The portfolio faced challenges due to limited exposure to companies with the greatest upside from AI infrastructure investments. It also lacked exposure to the Energy sector, which returned about 20% in the first half amid geopolitical tensions with Iran that increased commodity prices, affecting performance. The firm recognizes the importance of adapting its strategies while maintaining core investment principles as it explores future opportunities in emerging technological themes. Also, check the fund’s top five holdings to see its best picks in 2026.
In its second-quarter 2026 investor letter, MD Sass Concentrated Value Strategy highlighted Knight-Swift Transportation Holdings Inc. (NYSE:KNX). Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is a freight transportation services provider that operates through Truckload, Less-than-truckload (LTL), Logistics, and Intermodal segments. On August 28, 2026, Knight-Swift Transportation Holdings Inc. (NYSE:KNX) closed at $67.24 per share, reflecting a market capitalization of $10.94 billion. Knight-Swift Transportation Holdings Inc. (NYSE:KNX) posted a one‑month return of ‑1.04%, while its shares gained 54.24% over the past 52 weeks.
MD Sass Concentrated Value Strategy stated the following regarding Knight-Swift Transportation Holdings Inc. (NYSE:KNX) in its Q2 2026 investor letter:
“Knight-Swift Transportation Holdings Inc. (NYSE:KNX) operates the largest full-truckload fleet in North America and operates approximately 21,000 tractors across its irregular route and dedicated fleets. Excluding fuel surcharges and intersegment transactions, Truckload represents approximately 63% of revenue, less-than-truckload represents 19%, logistics 8%, and intermodal 5%.
Trucking is a cyclical, fragmented, and historically low-margin business, and for those reasons we have avoided it. So why own it now? We believe the industry is entering a rate cycle that is meaningfully different from the demand-driven cycles of the past. This cycle is being manufactured on the supply side through a combination of economic attrition, regulatory enforcement, and increased legal liability. Importantly, this is occurring just as freight demand is turning for the first time in three years. Our thesis rests on three points:..” (Click here to read the full text)
