Sycamore Capital Management, a franchise of Victory Capital Management, released its Q2 2026 investor letter for “Sycamore Mid Cap Value Equity Strategy”. A copy of the letter can be downloaded here. Sycamore Capital’s Mid Cap Value investment team focuses on a bottom-up approach to identify undervalued businesses with growth potential. In Q2 2026, the strategy returned 9.6% (net) underperforming the Russell Midcap Value Index’s 13.83% return, due to both stock selection and sector allocation. Small-cap equities outpaced both large- and mid-cap equities during the second quarter of 2026. While U.S. indices like the S&P 500® Index saw significant gains in the quarter, market dynamics shifted towards a select group of stocks driven by AI-related momentum. The commentary highlights underlying risks, such as market concentration and the influence of passive investment vehicles, reminding investors to reconsider their exposure to AI. Overall, it calls for a cautious evaluation of current investments in light of these risks. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its Q2 2026 investor letter, Sycamore Mid Cap Value Equity Strategy highlighted Microchip Technology Incorporated (NASDAQ:MCHP) as a leading contributor. Microchip Technology Incorporated (NASDAQ:MCHP) is an American semiconductor company that develops, manufactures, and sells smart, connected, and secure embedded control solutions. On August 12, 2026, Microchip Technology Incorporated (NASDAQ:MCHP) closed at $79.44 per share, reflecting a market capitalization of $43.14 billion. Microchip Technology Incorporated (NASDAQ:MCHP) posted a one‑month return of ‑2.74%, while its shares gained 20.38% over the past 52 weeks.”
Sycamore Mid Cap Value Equity Strategy stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its Q2 2026 investor letter:
“Microchip Technology Incorporated (NASDAQ:MCHP), a leading provider of microcontrollers, microprocessors, analog devices, and FPGAs in the analog/mixed-signal semiconductor space, was another top contributor. Shares rallied sharply after a strong fiscal 4Q26 earnings release, with revenue, margins, and 1Q27 guidance all ahead of expectations. Demand was broad across end markets and particularly strong in Aerospace and Defense, a relatively insulated, long cycle business expected to provide a persistent growth anchor. Gross margins are also recovering faster than expected, as inventory reserve charges have normalized. Customer relationships are improving as MCHP holds pricing steady while peers push through aggressive increases. Taken together, the results signal a clear shift for MCHP from inventory destocking to cyclical recovery. Shares were trimmed on relative strength.”
