Tributary Capital Management released its second-quarter 2026 investor letter for "Multi Cap Core Equity Strategy". You can download a copy of the letter here . The Tributary Multi Cap Core's equity allocation underperformed in Q2, returning +12.5% against +15.3% for the S&P 1500 and +15.4% for the Russell 3000. Information Technology was the main driver of the Multi Cap Core strategy's -2.8% relative underperformance. Although the strategy's tech holdings delivered a strong +23.0% gain, they lagged the S&P 1500 tech sector's benchmark return of +32.3%. AI advancements are reshaping the investment landscape, with several beneficiaries in the portfolio exceeding sector returns. The Multi Cap Core Strategy's diversified portfolio enables it to balance AI exposure with risk management. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.
In its second-quarter 2026 investor letter, TCM Multi Cap Core Equity Strategy highlighted Avnet, Inc. (NASDAQ: AVT ). The Strategy initiated a position in Avnet, Inc. (NASDAQ:AVT), an electronic component technology distributer, during the quarter. On September 23, 2026, Avnet, Inc. (NASDAQ:AVT) closed at $101.15 per share. Over the past month, Avnet, Inc. (NASDAQ:AVT) returned 8.17%, but its shares are up 91.95% over the past year. Avnet, Inc. (NASDAQ:AVT) has a market capitalization of $8.30 billion, and its stock has traded within a 52-week range of $44.25 to 102.70.
TCM Multi Cap Core Equity Strategy stated the following regarding Avnet, Inc. (NASDAQ:AVT) in its Q2 2026 investor letter:
"Avnet, Inc.(NASDAQ:AVT) is a global distributor of electronic components. Three items will likely drive a continued improving profit outlook at Avnet. The company is a beneficiary of the datacenter buildout as companies spend on electrical components, a sales recovery in the higher-margin Farnell segment benefits company operating margins, and Avnet has exposure to the industrial, automotive, and aerospace end markets, which are inflecting higher following a period of inventory destocking."
Avnet, Inc. (NASDAQ:AVT) is not on our list of the 40 Most Popular Stocks Among Hedge Funds . According to our database, 50 hedge fund portfolios held Avnet, Inc. (NASDAQ:AVT) at the end of the second quarter, down from 37 in the previous quarter. While we acknowledge the potential of Avnet, Inc. (NASDAQ:AVT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .
In another article , we discussed Avnet, Inc. (NASDAQ:AVT) and shared a list of Wall Street's biggest earnings winners. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
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This article is originally published at Insider Monkey .
