Weitz Investment Management, an investment management firm, released its second-quarter Q2 2026 investor letter for the "Large Cap Equity Fund". A copy of the letter can be downloaded here. The Large Cap Equity Fund's Institutional Class posted a return of 7.03% in Q2, trailing the 15.49% return of the Bloomberg U.S. 1000 Index.
This disparity arose as equity markets surged amid economic resilience and easing Middle East tensions, while AI-related stock performance soared due to heightened investor interest in "AI bottleneck" beneficiaries, primarily semiconductor firms. Major positions in "hyperscaler" cloud providers yielded mixed results. Risk-on factors like momentum and growth significantly outpaced defensive factors.
Despite the current volatility, the Fund maintains its philosophy of investing in quality companies at undervalued prices, believing this strategy will yield improved returns over time. The portfolio held ownership in 30 companies, with the top 10 comprising over half of the portfolio. The price-to-value ratio is in the upper-70s, indicating strong return potential.
Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026. In its Q2 2026 investor letter, Weitz Investment Large Cap Equity Fund highlighted Martin Marietta Materials, Inc. (NYSE:MLM). Martin Marietta Materials, Inc. (NYSE:MLM) is a building materials company that supplies aggregates and heavy-side building materials to the construction industry.
On August 14, 2026, Martin Marietta Materials, Inc. (NYSE:MLM) closed at $547.93 per share, reflecting a market capitalization of $32.91 billion. Martin Marietta Materials, Inc. (NYSE:MLM) posted a one‑month return of ‑1.03%, while its shares lost 9.11% over the past 52 weeks. Weitz Investment Large Cap Equity Fund stated the following regarding Martin Marietta Materials, Inc. (NYSE:MLM) in its Q2 2026 investor letter: "We bought new positions in Martin Marietta Materials, Inc. (NYSE:MLM) and Veralto during the quarter.
Both are repeat holdings, so we were able to act opportunistically and quickly at favorable prices. Martin Marietta is a leading aggregates producer with terrific assets and a solid capital allocation track record. The investment is a natural extension of our longstanding "rocks and gravel" theme." Martin Marietta Materials, Inc. (NYSE:MLM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.
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