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 Veralto Corporation (NYSE:VLTO) as a newly added position. Veralto Corporation (NYSE:VLTO) provides water analytics, water treatment, marking and coding, and packaging and color solutions.
On August 14, 2026, Veralto Corporation (NYSE:VLTO) closed at $97.68 per share. The one-month return of Veralto Corporation (NYSE:VLTO) was 4.86% and its shares lost 8.45% over the past 52 weeks. Veralto Corporation (NYSE:VLTO) has a market capitalization of $23.81 billion.
Weitz Investment Large Cap Equity Fund stated the following regarding Veralto Corporation (NYSE:VLTO) in its Q2 2026 investor letter: "We bought new positions in Martin Marietta Materials and Veralto Corporation (NYSE:VLTO) during the quarter. Both are repeat holdings, so we were able to act opportunistically and quickly at favorable prices. Veralto enjoys leading market positions and enviable economics in its water quality and packaging, labeling, and product traceability businesses.
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