Nomura Core Equity Fund's Stellar Q2 2026 Performance: AI and Strategic Healthcare Investments Drive Growth

In the second quarter of 2026, the Nomura Core Equity Fund's Institutional Class (ICIEX) demonstrated a strong performance, surpassing its benchmark, the S&P 500. This outperformance was significantly influenced by astute stock selections in the information technology sector and a strategic reduction in energy exposure, a reversal from previous quarter trends. The fund's artificial intelligence (AI) related investments proved particularly beneficial, contributing positively to its relative performance.

Key to the fund's success was the continued appreciation of Seagate Technology shares, fueled by the escalating demand for high-capacity storage solutions driven by AI data-center infrastructure development. This trend supported further upward revisions in Seagate's earnings forecasts. Additionally, the fund strategically acquired a position in Humana, based on the belief that the company's earnings had reached a cyclical low. This outlook was underpinned by the expectation of a recovery in Medicare Advantage (MA) margins, which had been under pressure due to rising medical costs outstripping premium growth across the industry. Conversely, the fund divested its holdings in Intuit following a disappointing growth forecast for its TurboTax division, which fell short of the fund's high expectations.

The Nomura Core Equity Fund's strategic decisions reflect a proactive approach to market dynamics, leveraging emerging technologies like AI while capitalizing on potential turnarounds in established sectors. This balanced strategy of investing in high-growth areas and undervalued opportunities underscores a commitment to delivering superior returns. The fund's agility in adjusting its portfolio based on evolving market conditions and company-specific performance highlights a disciplined investment philosophy aimed at long-term value creation.