In the first quarter of 2026, the Nomura Value Fund's Institutional Class shares demonstrated a robust performance, outstripping its primary benchmark, the Russell 1000® Value Index. This success was largely attributed to astute stock-picking decisions, even as overall market conditions presented a mixed picture for U.S. equities. The fund's strategic approach allowed it to navigate broader market downturns, highlighting the resilience of its investment choices.
Nomura Value Fund's Strong Q1 2026 Performance Driven by Expert Stock Selection
During the initial quarter of 2026, the Nomura Value Fund Institutional Class shares notably exceeded the performance of the Russell 1000® Value Index. This achievement unfolded in a period where U.S. stocks generally experienced a decline, with large-cap value and small-cap segments standing out as exceptions by delivering positive returns. The fund's outperformance was predominantly a result of superior stock selection at the portfolio level, which positively contributed to its overall returns. Conversely, the impact of sector allocation on the fund's performance was neutral. Despite these positive outcomes, certain investments within the consumer discretionary and financial sectors acted as notable drag factors, primarily due to unfavorable stock selection outcomes in these areas. The market review for the quarter indicated a challenging environment for most U.S. equities, underscoring the fund's ability to generate value through its targeted investment strategies.
This quarter's results underscore the critical importance of diligent research and strategic asset allocation in navigating dynamic market environments. The Nomura Value Fund's success in a generally declining market offers valuable lessons for investors seeking stability and growth. It highlights that even in turbulent times, a focused approach to identifying undervalued assets and making informed stock selections can yield significant benefits, reinforcing the enduring principles of value investing.
