Moerus Worldwide Fund’s Q2 2026 Investor Letter

Moerus Capital Management LLC, an investment management firm, recently released its “Worldwide Fund ” second-quarter 2026 investor letter. The fund navigated a highly bifurcated investment environment in the second quarter of 2026, as investor enthusiasm for artificial intelligence and technology drove a sharp rally in growth stocks while capital moved away from more traditional, value-oriented areas. The Fund’s Institutional Class returned 0.14% in Q2, compared with 14.49% for the MSCI ACWI ex USA and 14.93% for the MSCI ACWI, while its first-half return stood at 5.37%, versus 13.69% and 11.25%, respectively, for the two benchmarks. The relative underperformance was primarily driven by the Fund’s limited exposure to Information Technology as semiconductor and AI-related stocks surged, while its Energy holdings also gave back some earlier gains as oil prices declined; however, the Fund benefited from several energy-related investments during the first half. Looking ahead, Moerus views the extreme gap between expensive AI-focused areas and neglected parts of the market as an opportunity, maintaining its long-term deep-value approach of investing in unpopular businesses and assets at significant discounts to intrinsic value and using market volatility to identify potentially attractive investments. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

A copy of Moerus Worldwide Fund’s Q2 2026 investor letter can be downloaded here.