Insights
“I think it’s fair to say valuation is reasonable relative to the growth we expect. After a weak first quarter for software and a second quarter that favored higher-multiple names, our holdings de-rated relative to the index.”
Noran Eid, Portfolio Manager and Senior Research Analyst, provides an update on the performance of the Mid Cap Growth strategy and shares her market outlook. Listen to her most recent episode where Noran recaps market activity during 2Q 2026.
Key Insights and Trends
- Strong market performance was led by lower-quality, higher-beta, and higher-valuation companies, creating a challenging backdrop for quality-oriented investors
- Valuations across the strategy became more attractive relative to the benchmark after holdings de-rated during the first half of the year
- AI-related opportunities and disruption concerns continued to influence business fundamentals and valuation multiples across several industries
Stay Informed with Our Latest Insights
For more insights, read our 2Q 2026 Market Review Commentary or subscribe to Kaynecast where we provide the latest updates from the KAR Investment Team on our investment strategies.
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This information is being provided by Kayne Anderson Rudnick Investment Management, LLC (“KAR”) for illustrative purposes only. Information contained in this material is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action and has not been updated since the date of the material, and KAR does not undertake to update the information presented should it change. This information is based on KAR’s opinions at the time of the recording of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. Past performance is no guarantee of future results.
