L/S Flat in June; Telecom New Short

Research evidence excerpt

L/S Flat in June; Telecom New Short

Equity Research

Systematic Sector Strategy — July 1, 2026

Equity Strategy

Systematic Sector Strategy (SSS) July Update

Our Call Ohsung Kwon, CFA

• L/S flat in June (May +9%, Apr +5%). 2.5 Sharpe since launch. EquityOhsung.Kwon@wellsfargo.comAnalyst | Wells Fargo Securities,| 212-214-8027LLC

• Longs: Unchanged; Tech, Financials, HC. Short: Consumer, Transports, Telecom Kenneth Tsu

(NEW). Associate Equity Analyst | Wells Fargo Securities, LLC

Kingyiu.Tsu@wellsfargo.com | 212-214-8497

• Risk: Broadening. July L/S was positively correlated to Semis & MOMO and negatively John Glascock

to SPW. Associate Equity Analyst | Wells Fargo Securities, LLC

John.Glascock@wellsfargo.com | 212-214-1145

Zackary Morris

July new short: Telecom swaps Media & Ent. and Energy Associate Equity Analyst | Wells Fargo Securities, LLC

Zackary.Morris@wellsfargo.com | 212-214-6549

For the month of July, our Systematic Sector Strategy (SSS) maintains its long positions,

Alec Chapmanwith no new additions. Software, Autos, Banks, Health Care Equipment & Services, Tech

Hardware and Financial Services remain as longs. AssociateAlec.Chapman@wellsfargo.comEquity Analyst | Wells |Fargo212-214-8235Securities, LLC

On the short side, it adds Telecom (replacing Media & Entertainment and Energy). Staples

Retail, Transports, Food, Beverage & Tobacco, Consumer Services and HPC remain as Exhibit 2 - SSS July 2026 ranks (bold =

shorts - see Exhibit 3 for more detail. new)

PRSM Rank

L/S flat in June; 2.5 Sharpe since launch Industry Groups - GICS 2 L/S Jul Jun chg. Software Long 1 1 0

In Jun, our GICS 2 L/S strategy was -0.6%. Including midday Jul 1, it was +0.7% (we track Autos Long 2 2 0

performance from the first day close to next month's first day close).