JEF Mgr Holdings—Positioning Impacted Q2 Performance, Changes Needed to Be Made

Research evidence excerpt

JEF Mgr Holdings—Positioning Impacted Q2 Performance, Changes Needed to Be Made

USA | Equity Strategy EquityJulyResearch6, 2026

STRATEGY NOTEJEF Mgr Holdings—Positioning Impacted Q2

Performance, Changes Needed to Be Made

Updated 13Fs for Long Only funds based on 3/31 data. A lot happened in Manager Over/UnderWeights

Q2 with it being one of the best Q2s for Small Caps, best of times for Tech CommGICS SectorServ SC Core0.1 SC Growth-0.7 SC Value-1.2

\Semis, high-beta, high valuations ruled. Adding to mix, the largest FTSE Russell Discretionary 2.0 2.1 1.8

Staples 1.3 0.1 2.9

rebalancing in some time, thus active had rough time keeping up. Changes Energy -0.9 -0.1 1.8

needed to happen around Ind'ls, OW by active coming into quarter, big weight FinancialsHealth Care -0.1-5.2 -0.5-4.6 -1.0-3.7

decline due to rebalancing, UW of Health Care hurt, while UW of Tech also Industrials 2.6 4.3 5.0

challenging. InfoMaterialsTech -0.70.7 -1.40.7 0.33.3

Real Estate 0.2 -0.3 -5.5

Although it does not feel better, active had a better 1st half: Even though the numbers show that UtilitiesGICS Sector MC Core0.0 MC Growth0.4 MC Value-3.8

the 1st half of '26 has been better for active, it certainly has not felt good. Value managers are having Comm Serv -1.5 -0.5 -1.1

a very rough time, as they have had to navigate the jump in Semis and the lack of effectiveness from Discretionary -0.6 -6.2 1.9

valuation factors. The broadening out of the market has been helpful, especially for Large-Growth Staples 0.0 0.3 1.6

Energy -0.1 -0.2 1.8

folks, while things have certainly become better for Mid Growth. Financials 0.5 3.2 4.3

Health Care 0.2 0.1 2.5

Looking at names we deem "Crowded" by each manager size/ style, more of these names beat Industrials 1.7 -1.5 -1.3