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Sycamore Capital Management, a franchise of Victory Capital Management, released its Q2 2026 investor letter for "Sycamore Mid Cap Value Equity Strategy". A copy of the letter can be downloaded here. Sycamore Capital's Mid Cap Value investment team focuses on a bottom-up approach to identify undervalued businesses with growth potential. In Q2 2026, the strategy returned 9.6% (net) underperforming the Russell Midcap Value Index's 13.83% return, due to both stock selection and sector allocation. Small-cap equities outpaced both large- and mid-cap equities during the second quarter of 2026. While U.S. indices like the S&P 500® Index saw significant gains in the quarter, market dynamics shifted towards a select group of stocks driven by AI-related momentum. The commentary highlights underlying risks, such as market concentration and the influence of passive investment vehicles, reminding investors to reconsider their exposure to AI. Overall, it calls for a cautious evaluation of current investments in light of these risks. Please review the Fund's top five holdings to gain insights into their key selections for 2026.

In its Q2 2026 investor letter, Sycamore Mid Cap Value Equity Strategy highlighted Trimble Inc. (NASDAQ:TRMB). Trimble Inc. (NASDAQ:TRMB) is a US-based technology company that offers solutions and platform enabling office professionals and field workers to connect workflows and industry lifecycles across construction, geospatial, and transportation sectors end markets with a growing focus in AI driven solutions. On August 12, 2026, Trimble Inc. (NASDAQ:TRMB) closed at $56.35 per share, reflecting a market capitalization of $13.14 billion. Trimble Inc. (NASDAQ:TRMB) posted a one‑month return of 3.68%, while its shares lost 33.39% over the past 52 weeks."

Sycamore Mid Cap Value Equity Strategy stated the following regarding Trimble Inc. (NASDAQ:TRMB) in its Q2 2026 investor letter:

"Trimble Inc. (NASDAQ:TRMB), a provider of software, hardware, and cloud solutions across construction, geospatial, and transportation end markets, was another top detractor. TRMB reported strong 1Q26 results, with revenue and gross, operating, and EBITDA margins all up year-over-year, but full year guidance implied deceleration for the rest of 2026. Management also flagged macro uncertainty weighing on visibility in its Field Systems hardware business and announced a transition to a consumption based hybrid pricing model for its software products. Investors remain concerned about the shifting software landscape and AI disintermediation in the space, though management believes TRMB is insulated from these disruptions. Our thesis for TRMB remains intact."

Trimble Inc. (NASDAQ:TRMB) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 43 hedge fund portfolios held Trimble Inc. (NASDAQ:TRMB) at the end of the first quarter, compared to 44 in the previous quarter. While we acknowledge the potential of Trimble Inc. (NASDAQ:TRMB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Trimble Inc. (NASDAQ:TRMB) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.