1 month ago
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Soumya Eswaran
Wed, July 8, 2026 astatine 7:15 AM CDT 3 min read
Palm Valley Capital Management, an concern absorption firm, has issued the second-quarter 2026 capitalist missive for the "Palm Valley Capital Fund." A transcript of the missive tin beryllium downloaded here. In the 2nd quarter, the fund's capitalist people gained 1.80%, portion the S&P SmallCap 600 roseate 19.7% and the Morningstar Small Cap Total Return Index returned 14.0%. The Strategy chiefly focused connected small-cap categories, allocating 75% to currency equivalents. This led to underperformance comparative to benchmarks. The Fund is presently seeking much small-cap opportunities that conscionable its instrumentality criteria and volition enactment swiftly if marketplace conditions improve. The Index benefited from beardown contributions from information halfway operation and biotech sectors, portion the vigor manufacture lagged. Additionally, reviewing the fund's apical 5 holdings tin uncover its champion investments successful 2026.
In its second-quarter 2026 capitalist letter, Palm Valley Capital Management highlighted Amdocs Limited (NASDAQ:DOX). Headquartered successful Saint Louis, Missouri, Amdocs Limited (NASDAQ:DOX) is simply a starring telecommunications exertion institution that provides bundle and services to communications, entertainment, media, and different work providers. On July 7, 2026, Amdocs Limited (NASDAQ:DOX) closed astatine $52.29 per share, reflecting a marketplace capitalization of $5.55 billion. Amdocs Limited (NASDAQ:DOX) posted a one-month instrumentality of -8.21%, portion its shares mislaid 42.90% implicit the past 52 weeks.
Palm Valley Capital Management stated the pursuing regarding Amdocs Limited (NASDAQ:DOX) successful its Q2 2026 capitalist letter:
"The stocks astir negatively affecting the Fund's 2nd 4th instrumentality were Amdocs Limited (NASDAQ:DOX), LKQ (ticker: LKQ), and Chord Energy (ticker: CHRD). Amdocs was a apical decliner for the 2nd consecutive quarter, since it has been treated arsenic a casualty of artificial intelligence. Amdocs has a hybrid exemplary anchored by managed services (two-thirds of revenue) and systems integration/custom bundle (one third). It operates the halfway billing, rating, and lawsuit attraction engines of telecommunications giants, which are insulated from speedy displacement due to the fact that ripping them retired introduces terrible operational hazard to a carrier. While Amdocs' banal has been grouped with IT consultants with ample offshore worker bases similar Accenture and Infosys, axenic consultancies typically measure connected a clip and materials exemplary (i.e., headcount). Amdocs, successful contrast, wraps its services astir its ain IP and offers semipermanent managed services arrangements wherever it assumes end-to-end operational accountability. While we expect Amdocs to walk on to clients the benefits of automating its workflows, which whitethorn constrain gross growth, we judge the historically debased valuation (~7x escaped currency flow) has priced successful a terrible result that is not evident successful the existent concern trajectory."
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