The Russell 1000 Value ETF rose 13.81%, while L2’s strategy rose 12.49% net in the quarter, trailing by roughly 1.32%. The gap traces to a handful of individual names rather than any broad positioning error.
The drag was concentrated in the strategy’s commodity-linked and defensive holdings, which predictably lagged in a quarter dominated by the narrative speculative stocks. CF Industries was the single largest detractor, costing roughly 1.17% after falling 16% on a sizable overweight, and a cluster of cyclical and defensive positions compounded it: Devon Energy, Newmont, Lockheed Martin, ConocoPhillips, and Gilead. These are exactly the out-of-favor areas that struggled as capital continued to flow toward growth and technology.
L2 Large Cap Value Strategy – June Q2 2026
Table of contents
When
July 10, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q2 2026 STRATEGY PERFORMANCE:
The Russell 1000 Value ETF rose 13.81%, while L2’s strategy rose 12.49% net in the quarter, trailing by roughly 1.32%. The gap traces to a handful of individual names rather than any broad positioning error.
The drag was concentrated in the strategy’s commodity-linked and defensive holdings, which predictably lagged in a quarter dominated by the narrative speculative stocks. CF Industries was the single largest detractor, costing roughly 1.17% after falling 16% on a sizable overweight, and a cluster of cyclical and defensive positions compounded it: Devon Energy, Newmont, Lockheed Martin, ConocoPhillips, and Gilead. These are exactly the out-of-favor areas that struggled as capital continued to flow toward growth and technology.