The Russell 1000 Value ETF rose 2.64%, while the L2 Large Cap Value strategy rose 4.56% in the quarter, outperforming the benchmark by roughly 1.92%. The strategy benefitted from strong stock selection across numerous sectors. The quarter’s performance has only added to what has already been a strong year.
NetApp was the single largest contributor after rising 36% on a sizable overweight, and Dell added as well as it climbed 25%. Beyond those two, many of last quarter’s detractors reversed course: Newmont, Devon Energy, CF Industries, ConocoPhillips, and Gilead all added to relative returns. These are the same out-of-favor commodity and defensive businesses that lagged in Q2, and we continued to own them through that weakness rather than chase what was working.
Those gains were partially offset by a handful of detractors. Caterpillar, a top contributor last quarter, was the largest as it fell 24% amid a pullback in many AI-infrastructure stocks. Setbacks from Carlisle, Tapestry, and Deckers also put a modest drag on results. We discuss all three of these detractors in detail below. As you will see, the declines came despite strong quarterly results, including record revenue at both Caterpillar and Carlisle, suggesting to us that investors continue to chase price momentum rather than actual business fundamentals.
L2 Large Cap Value Strategy – September Q3 2026
Table of contents
When
October 10, 2026
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
Q3 2026 STRATEGY PERFORMANCE:
The Russell 1000 Value ETF rose 2.64%, while the L2 Large Cap Value strategy rose 4.56% in the quarter, outperforming the benchmark by roughly 1.92%. The strategy benefitted from strong stock selection across numerous sectors. The quarter’s performance has only added to what has already been a strong year.
NetApp was the single largest contributor after rising 36% on a sizable overweight, and Dell added as well as it climbed 25%. Beyond those two, many of last quarter’s detractors reversed course: Newmont, Devon Energy, CF Industries, ConocoPhillips, and Gilead all added to relative returns. These are the same out-of-favor commodity and defensive businesses that lagged in Q2, and we continued to own them through that weakness rather than chase what was working.
Those gains were partially offset by a handful of detractors. Caterpillar, a top contributor last quarter, was the largest as it fell 24% amid a pullback in many AI-infrastructure stocks. Setbacks from Carlisle, Tapestry, and Deckers also put a modest drag on results. We discuss all three of these detractors in detail below. As you will see, the declines came despite strong quarterly results, including record revenue at both Caterpillar and Carlisle, suggesting to us that investors continue to chase price momentum rather than actual business fundamentals.