Schafer Cullen Capital Management, Inc., an independent investment advisor, released its Q1 2026 investor letter for the “Small Cap Value Equity Strategy.” You can download a copy of the letter here. U.S. equity markets started 2026 with notable volatility due to geopolitical events and shifting macro conditions. The Russell 2000 rose 0.9% for the quarter, with small-cap value outperforming growth. Concerns over AI and its impact on software companies heightened among investors. The Small Cap Value Equity strategy composite returned -1.8% (gross) and -2.0% (net) in the quarter, while the Russell 2000 Value returned 5.0% for the quarter, and the broader Russell 2000 Index gained 0.9%, reflecting strength in small caps. The performance in the quarter was shaped by rising interest rates, widening credit spreads, and geopolitical tensions. Overall, the quarter challenged quality-oriented strategies, yet the firm remains committed to investing in companies with strong balance sheets and sustainable earnings, believing this focus will benefit as market conditions improve. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Schafer Cullen Capital Small Cap Value Equity Strategy highlighted Fortune Brands Innovations, Inc. (NYSE:FBIN). Headquartered in Deerfield, Illinois, Fortune Brands Innovations, Inc. (NYSE:FBIN) is a home and security products provider. On June 01, 2026, Fortune Brands Innovations, Inc. (NYSE:FBIN) closed at $39.08 per share. One-month return of Fortune Brands Innovations, Inc. (NYSE:FBIN) was 2.36%, and its shares lost 22.72% over the past 52 weeks. Fortune Brands Innovations, Inc. (NYSE:FBIN) has a market capitalization of $4.66 billion.
Schafer Cullen Capital Small Cap Value Equity Strategy stated the following regarding Fortune Brands Innovations, Inc. (NYSE:FBIN) in its Q1 2026 investor letter:
"Fortune Brands Innovations, Inc. (NYSE:FBIN) is a leading provider of home and security products, with a portfolio of well-established brands across plumbing, outdoor living, and security solutions. The company benefits from favorable long-term demand drivers tied to repair and remodel activity, new construction, and increasing consumer investment in the home. FBIN operates an ****** et-light model with strong margins, consistent free cash flow generation, and disciplined capital allocation. Following its recent strategic repositioning, the company is more focused and better aligned with its highest-return categories. We believe normalization in housing activity, combined with pricing power and operational efficiency initiatives, should drive margin expansion and earnings growth over time."