Sandhill Investment Management, an investment management company, released its second quarter 2026 investor letter. A copy of the letter can be downloaded here. The letter highlighted a strong second quarter for equity markets, with the S&P 500 up about 15% and projected earnings growth at the fastest rate in five years. Despite challenges like tensions with Iran and lower oil prices, the semiconductor sector and AI advancements drove significant stock price increases. In fixed income, rising yields have made corporate bonds appealing, offering over 5% returns. However, consumer sentiment is waning, and the savings rate is at a six-decade low, raising caution about the economy. Investment trends suggest that while overall market valuations are high, quality businesses present selective opportunities for long-term gains amidst short-term volatility. Also, check the fund's top five holdings to see its best picks in 2026.
In its Q2 2026 investor letter, Sandhill Investment Management highlighted Badger Meter, Inc. (NYSE:BMI) as a new holding. Badger Meter, Inc. (NYSE:BMI) is a US-based flow measurement, quality, control, and communication solutions company focusing on Utility water smart metering solutions and software technologies. On August 26, 2026, Badger Meter, Inc. (NYSE:BMI) closed at $137.15 per share, reflecting a market capitalization of $3.98 billion. Badger Meter, Inc. (NYSE:BMI) posted a one-month return of 5.18%, while its shares lost 26.46% over the past 52 weeks.
Sandhill Investment Management stated the following regarding Badger Meter, Inc. (NYSE:BMI) in its Q2 2026 investor letter:
"Despite the elevated broad market valuation and the caution related to the consumer, quality businesses are being valued more cheaply than they have been in a long time, and we are putting capital to work. We remain selective, but individual businesses are presenting compelling value.
We recently initiated a position in Badger Meter, Inc. (NYSE:BMI), a pure-play water technology company. Badger holds a leading position in smart water meters and cellular advanced metering infrastructure technology. It sells into an oligopoly market with high switching costs and municipal utility customers that value reliability over price. The stock pulled back sharply after a temporary air pocket in revenue growth tied to project timing, rather than any change in long-term demand. We believe the multidecade replacement cycle for aging water infrastructure, combined with increasing technology adoption, gives Badger a durable growth runway, and the recent weakness provided an attractive entry point. We tracked Badger Meter on our watchlist for years before business fundamentals and valuation aligned to create an attractive entry point."
#badger #management #letter
In its Q2 2026 investor letter, Sandhill Investment Management highlighted Badger Meter, Inc. (NYSE:BMI) as a new holding. Badger Meter, Inc. (NYSE:BMI) is a US-based flow measurement, quality, control, and communication solutions company focusing on Utility water smart metering solutions and software technologies. On August 26, 2026, Badger Meter, Inc. (NYSE:BMI) closed at $137.15 per share, reflecting a market capitalization of $3.98 billion. Badger Meter, Inc. (NYSE:BMI) posted a one-month return of 5.18%, while its shares lost 26.46% over the past 52 weeks.
Sandhill Investment Management stated the following regarding Badger Meter, Inc. (NYSE:BMI) in its Q2 2026 investor letter:
"Despite the elevated broad market valuation and the caution related to the consumer, quality businesses are being valued more cheaply than they have been in a long time, and we are putting capital to work. We remain selective, but individual businesses are presenting compelling value.
We recently initiated a position in Badger Meter, Inc. (NYSE:BMI), a pure-play water technology company. Badger holds a leading position in smart water meters and cellular advanced metering infrastructure technology. It sells into an oligopoly market with high switching costs and municipal utility customers that value reliability over price. The stock pulled back sharply after a temporary air pocket in revenue growth tied to project timing, rather than any change in long-term demand. We believe the multidecade replacement cycle for aging water infrastructure, combined with increasing technology adoption, gives Badger a durable growth runway, and the recent weakness provided an attractive entry point. We tracked Badger Meter on our watchlist for years before business fundamentals and valuation aligned to create an attractive entry point."
#badger #management #letter
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