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Alpha Wealth Funds' Q2 Woes: Underperformance Amidst Market Gains
14 Aug
Summary
- Insiders Fund saw a 1.45% loss in June, trailing the S&P 500's returns.
- Concentration in Alphabet stock and early sales of AI chip stocks impacted performance.
- Pool Corporation was highlighted by the fund for its strong distribution network.
Alpha Wealth Funds' Insiders Fund reported a Q2 2026 performance that lagged behind market benchmarks, including the S&P 500, which achieved significant gains. The fund experienced a 1.45% decline in June, contributing to a year-to-date return of 0.75%, while the S&P 500 posted a 15.2% return for the quarter.
A primary reason for the underperformance was a substantial ~30% allocation to Alphabet stock, which shifted its financial strategy. Furthermore, the fund's holdings in AI semiconductor stocks like AMD and Intel were sold prematurely, contributing to losses.
Despite the fund's struggles, the Q2 2026 letter spotlighted Pool Corporation (NASDAQ:POOL), a leading distributor of swimming pool and leisure products. The fund acknowledged Pool Corporation's robust distribution network and history of strong capital returns.
Several directors and officers at Pool Corporation made notable stock purchases in May 2026, indicating insider confidence in the company's prospects.
