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During the second quarter of 2026, the LOM Equity Growth Fund gained +15.41%, benefiting from advantageous positioning in sectors and companies that continued to deliver robust earnings results. Performance was further supported by improving investor sentiment as markets grew increasingly optimistic about a potential resolution to the Iran conflict. Over the past twelve months, the Equity Growth Fund has appreciated 22.37%, continuing its long-standing track record of delivering average annual returns of more than ten percent over the past decade.
The second quarter was shaped by the ongoing conflict in the Middle East and intermittent negotiations between the United States and Iran. The conflict periodically threatened shipping through the Strait of Hormuz, a key route for global energy supplies, sending West Texas Intermediate crude oil above $110 per barrel in early April before retreating below $70 by quarter-end. While energy markets stabilized, the temporary spike in oil prices contributed to higher inflation expectations, leaving central banks to balance persistent price pressures against slowing economic growth.
Despite these geopolitical headwinds, global equity markets posted strong gains, rebounding from earlier volatility. Investor sentiment improved as corporate earnings generally exceeded expectations, inflation continued to moderate in many developed economies, and expectations grew that central banks would maintain or gradually ease monetary policy. U.S. equities led the advance, driven by strength in technology, communication services, and select industrial companies, while developed international and many emerging markets also generated positive returns.
Market volatility eased as concerns over the Middle East conflict diminished and energy prices stabilized, leading to stronger risk appetite and broad-based equity gains. Technology and communication services remained the best-performing sectors, supported by continued investment in artificial intelligence, cloud computing, and digital infrastructure. Industrials and financials also performed well, reflecting resilient economic activity, while energy stocks were more volatile due to fluctuating oil prices. More defensive sectors, including utilities and consumer staples, generally lagged as investors favored higher-growth opportunities.
In Q2, the Equity Growth Fund outperformed its benchmark, supported by its exposure to high growth AI infrastructure companies, semiconductors and select financial stocks. In addition, the Fund’s small- and mid-cap holdings generated strong returns during the period.
The information contained in this article is for information purposes only, and represent the views of the author. It is not intended as specific investment or financial advice, or a recommendation or solicitation to buy or sell any security. Any investments or strategies listed in this article may not be suitable for all investors. Past performance is not indicative of future performance, and as with any investment, prices may fluctuate. It is recommended that advice is sought from a qualified investment professional prior to implementing any financial plan. LOM has made every effort to ensure that the contents herein have been compiled from sources believed reliable, however LOM does not warrant the accuracy, adequacy, timeliness, or completeness of this information expressly disclaims liability for errors or omissions in this information.
