Weitz Investment Management, an investment management firm, released its second-quarter Q2 2026 investor letter for the "Multi Cap Equity Fund". The letter can be downloaded here. The Multi Cap Equity Fund's Institutional Class returned 7.90% in Q2, underperforming the Bloomberg U.S. 3000 Index's 15.71% gain.
Markets rose in the quarter on hopes of de-escalating Middle East tensions and easing oil flow. Investor focus shifted back to artificial intelligence, despite component shortages like processing chips affecting profits and valuations. Valuation-sensitive investors are selective within the AI sector, in contrast to valuation-agnostic indexes that adopt a more relaxed strategy.
Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026. In its second-quarter 2026 investor letter, Weitz Multi Cap Equity Fund highlighted Netflix, Inc. (NASDAQ:NFLX) as a newly added postion. Netflix, Inc. (NASDAQ:NFLX) is a leading subscription-based streaming entertainment platform.
On September 15, 2026, Netflix, Inc. (NASDAQ:NFLX) closed at $77.90 per share, reflecting a market capitalization of $324.37 billion. Netflix, Inc. (NASDAQ:NFLX) posted a one‑month return of -2.89%, while its shares lost 36.59% over the past 52 weeks. Weitz Multi Cap Equity Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q2 2026 investor letter: "We initiated two new positions during the second quarter.
Most will be familiar with global streaming giant, Netflix, Inc. (NASDAQ:NFLX). The company made headlines as it tried to acquire Warner Bros. from Warner Bros. Discovery before ultimately walking away from a bidding war for the company.
Some investors feared its bid signaled stagnation in its streaming business. At the time of this writing, the 2026 FIFA World Cup is also captivating audiences and draining attention and engagement from Netflix's service. Despite these near-term perception headwinds, we are optimistic that Netflix's introduction of an ad-supported tier is a savvy strategy to extend its growth runway: Netflix will not only participate in the large, multi-billion-dollar global advertising market, but a lower-price ad-tier broadens its potential customer base while simultaneously enhancing the pricing power of its premium, ad free tier." Netflix, Inc. (NASDAQ:NFLX) ranks 13 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.
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