Soumya Eswaran
3 min read
The Easterly Snow Capital Small Cap Value Fund is a U.S. open-end equity mutual fund managed by Easterly Asset Management, sub-advised by Snow Capital Management. The letter can be downloaded here. The Easterly Snow Small Cap Value Fund fell 4.04% in Q3 2026, outperforming both the Bloomberg US 2000 Value Index (-7.26%) and Russell 2000 Value Index (-4.91%). Sharply higher Treasury yields, renewed Fed rate hikes, inflation concerns, geopolitical tensions, heavy government and AI-related corporate borrowing, and concentrated equity-market gains pressured markets. The fund’s outperformance came from stock selection despite sector-allocation headwinds. Management remains optimistic about attractively valued small-cap companies, emphasizing strong balance sheets, free cash flow, improving fundamentals, and potential benefits from AI investment, manufacturing growth, energy security, and reshoring. Also, check the Fund’s top five holdings to see its best picks for 2026.
In its Q3 2026 investor letter, Snow Capital Small Cap Value Fund highlighted Abercrombie & Fitch Co. (NYSE:ANF). Abercrombie & Fitch Co. (NYSE:ANF) is a global omnichannel retailer offering apparel, personal care products, and accessories through its core brands. On October 28, 2026, Abercrombie & Fitch Co. (NYSE:ANF) closed at $161.24 per share with a market capitalization of $6.84 billion. Supported by strong momentum Abercrombie & Fitch Co. (NYSE:ANF) posted a 31.27% YTD gain, trading within a 52-week range of $65.45 to $167.09.
Snow Capital Small Cap Value Fund stated the following regarding Abercrombie & Fitch Co. (NYSE:ANF) in its Q3 2026 investor letter:
“Shares of Abercrombie & Fitch Co. (NYSE:ANF) contributed positively to performance as the company reported better-than-expected results. Top-line results were mixed, though margins were strong during the quarter, suggesting limited promotional activity and healthy inventory levels. The company also provided a favorable outlook. Abercrombie & Fitch is actively repurchasing its shares, which trade at approximately 11x forward earnings estimates. The company maintains a sound balance sheet and continues to grow its store base.”
Abercrombie & Fitch Co. (NYSE:ANF) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 36 hedge fund portfolios held Abercrombie & Fitch Co. (NYSE:ANF) at the end of the second quarter, down from 39 in the previous quarter. While we acknowledge the potential of Abercrombie & Fitch Co. (NYSE:ANF) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
