Voya Investment Management, an investment management firm, released its Q1 2026 investor letter for its “Voya MI Dynamic Small Cap Fund.” This is an actively managed core US small cap stock strategy. A copy of the letter can be downloaded here. The first quarter of 2026 was challenging for equity markets as declining inflation was overshadowed by rising geopolitical risks and policy uncertainty. Large-cap technology and software stocks struggled amid concerns about the impact of AI disruptions, while value stocks showed resilience even as their growth counterparts experienced declines. Markets generally remained range-bound amid volatility throughout the quarter. The Fund underperformed its benchmark index, the Russell 2000 Index (the Index), on a net asset value (NAV) basis during the quarter due to stock selection issues. There is a notable shift towards more defensive and quality-focused sectors, highlighting the importance of selective positioning and active risk management in this more volatile landscape. Also, check out the Fund’s top five holdings to learn your best picks in 2026.
In its Q1 2026 investor letter, Voya MI Dynamic Small Cap Fund highlighted Cleveland-Cliffs Inc. (NYSE:CLF). Cleveland-Cliffs Inc. (NYSE:CLF) is a leading steel producer in the United States and Canada, offering hot-rolled, cold-rolled and coated products, as well as galvanized and hot-dip galvanized products. On June 3, 2026, Cleveland-Cliffs Inc. (NYSE:CLF) closed at $14.15 per share. Cleveland-Cliffs Inc. (NYSE:CLF)’s monthly performance was 32.86% and its stock gained 99.30% in the past 52 weeks. Cleveland-Cliffs Inc. (NYSE:CLF) has a market capitalization of $8.07 billion.
Voya MI Dynamic Small Cap Fund stated the following regarding Cleveland-Cliffs Inc. (NYSE:CLF) in its Q1 2026 investor letter:
“Our position in non-reference shares Cleveland-Cliffs Inc. (NYSE:CLF) had a negative impact on performance. While the model had a relatively negative view, the position was maintained for risk management reasons. Cleveland-Cliffs is a fully integrated North American flat rolled steel producer with significant exposure to automotive and electrical steels, supported by its own iron ore, DRI and scrap assets. The stock was volatile and generally under pressure surrounding 4Q25 results and a weaker-than-expected 1Q26 outlook, as weaker shipments, pricing and temporary cost headwinds weighed on near-term sentiment, even as investors increasingly focused on an inflection of 2026 earnings.”
