MD Sass Concentrated Value Strategy Exits Intercontinental Exchange (ICE) on Thesis Gap

MD Sass, a boutique asset management firm, concluded its second-quarter investor update for the MD Sass Concentrated Value Strategy, stating the fund's exit from Intercontinental Exchange, Inc. (NYSE:ICE) due to underperformance in the sector. The second quarter of 2026 witnessed AI infrastructure stocks outpacing the market, with the Russell 1000 Value index increasing by 16.3%, compared to the S&P 500's 10.2% and Russell 1000 Growth's 5.3%.

The MD Sass Concentrated Value Strategy delivered a 10.0% return, net of fees, in Q2, while the Russell 1000 Value Index returned 13.9%. Year-to-date, the strategy returned 6.6%, trailing the index's 16.3% gain. The portfolio underperformed due to limited exposure to AI infrastructure companies and the Energy sector, which surged 20% in the first half amid geopolitical tensions.

MD Sass acknowledged the importance of adapting its strategies while adhering to core investment principles. The firm decided to exit the position in Intercontinental Exchange, Inc. due to the Mortgage Technology business underperforming, as higher interest rates dampened enthusiasm and the rise of perpetual futures impacted the futures exchange business.

The fund recognized Intercontinental Exchange's underperformance as a result of the Mortgage Technology thesis not materializing as expected, and believed there were more compelling investment opportunities elsewhere.