LOM Financial Group

Innovative technology and small cap opportunity staged a powerful recovery in Q2 2026, as easing geopolitical tensions, robust corporate earnings and an acceleration of the AI infrastructure buildout propelled US equity markets to one of their strongest quarters of this century. Over the second quarter of 2026, the LOM Innovation and Opportunity Fund gained +33.12%, lifting the year-to-date return to 27.33%.

The second quarter was defined by the ongoing conflict in the Middle East and intermittent negotiations between the United States and Iran. The conflict brought the Strait of Hormuz, a vital shipping corridor carrying roughly one-fifth of the world’s oil and gas trade, to the brink of shutdown. West Texas Intermediate crude surged above $110 per barrel in the first week of April before retreating below $70 by quarter-end, near pre-conflict levels.

In Q2 2026, the Fund increased in value by 1.11% despite heightened interest rate volatility due to the Iran war and inflation concerns. During the quarter, investors reversed positions on rate cuts while credit spreads widened modestly on some longer-dated securities. Over the past three years, the Fund has delivered a net annualized total return of 4.39%, reflecting consistent income generation and disciplined portfolio positioning.

Over the past one-year period, the LOM Stable Income Fund achieved a net total return of +9.87%, inclusive of a +2.90% gain in Q2. During the latest quarter, dividend-paying stocks outpaced the performance of our hybrid securities, although both asset classes posted positive returns. The second quarter was defined by the ongoing conflict in the Middle East and intermittent negotiations between the United States and Iran.

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 second quarter, the Fund appreciated 8.23% as the market recovered after the initial impact of the Iran war and the subsequent impact on global supply chains and energy prices. The fast pace of the market recovery from Q1 drawdown has resulted in the Balanced Fund increasing in value by 12.47% over the past year with annual average returns in excess of eleven percent over the past three years.

Warren Buffett’s investment approach delivered a steady compounding beast, generating over 10% return on average over the last 25 years. His thesis focused on: “rule out companies in industries prone to rapid and continuous change”. These tenets look to be ingrained in Greg Abel, the successor as CEO, with his announcement to buy US homebuilder Taylor Morrison.

Cybersecurity remains one of the more attractive areas within information technology because it addresses a need that businesses simply cannot afford to ignore. In a weaker economic environment, companies may delay software upgrades, reduce consulting expenditures, or slow hiring. What they generally do not do is stop protecting their networks, cloud infrastructure, customer data, and internal systems. That dynamic makes cybersecurity exceptionally attractive.

LOM Financial announced the launch of its World Oceans Day Student Art Competition, inviting young artists across Bermuda to showcase their creativity while highlighting the importance of ocean conservation. Open to students aged 6 and up, the competition encourages participants to create artwork inspired by Bermuda’s ocean and why it matters for future generations.

Believe it or not, the best-performing S&P 500 sector over the past five years is not technology. It is energy. The sector, which bottomed at roughly 2% of the index in 2020 when oil briefly traded below zero and no investor wanted to touch it, has quietly delivered stronger returns than the technology giants that have dominated every headline since.