Bell Global Equities Fund cites Boot Barn Holdings as detractor amid geopolitical tensions
Bell Asset Management’s fund reports a 3.1% decline in March, with Boot Barn Holdings singled out as a notable underperformer despite retained long-term conviction.
Bell Global Equities Fund, managed by Bell Asset Management, reported in its first-quarter 2026 investor letter that Boot Barn Holdings (NYSE:BOOT) was a notable detractor to performance. The fund attributed the decline to a broad sell-off in the consumer discretionary sector driven by Middle East conflict, rising fuel costs, and inflation concerns. Despite the near-term pressure, the fund retained conviction in Boot Barn’s growth strategy. The fund noted that March volatility saw the MSCI World ex Australia Index fall 2.5% and the Bell Global Equities Fund decline 3.1%, with a tentative ceasefire in April helping to stabilise sentiment.
The portfolio’s underweight position in Energy was identified as the primary headwind to relative performance, compounded by poor stock selection in Communication Services, Health, and Energy. While the escalation in geopolitical tensions drove risk aversion and raised concerns around household spending, the fund noted that the recent weakness in Boot Barn appears to be sentiment-driven rather than a fundamental deterioration. This environment has created opportunities for investors, particularly as the ongoing AI disruption narrative causes indiscriminate selling across various sectors.
Boot Barn Holdings, the largest retail chain focusing on western and work-related footwear, apparel, and accessories, closed at $167.60 per share on June 5, 2026. The company has a market capitalisation of $5.09 billion, with shares gaining 0.07% over the past 52 weeks and delivering a one-month return of 9.47%. In the fourth quarter of fiscal 2026, Boot Barn’s revenue increased 19% year-on-year to $539 million. At the end of the first quarter of 2026, 48 hedge fund portfolios held Boot Barn Holdings, up from 43 in the previous quarter.
Bell Global Equities Fund stated that Boot Barn was among the most notable detractors over the month due to its exposure as a SMID-cap, high-growth apparel retailer. The fund noted that while macro risk factors have increased, the risk-reward is attractive following the valuation de-rating. The fund retains conviction in the company’s ability to deliver low single-digit same-store sales growth while continuing its strong store rollout strategy, supporting sustained top-line expansion.
Despite retaining comfort with the holding, the fund acknowledged that certain AI stocks offer greater upside potential and carry less downside risk. Boot Barn is not on the list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. Future market trends will depend on the durability of the tentative ceasefire and how ongoing energy supply disruptions affect inflation and growth through 2026.
