Voya MI Dynamic Small Cap Fund on Mueller Water Products, Inc.
Thesis
Mueller Water Products is an overweight holding in water-infrastructure equipment. The machine-learning models favored its volatility and short-interest characteristics. Operational results remained strong, but the shares lagged because investors were concerned about water-infrastructure spending and regulatory scrutiny.
“Despite strong operational results, shares lagged due to broader investor concerns over water infrastructure spending and regulatory scrutiny affecting the sector.”
Key risks
- Investor concern over water-infrastructure spending.
- Regulatory scrutiny affecting the sector.