Per Stirling Makes a Big Mid-Cap Bet -- Adding $4.6 Million in FNX Shares

What happened

According to a recent SEC filing, Per Stirling Capital Management, LLC. increased its position in the First Trust Mid Cap Core AlphaDEX Fund (NASDAQ:FNX) by 34,644 shares during the first quarter of 2026. Based on the average closing price for the quarter, the estimated transaction value was approximately $4.6 million. The fund's quarter-end FNX stake totaled 76,851 shares with a reported value of $9.9 million.

What else to know

• FNX now accounts for approximately 1.1% of Per Stirling's 13F AUM.
• Top holdings after the filing:
  • NYSE: IVV: $48.2 million (5.3% of AUM)
  • NASDAQ: DGRW: $28.8 million (3.2% of AUM)
  • NYSE: VEA: $28.1 million (3.1% of AUM)
  • NYSE: IVW: $24.0 million (2.6% of AUM)
  • NYSE: IVE: $22.3 million (2.5% of AUM)
• As of May 11, 2026, FNX shares were trading at $138.67, up about 29% over the past year -- outperforming both the S&P 500 and its Mid-Cap Blend category benchmark by roughly 2 percentage points each.

ETF snapshot

The First Trust Mid Cap Core AlphaDEX Fund (FNX) is a U.S.-listed ETF designed to deliver enhanced mid-cap equity exposure through a systematic, factor-driven selection process.

• Seeks to track the Nasdaq AlphaDEX Mid Cap Core Index using a rules-based, fundamentally weighted methodology.
• Screens and weights constituents based on quantitative growth and value metrics -- rather than market capitalization -- aiming to capture excess returns relative to standard mid-cap indexes.

What this transaction means for investors

Per Stirling's decision to increase its FNX position by more than 80% in Q1 -- adding more than 34,000 shares worth roughly $4.6 million -- may simply reflect routine rebalancing. The transaction only represented about 0.5% of the firm’s assets under mangement (AUM). But this was still a meaningful addition to an existing stake, and it signals Per’s continued conviction in the mid-cap space.

That conviction looks well-timed. FNX has gained approximately 29% over the past year, outperforming both the S&P 500 and its Mid-Cap Blend peer group. The AlphaDEX methodology behind FNX is worth understanding. Rather than simply weighting stocks by market cap (as a traditional index fund would), it screens holdings based on fundamental growth and value factors. The goal is to generate better risk-adjusted returns than a plain-vanilla mid-cap index -- and lately, FNX has been delivering.

Mid-cap stocks often fly under the radar compared to large-caps, but historically they've offered a compelling blend of growth potential and relative stability. For investors looking to add diversified mid-cap exposure without picking individual stocks, FNX offers a disciplined, factor-based approach backed by a well-established provider in First Trust. However, those comfortable with index funds should note that FNX’s factor-based methodology comes with a meaningfully higher expense ratio -- 0.6% -- than a passive mid-cap ETF. The fund also kicks out a modest 0.8% dividend yield, which won't move the needle for income-focused investors on its own, but adds a small return cushion on top of any price appreciation.

FNX is the kind of broadly diversified mid-cap fund that can make a sensible complement to the large-cap exposure most investors already hold. Per Stirling's incremental buy suggests at least one institutional manager sees continued upside from here.

Andy Gould has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard FTSE Developed Markets ETF. The Motley Fool has a disclosure policy.