Upslope Capital Management exited its position in Jack Henry & Associates during the second quarter of 2026, citing risk management concerns as shares were hit hard by AI worries despite solid fundamentals. The fund noted that proving the market wrong about these AI-related fears will take considerable time and could involve further valuation compression. Jack Henry, a fintech focused on core processing and payments for regional banks, was not the only holding with this perceived risk, and the exit aimed to reduce broader exposure to a manageable level. The fund returned negative 6.6% net in the quarter, compared to a 14.3% gain for the S&P Midcap 400 ETF. Jack Henry shares closed at $148.90 on July 21, 2026, with a market capitalization of $10.58 billion, and have lost 17.52% over the past 52 weeks.
Jack Henry & Associates IncFund exited position due to AI worries causing share price decline and valuation compression.
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