Category: Commentaries

The Market: U.S. small caps rallied sharply in the third quarter as expectations for easier monetary policy moved from discussion to implementation. Investor sentiment improved in August following the Fed Chair’s comments in Jackson Hole, and momentum carried through as rate cuts began in September. Inflation remained above target, but the market interpreted the shift…

Market Review The Russell Microcap® Index returned 17.03% in the third quarter of 2025 and is now up 15.74% on a year-to-date basis.  This is a dramatic recovery from the 14.39% decline the index experienced in the first quarter of the year.  The primary driver behind this resurgence in index performance has been the performance of…

Market Review The Russell Microcap® Index returned 17.03% in the third quarter of 2025 and is now up 15.74% on a year-to-date basis.  This is a dramatic recovery from the 14.39% decline the index experienced in the first quarter of the year.  The primary driver behind this resurgence in index performance has been the performance of…

Equity markets rose sharply during the 3rd quarter of 2025, with the Russell Midcap® Value (RMV) Index up 6.18%.  Small cap equities significantly outperformed large caps during the quarter, with the Russell 2000® rising 12.39% compared to the Russell 1000® Index return of 7.99%.  The Kennedy Capital Mid Cap Value (MCV) composite returned 2.67% (net of fees)…

Equity markets rose sharply during the 3rd quarter of 2025.  The Russell 2000® Value (R2V) Index rose 12.60%, and the Russell 2000® Growth (R2G) Index rose 12.19%.  Small cap equities significantly outperformed large caps during the quarter, with the Russell 2000® rising 12.39% compared to the Russell 1000® Index return of 7.99%.  The Kennedy Capital Small…

Equity markets rose sharply during the 3rd quarter of 2025.  The Russell 2500™ Value (R25V) Index rose 8.17%, and the Russell 2500™ Growth (R25G) Index rose 10.73%.  Small cap equities significantly outperformed large caps during the quarter, with the Russell 2000® rising 12.39% compared to the Russell 1000® Index return of 7.99%. The Kennedy Capital Smid…

U.S. small-cap equities posted strong gains in the second quarter. After the U.S. administration’s tariff pronouncements sparked early April’s sell-off, the market rebounded once investors recognized the steep rates were more a negotiating tactic than permanent policy. A temporary 90-day rollback created room for talks, and while broader resolutions remain uncertain, several smaller trade deals…

U.S. small-cap equities posted strong gains in the second quarter. After the U.S. administration’s tariff pronouncements sparked early April’s sell-off, the market rebounded once investors recognized the steep rates were more a negotiating tactic than permanent policy. A temporary 90-day rollback created room for talks and minimally will stagger any additional inflationary impacts further into…

The Russell 2500™ Index returned 8.59% in the second quarter of 2025, as investors took a less bearish view on the potential for tariff impacts and corporate financial results were generally better than feared.   With the exception of Energy and Real Estate, every benchmark sector delivered a positive return during the quarter.  Information Technology (+18.82%) and…

The Russell 2500™ Index returned 8.59% in the second quarter of 2025, as investors took a less bearish view on the potential for tariff impacts and corporate financial results were generally better than feared.   Except for Energy and Real Estate, every benchmark sector delivered a positive return during the quarter.  Information Technology (+18.82%) and Industrials (+13.75%)…

The Market: U.S. small-cap equities posted strong gains in the second quarter. After the U.S. administration’s tariff pronouncements sparked early April’s sell-off, the market rebounded once investors recognized the steep rates were more a negotiating tactic than permanent policy. A temporary 90-day rollback created room for talks, and while broader resolutions remain uncertain, several smaller…

Market Review The Russell Microcap® Index returned 15.51% in the second quarter of 2025, driven by improving sentiment regarding the potential impact of changes in U.S. trade policy and strong performance from several early stage and AI-oriented index constituents.  In a reversal from Q1, the Information Technology sector was the best performer in the index during…

Market Review The Russell Microcap® Index returned 15.51% in the second quarter of 2025, driven by improving sentiment regarding the potential impact of chances in U.S. trade policy and strong performance from several early stage and AI-oriented index constituents.  In a reversal from Q1, the Information Technology sector was the best performer in the index during…

Equity markets were sharply higher during the 2nd quarter of 2025.  Large caps outperformed small caps over the three-month period, with the Russell 1000® Index up 11.11%, compared to the Russell 2000® Index up 8.50%.  The Kennedy Mid Cap Value (MCV) composite returned 2.12% (gross of fees) 1.98% (net of fees) during the quarter, trailing the…

Equity markets were sharply higher during the 2nd quarter of 2025.  The Russell 2500™ Value (R25V) Index rose 7.29%, and the Russell 2500™ Growth (R25G) Index rose 11.31%.  Large caps outperformed small caps over the three-month period, with the Russell 1000® Index up 11.11%, compared to the Russell 2000® Index up 8.50%. The Kennedy Capital Smid Cap Value…

Equity markets were sharply higher during the 2nd quarter of 2025.  The Russell 2000® Value (R2V) Index rose 4.97%, and the Russell 2000® Growth (R2G) Index rose 11.97%.  Large caps outperformed small caps over the three-month period, with the Russell 1000® Index up 11.11%, compared to the Russell 2000® Index up 8.50%.    The Kennedy Capital Small…

During the first half of 2025, the US stock market experienced extraordinary volatility as investors grappled with trade tensions and geopolitical risks in the Middle East and Ukraine. Leading the uncertainty in the first half was the return of aggressive US tariffs under the newly elected Trump administration which triggered threats of reciprocal tariffs from…

For 2Q, the Bank Sector Strategy returned 3.15% (gross of fees) and 2.89% (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of 4.14%.  Year-to-date the Bank Sector Strategy has returned -0.80% (gross of fees) and -1.30% (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of -1.55%.  Additional performance can be…

For 1Q, the Bank Sector Strategy returned -3.83% (gross of fees) and -3.99% (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of -5.47%.  Additional performance can be found in the table below. Data as of 3/31/2025 The first quarter was highlighted by “hope but not a lot of action” as the bank regulatory…

U.S. equity markets declined in the first quarter, pressured by a mix of policy shifts and increasing market uncertainty. The new presidential administration announced tariffs targeting Canada, Mexico, and China, some of which were implemented, while others were delayed or rolled back. The shifting nature of these actions introduced uncertainty around import costs and supply…

U.S. equity markets declined in the first quarter, pressured by a mix of policy shifts and increasing market uncertainty. The new presidential administration announced tariffs targeting Canada, Mexico, and China, some of which were implemented, while others were delayed or rolled back. The shifting nature of these actions introduced uncertainty around import costs and supply…

The Russell 2500™ Index declined 7.5% in the first quarter of 2025, as economic and geopolitical uncertainties weighed on investor and corporate sentiment.   Except for Utilities (+8.37%), every benchmark sector declined in the quarter.  Information Technology (down 16.58%) and Consumer Discretionary (down 11.77%) came under the most pressure during Q1. In our discussions with management teams,…

The Russell 2500™ Index declined 7.5% in the first quarter of 2025, as economic and geopolitical uncertainties weighed on investor and corporate sentiment.   Except for Utilities (8.37%), every benchmark sector declined in the quarter.  Information Technology (down 16.58%) and Consumer Discretionary (down 11.77%) came under the most pressure during Q1. In our discussions with management teams,…

The Market: U.S. small caps declined in the first quarter, pressured by a mix of policy shifts and market uncertainty. The new presidential administration announced tariffs targeting Canada, Mexico, and China— some of which were implemented, while others were delayed or rolled back. The shifting nature of these actions introduced uncertainty around import costs and…

The Market: U.S. small caps declined in the first quarter, pressured by a mix of policy shifts and market uncertainty. The new presidential administration announced tariffs targeting Canada, Mexico, and China— some of which were implemented, while others were delayed or rolled back. The shifting nature of these actions introduced uncertainty around import costs and…

Market Review The Russell Microcap® Index declined 14.39% in the first quarter of 2025, as uncertainty regarding policy changes planned or enacted by the Trump administration resulted in increased cautiousness from investors and corporate decision makers.  The Information Technology sector was the worst performer in the index during Q1, declining 27.07%.  The best performing sector was…

Market Review The Russell Microcap® Index declined 14.39% in the first quarter of 2025, as uncertainty regarding policy changes planned or enacted by the Trump administration resulted in increased cautiousness from investors and corporate decision makers.  The Information Technology sector was the worst performer in the index during Q1, declining 27.07%.  The best-performing sector was Utilities,…

Equity markets were weaker during the 1st quarter of 2025.  The Russell Midcap® Value (RMV) Index fell 2.11%.  Large caps outperformed small caps over the three-month period, with the Russell 1000® Index down 4.49%, compared to the Russell 2000® Index down 9.48%.  The Kennedy Capital Mid Cap Value (MCV) composite returned -3.95% (gross of fees) and…

Equity markets were weaker during the 1st quarter of 2025.  The Russell 2500™ Value (R25V) Index fell 5.83%, and the Russell 2500™ Growth (R2G) Index declined 10.80%.  Large caps outperformed small caps over the three-month period, with the Russell 1000® Index down 4.49%, compared to the Russell 2000® Index down 9.48%. The Kennedy Capital Smid Cap…

Equity markets were weaker during the 1st quarter of 2025.  The Russell 2000® Value (R2V) Index fell 7.74%, and the Russell 2000® Growth (R2G) Index declined 11.12%.  Large caps outperformed small caps over the three-month period, with the Russell 1000® Index down 4.49%, compared to the Russell 2000® Index down 9.48%.  The Kennedy Capital Small Cap…

US stocks continued to lift higher during the back half of 2024, with the market strength rounding out 2 years of strong appreciation. During 2024, the S&P 500® appreciated 23.3% which added to a 24.2% return for 2023. The strength in equity markets has been fueled by a healthy economy which has been driven by…

Equity market performance was mixed in the 4th quarter of 2024.  The Russell 2500™ Value (R25V) Index declined 0.26%, the Russell 2500™ Growth (R25G) Index was up 2.43%, and the S&P 500® Index (S&P) rose 2.41%. Small/Mid cap equity performance was robust in November (R25V +8.82%) following Donald Trump’s victory in the 2024 Presidential election. …

Macroeconomics and interest rate levels continued to dominate the factors driving U.S. equity performance. As a result, small-cap stocks experienced volatility in the fourth quarter, ultimately ending the period flattish. Initial strong post-election gains were erased as monthly inflation reports remained elevated, and the Federal Reserve signaled a more restrained approach to future rate cuts,…

The Russell 2500™ Index returned 0.62% in the fourth quarter of 2024, as the market rally following the U.S. elections proved to be short-lived.   The strongest-performing sectors in the index were Information Technology (+6.85%) and Financials (+6.57%), while pressure in Health Care (-6.33%) and Materials (-5.98%) served as offsets.  For the full year 2024, the index…

Equity market performance was mixed in the 4th quarter of 2024.  The Russell 2000® Value (R2V) Index declined 1.06%, the Russell 2000® Growth (R2G) Index was up 1.70%, and the S&P 500® Index (S&P) rose 2.41%.  Small cap performance was robust in November (R2V +9.6%) following Donald Trump’s victory in the 2024 Presidential election.  Potential for…

The Market: U.S. small-cap stocks experienced volatility in the fourth quarter, ultimately ending the period relatively flat. Post-election gains were erased after the Federal Reserve signaled a more restrained approach to future rate cuts, highlighting uncertainty around monetary policy and its implications for businesses. Nevertheless, the Fed’s stance reflects confidence in the U.S. economy, underpinned…

The Market: U.S. small-cap stocks experienced volatility in the fourth quarter, ultimately ending the period relatively flat. Post-election gains were erased after the Federal Reserve signaled a more restrained approach to future rate cuts, highlighting uncertainty around monetary policy and its implications for businesses. Nevertheless, the Fed’s stance reflects confidence in the U.S. economy, underpinned…

Macroeconomics and interest rate levels continued to dominate the factors driving U.S. equity performance. As a result, small-cap stocks experienced volatility in the fourth quarter, ultimately ending the period relatively flat. Initial strong post-election gains were erased as monthly inflation reports remained elevated, and the Federal Reserve signaled a more restrained approach to future rate…

Market Review The Russell Microcap® Index returned 5.89% in the fourth quarter of 2024, outperforming the Russell 2000® +0.33%, Russell 1000® +2.75% and S&P 500® +2.41%. Unusually robust performance from early-stage companies with exposure to themes such as aerial drones, quantum computing, and artificial intelligence were important contributors to the index performance this quarter. At…

Market Review The Russell Microcap® Index returned 5.89% in the fourth quarter of 2024, outperforming the Russell 2000® +0.33%, Russell 1000® +2.75% and S&P 500® +2.41%. Unusually robust performance from early-stage companies with exposure to themes such as aerial drones, quantum computing, and artificial intelligence were important contributors to the index performance this quarter. At the…