Category: Commentaries

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…

For 4Q, the Bank Sector Strategy returned 11.66% (gross of fees) and 11.38% (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of 5.36%.  For the full year 2024, the Bank Sector Strategy returned 29.22% (gross of fees) and 27.93% (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of 14.77%.  Additional…

Equity market performance was mixed in the 4th quarter of 2024.  The Russell Midcap® Value (RMV) Index declined 1.7%, while the S&P 500® Index (S&P) rose 2.4%.  Performance was robust in November (RMV +7.4%) following Donald Trump’s victory in the 2024 Presidential election.  Potential for less regulation, increased M&A activity, and faster economic growth under a…

Equity market performance was robust during the 3rd quarter of 2024.  For the quarter, the Russell 2500™ Value (R25V) Index increased 9.63%.  Small caps notably outperformed large caps, with the Russell 2000® up +9.27% versus the Russell 1000® return of +6.08%. Markets were lifted by the Federal Reserve’s decision to reduce the Federal Funds rate…

Small-capitalization stocks posted strong returns in the third quarter, outperforming large-caps, and clawing back a small amount of the year-to-date underperformance. While the end result was satisfying, the intra-quarter path was very volatile as the market see-sawed between various data-points that reflected improving inflation trends, resilient GDP growth, negative earnings revisions, conflicting labor data, and…

The Russell 2500™ Index returned 8.75% in the third quarter of 2024. In a reversal from the second quarter, small and midcap stocks experienced a meaningful rally with every sector but Energy delivering a positive return.   The strongest-performing sectors in the index were Real Estate (+17.76%) and Utilities (+14.23%), while Energy (-7.61%) and Consumer Staples (+2.62%)…

Equity market performance was robust during the 3rd quarter of 2024.  For the quarter, the Russell 2000® Value (R2V) Index increased 10.15%.  Small caps notably outperformed large caps, with the Russell 2000® up 9.27% versus the Russell 1000® return of 6.08%.  Markets were lifted by the Federal Reserve’s decision to reduce the Federal Funds rate by…

The Market: In the third quarter, small-cap stocks posted strong returns, building on their year-to-date gains. Inflation continued to ease, and despite some volatility in labor market data, the US economy consistently added jobs. Additionally, economic growth indicators remained robust. This combination of stabilizing prices and a steadying labor market led the US Federal Reserve…

The Market: In the third quarter, small-cap stocks posted strong returns, building on their year-to-date gains. Inflation continued to ease, and despite some volatility in labor market data, the US economy consistently added jobs. Additionally, economic growth indicators remained robust. This combination of stabilizing prices and a steadying labor market led the US Federal Reserve…

Small-capitalization stocks posted strong returns in the third quarter, outperforming large-caps, and clawing back a small amount of the year-to-date underperformance. While the end result was satisfying, the intra-quarter path was very volatile as the market see-sawed between various data-points that reflected improving inflation trends, resilient GDP growth, negative earnings revisions, conflicting labor data, and…

Market Review The Russell Microcap® Index returned 8.29% in the third quarter of 2024, as optimism regarding a more accommodative monetary policy from the U.S. Federal Reserve and indications of economic resilience buoyed U.S. equity prices. Reflecting the outlook for lower rates, the Real Estate, Financials and Health Care sectors were the best performers in…

Market Review The Russell Microcap® Index returned 8.29% in the third quarter of 2024, as optimism regarding a more accommodative monetary policy from the U.S. Federal Reserve and indications of economic resilience buoyed U.S. equity prices. Reflecting the outlook for lower rates, the Real Estate, Financials and Health Care sectors were the best performers in…

The Russell 2500™ Index returned 8.75% in the third quarter of 2024. In a reversal from the second quarter, small and midcap stocks experienced a meaningful rally with every sector but Energy delivering a positive return.   The strongest-performing sectors in the index were Real Estate (+17.76%) and Utilities (+14.23%), while Energy (-7.61%) and Consumer Staples (+2.62%)…

For 3Q, the Bank Sector Strategy returned 18.50% (gross of fees) and 18.20 (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of 16.63%.  Year-to-date the Bank Sector Strategy has returned 15.73% (gross of fees) and 14.86% (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of 8.94%.  Additional performance can be…

Equity market performance was robust during the 3rd quarter of 2024.  For the quarter, the Russell Midcap® Value (RMV) Index increased 10.1%.  Small caps notably outperformed large caps, with the Russell 2000 up +9.3% versus the Russell 1000 return of +6.1%.  Markets were lifted by the Federal Reserve’s decision to reduce the Federal Funds rate by…

For 2Q, the Bank Sector Strategy returned 0.05% (gross of fees) -0.20 (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of -0.42%.  Year-to-date the Bank Sector Strategy has returned -2.34% (gross of fees) -2.82 (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of -6.60%.  Additional performance can be found in…

Broadly speaking, growing macro-economic concerns led to a further widening of the performance gap between large cap vs. small cap equity markets in the quarter, with the S&P 500® Index +4.3% (+15.3% YTD) vs. the Russell 2000® Index -3.3% (+1.7% YTD). This was largely a response to higher-than-expected monthly inflation data, which drove a back-up in…

Broadly speaking, growing macro-economic concerns led to a further widening of the performance gap between large cap vs. small cap equity markets in the quarter, with the S&P 500® Index +4.3% (+15.3% YTD) vs. the Russell 2000® Index -3.3% (+1.7% YTD). This was largely a response to higher-than-expected monthly inflation data, which drove a back-up in…

The Russell 2500™ index declined -4.27% in the second quarter of 2024, with broad-based negative returns across sectors. Within the index, Consumer Discretionary -7.18% and Materials -6.50% were under the most pressure, while Utilities +6.17% was the lone sector to contribute a positive return.  It’s worth noting that the bulk of the upside in Utilities was…

The Russell 2500™ index declined -4.27% in the second quarter of 2024, with broad-based negative returns across sectors. Within the index, Consumer Discretionary -7.18% and Materials -6.50% were under the most pressure, while Utilities +6.17% was the lone sector to contribute a positive return.  It’s worth noting that bulk of the upside in Utilities was driven…

The Market: US small-cap stocks gave up some of their gains in the second quarter, but remained positive for the year. After several disappointing inflation readings in the first months of 2024, we saw a return to the disinflation trend that began last year. Along with the positive news regarding prices, we continued to see…

The Market: US small-cap stocks gave up some of their gains in the second quarter but remained positive for the year. After several disappointing inflation readings in the first months of 2024, we saw a return to the disinflation trend that began last year. Along with the positive news regarding prices, we continued to see…

Market Review The Russell Microcap® Index decreased -5.27% in the second quarter of 2024, as investors adjusted to the reality that inflation is likely to remain elevated, and fewer, if any, interest rate cuts may occur this year. Consumer Staples led the way in the Russell Microcap® index during the quarter, returning 6.24%. Specifically, within…

Market Review The Russell Microcap® Index decreased -5.27% in the second quarter of 2024, as investors adjusted to the reality that inflation is likely to remain elevated for longer and fewer, if any, interest rate cuts may occur this year. Consumer Staples led the way in the Russell Microcap® index during the quarter, returning 6.24%.…

During the first half of 2024, the US stock market experienced a mix of volatility and growth, impacted by a range of economic and geopolitical factors. During most of the six-month period, the economy and inflation continued to run hot even with the recent headwinds from higher interest rates, as the Federal Reserve continued to…

The Kennedy Capital Mid Cap Value (MCV) composite declined 9.05% (net of fees) during the quarter, versus a decline of 3.40% for the Russell Midcap® Value Index (RMV).  For the rolling 12-month period, the MCV composite returned 10.95% (net of fees), compared to the RMV’s return of 11.98%. Additional performance information included in the table…

Equity market performance was mixed during the 2nd quarter of 2024.  For the quarter, the Russell 2500™ Value (R25V) Index declined 4.31% and the Russell 2500™ Growth (R25G) Index declined 4.22%.  Large cap performance outpaced small caps, with the Russell 1000® up +3.57% compared to the Russell 2000® return of -3.28%. The Kennedy Capital Smid Cap…

Equity market performance was mixed during the 2nd quarter of 2024.  For the quarter, the Russell 2000® Value (R2V) Index declined 3.64%, and the Russell 2000® Growth (R2G) Index declined 2.92%.  Large cap performance outpaced small caps, with the Russell 1000® up 3.57% over the period.  The Kennedy Capital Small Cap Value (SCV) composite returned -2.85% net…

Equity market returns in Q1 started the year off strongly, with large capitalization stocks continuing to outperform (Russell 1000® Index +10.3% vs. Russell 2000® Index +5.2%) and growth outperforming value (Russell 2000® Growth +7.6% vs. Russell 2000® Value +2.9%). U.S. employment levels remained robust, and monthly GDP growth continued to beat expectations. With the rate of…

Equity market returns in Q1 started the year off strongly, with large capitalization stocks continuing to out-perform (Russell 1000® Index +10.3% vs. Russell 2000® Index +5.2%) and growth outperforming value (Russell 2000® Growth +7.6% vs. Russell 2000® Value +2.9%). U.S. employment levels remained robust, and monthly GDP growth continued to beat expectations. With the rate of…

Market Review The Russell Microcap® Index increased 4.68% in the first quarter of 2024, as stable economic conditions in the U.S. and a shift in sentiment toward Health Care companies drove the index higher.  After a challenging 2023, the Health Care sector led the way in the Russell Microcap® index during the quarter, returning 14.56%. …

The Market: Entering the year, financial markets anticipated more interest rate cuts in 2024 than what the US Federal Reserve projected during their December meeting. However, throughout the quarter, strong economic growth and employment metrics persisted, while inflation levels remained stubbornly high. The combination of robust employment data and stagnant disinflation led expectations for rate…

The Russell 2500™ index returned 6.92% in the first quarter of 2024, with the Industrials (+11.76%) and Energy (+11.09%) sectors leading the way.  Strength in small and midcap equities was rather broad-based, with 9 out of 11 sectors delivering positive returns (Communications Services and Real Estate were the only sectors that declined in the quarter). While…

Equity markets posted positive returns during the 1st quarter of 2024.  For the quarter, the Russell 2000® Value (R2V) Index increased +2.90%, and the Russell 2000® Growth (R2G) Index was up 7.58%.  The spread between large cap and small cap returns continued to widen, with the Russell 1000® Index (large) returning +10.30%, compared to the…

The Market: Entering the year, financial markets anticipated more interest rate cuts in 2024 than what the US Federal Reserve projected during their December meeting. However, throughout the quarter, strong economic growth and employment metrics persisted, while inflation levels remained stubbornly high. The combination of robust employment data and stagnant disinflation led expectations for rate…

Equity markets posted positive returns during the 1st quarter of 2024.  The spread between large cap and small cap returns continued to widen, with the Russell 1000® Index (large) returning +10.3%, compared to the Russell 2000® (small) up +5.2%.  Not surprisingly, mid cap returns were in between, with the Russell Midcap® Value Index (RMV) posting a…

Market Review The Russell Microcap® Index increased 4.68% in the first quarter of 2024, as stable economic conditions in the U.S. and a shift in sentiment toward Health Care companies drove the index higher.  After a challenging 2023, the Health Care sector led the way in the Russell Microcap® index during the quarter, returning 14.54%.  Within…

The Russell 2500™ index returned 6.92% in the first quarter of 2024, with the Industrials (+11.76%) and Energy (+11.09%) sectors leading the way.  Strength in small and midcap equities was rather broad-based, with 9 out of 11 sectors delivering positive returns (Communications Services and Real Estate were the only sectors that declined in the quarter). While…

For 1Q, the Bank Sector Strategy returned -2.38% (gross of fees) and -2.63% (net of fees) vs. the Russell 2000® Value Bank Subsector benchmark of -6.20%.  The portfolio outperformed as some of the late 2023 interest-rate-cut optimism came out of the banking sector to begin the year.  Additional performance information is included in the table below.…

Equity markets posted positive returns during the 1st quarter of 2024.  For the quarter, the Russell 2500™ Value (R25V) Index increased +6.07% and the Russell 2500™ Growth (R25G) Index was up 8.51%.  The spread between large cap and small cap returns continued to widen, with the Russell 1000® Index (large) returning +10.30%, compared to the…