Category: Micro Cap Commentaries

Historical commentaries are available upon request, please e-mail marketing@kennedycapital.com

Micro Cap – Q1 2024 Commentary

April 23rd, 2024
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…

Micro Cap – Q4 2023 Commentary

January 22nd, 2024
Market Review The Russell Microcap® Index increased 16.06% in the fourth quarter of 2023, as investor sentiment turned toward the potential impact of interest rate cuts and slowing inflation in 2024. This dramatic change in expectations precipitated a significant rebound in every sector except for Energy during Q424, which declined 3.23% yoy due to weakening international…

Micro Cap – Q3 2023 Commentary

October 23rd, 2023
Market Review The Russell Microcap® Index declined 7.93% in the third quarter of 2023, as investors focused on the risks associated with the rapid rise in interest rates.  Companies with meaningful exposure to big ticket capital projects and those with higher corporate debt levels have become increasingly out of favor.  We continue to see inventory…

Micro Cap – Q2 2023 Commentary

July 31st, 2023
Market Review The Russell Microcap® Index increased 5.29% in the second quarter of 2023 as concerns around financial institutions and consumer spending became less pronounced through the quarter.  The Microcap Health Care sector increased by 11.81% given a rebound in M&A transactions, increased procedure volumes, and an improved funding environment for early-stage development companies. While only…

Micro Cap – Q1 2023 Commentary

April 25th, 2023
Market Review The Russell Microcap® Index declined 2.83% in the first quarter of 2023 as liquidity concerns in the regional and community bank industry drove equity valuations lower, particularly in the month of March.  Microcap regional banks declined nearly 18% during March as the disruption in the industry took center stage.  Seven of the 11 Russell…

Micro Cap – Q4 2022 Commentary

January 27th, 2023
Market Review The Russell Microcap® Index increased 4.72% in the fourth quarter of 2022 as markets began pricing a potential for peak inflation and slowing interest rate hikes in 2023. During fourth quarter, only one sector, consumer staples, declined in the benchmark, while the top 3 sectors – energy, materials, and industrials– all generated double-digit increases.…

Micro Cap – Q3 2022 Commentary

October 27th, 2022
Market Review The Russell Microcap® Index declined 0.48% in the third quarter of 2022, as US Federal Reserve rate increases and concerns regarding an impending recession remained top-of-mind for many investors.  The distribution of returns by sector was significant in the quarter (a 26-percentage point spread between the best and worst), with six sectors declining by…