Category: Q1 2026

Equity market performance was mixed during the 1st quarter of 2026.  The Russell 2000® Value (R2V) Index rose 4.96% while the Russell 2000® Growth (R2G) Index declined 2.81%.  Small caps outperformed large caps over the three-month period, with the Russell 2000® Index up 0.89%, compared to the Russell 1000® Index down 4.18%.  The Kennedy Capital Small…

For 1Q, the Bank Sector Strategy returned -0.05% (gross of fees) and -0.30% (net of fees) vs. the Russell 2000® Value Index Bank Subsector benchmark of 3.88%.  Additional performance can be found in the table below. Data as of 03/31/2026 2026 started out with optimism in the banking sector which was reinforced in our numerous management…

The Russell 2500™ Index returned 2.04% in the first quarter of 2026, as a strong start to the year was largely offset by the market sell-off in March tied to the conflict in the Middle East.  While this situation is inherently unpredictable, it could pressure consumer spending and has created an environment that constrains the potential…

Market Review The Russell Microcap® Index returned 1.49% in the first quarter of 2026, outperforming the (4.33)% decline in the S&P 500® and also outperforming the Russell 2000® small cap index.  Solid performance from microcap equities early in the year was largely reversed by a nearly 5% decline in the benchmark during March, as geopolitical and…

Market Review The Russell Microcap® Index returned 1.49% in the first quarter of 2026, outperforming the (4.98)% decline in the S&P 500® and also outperforming the Russell 2000® small cap index.  Solid performance from microcap equities early in the year was largely reversed by a nearly 5% decline in the benchmark during March, as geopolitical and…

Equity markets delivered mixed returns in the first quarter of 2026, with the S&P 500® declining >4%, the Russell 2000® index up modestly and the Russell Midcap Value (RMV) Index up 3.68%.  Solid absolute returns in January and February were somewhat offset by a sell-off in March associated with the effects of the conflict in the…

The Russell 2500™ Index returned 2.04% in the first quarter of 2026, as a strong start to the year was largely offset by the market sell-off in March tied to the conflict in the Middle East.  While this situation is inherently unpredictable, it could pressure consumer spending and has created an environment that constrains the potential…

Equity markets generated positive returns in the 4th quarter of 2025.  The Russell 2500™ Value (R25V) Index rose 3.15%, the Russell 2500™ Growth (R25G) Index was up 0.33%, and the S&P 500® Index (S&P) rose 2.66%. Equity market performance was mixed during the 1st quarter of 2026.  The Russell 2500™ Value (R25V) Index rose 4.77% while the…

Following a robust U.S. equity market performance in 2025 that was led by technology and large capitalization stocks, the first two months of the year began with a fairly strong rotation into value and small capitalization stocks . . . which was interrupted on February 27, 2026, by the shock of airstrikes on Iran by…

The Market: U.S. small-cap equities rallied early in the first quarter before reversing late in the period and ending modestly higher. As we entered 2026, stable inflation, lower interest rate expectations, resilient employment, and positive indicators for broad industrial demand growth supported a favorable backdrop for stocks. That environment was particularly supportive for smaller companies,…

Following a robust U.S. equity market performance in 2025 that was led by technology and large capitalization stocks, the first two months of the year began with a fairly strong rotation into value and small capitalization stocks . . . which was interrupted on February 27, 2026, by the shock of airstrikes on Iran by…