Category: Q3 2025

For 3Q, the Bank Sector Strategy returned 9.60% (gross of fees) and 9.33% (net of fees) vs. the Russell 2000® Value Index Bank Subsector benchmark of 6.70%.  Year-to-date the Bank Sector Strategy has returned 8.72% (gross of fees) and 7.91% (net of fees) vs. the Russell 2000® Value Index Bank Subsector benchmark of 5.05%.  Additional performance…

Small-capitalization stock performance was robust in the third quarter, both absolutely and relatively, with the Russell 2500™ Index +9.00%, the Russell 2000® Index +12.39% and the Russell Microcap® Index +17.03% vs. the Russell 1000 +7.99%. However, it was a very difficult period for active managers to keep up and deeper analysis highlights the primary reasons why:…

Small-capitalization stock performance was robust in the third quarter, both absolutely and relatively, with the Russell 2000® Index +12.39% and the Russell Microcap® Index +17.03% vs. the Russell 1000® +7.99%. However, it was a very difficult period for active managers to keep up and deeper analysis highlights the primary reasons why: the outperformance delta between individual…

The Russell 2500™ Index returned 9.00% in the third quarter of 2025, as ongoing optimism regarding the impact of artificial intelligence investments and a recovery in the Health Care sector drove stocks higher.  10 of the 11 benchmark sectors generated a positive return during the quarter.  The best absolute performance was generated by Information Technology…

The Russell 2500™ Index returned 9.00% in the third quarter of 2025, as ongoing optimism regarding the impact of artificial intelligence investments and a recovery in the Health Care sector drove stocks higher.   10 of the 11 benchmark sectors generated a positive return during the quarter.  The best absolute performance was generated by Information Technology +14.47%…

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…