Category: Q4 2025

US stocks continued to lift higher during 2025 with the S&P 500® up more than 16% for the year. The strong year capped off a solid 3-year run of nearly 80% appreciation since the start of 2023. The strong year started out unsettled as Trump’s “Liberation Day Tariffs” in early April pushed the S&P 500®…

Artificial intelligence and political policy (e.g., tariffs, regulation, defense funding, immigration, Fed policy) continued to dominate business headlines and fuel market volatility. While at the same time, resilient consumer spending and increasing capital investments underpinned the ongoing earnings growth of public companies. The result has been equity markets that continue to grind higher despite underlying…

The Market: U.S. small-cap equities experienced a volatile fourth quarter but finished the period higher and ended the year up double digits overall. That outcome came amid a mixed policy backdrop, including the reopening of the U.S. government following a shutdown and continued interest rate cuts by the Federal Reserve, extending the easing cycle that…

Artificial intelligence and political policy (e.g., tariffs, regulation, defense funding, immigration, Fed policy) continued to dominate business headlines and fuel market volatility. While at the same time resilient consumer spending and increasing capital investments underpinned the ongoing earnings growth of public companies. The result has been equity markets that continue to grind higher despite underlying…

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%. Small and mid-cap equities generated steady performance in Q4 despite concerns around the impact of the government shutdown and softening…

The Russell 2500™ Index returned 2.22% in the fourth quarter of 2025 and 11.91% for the full year. This solid performance reflected a combination of easing U.S. monetary policy, fiscal stimulus associated with recently enacted legislation, and continued strength in labor market conditions. Sector-level returns within the index were mixed during the quarter. Health Care…

Equity markets generated positive returns in the 4th quarter of 2025, with the Russell Midcap® Value (RMV) Index up 1.42%.  On a full year 2025 basis, the index returned 11.05%.  The Kennedy Capital Mid Cap Value (MCV) composite declined 1.07% (net of fees) during the quarter, trailing the RMV by 248 bps.  Additional performance information is…

Market Review The Russell Microcap® Index returned nearly 23% in 2025, outperforming both large and small cap US equity indices during the year (see Figure 1).  The underpinnings of this robust performance were concentrated in early-stage businesses, with Biotech/Pharma contributing 10.2 ppts (approx. 44% of the total return) while a group of 9 companies tied to…

Market Review The Russell Microcap® Index returned nearly 23% in 2025, outperforming both large and small cap US equity indices during the year (see Figure 1).  The underpinnings of this robust performance were concentrated in early-stage businesses, with Biotech/Pharma contributing 10.2 ppts (~44% of the total return) while a group of 9 companies tied to…

The Russell 2500™ Index returned 2.22% in the fourth quarter of 2025 and 11.91% for the full year. This solid performance reflected a combination of easing U.S. monetary policy, fiscal stimulus associated with recently enacted legislation, and continued strength in labor market conditions. Sector-level returns within the index were mixed during the quarter. Health Care…

For 4Q, the Bank Sector Strategy returned 4.72% (gross of fees) and 4.46% (net of fees) vs. the Russell 2000® Value Index Bank Subsector benchmark of 3.61%.  Year-to-date, the Bank Sector Strategy has returned 13.85% (gross of fees) and 12.72% (net of fees) vs. the Russell 2000® Value Index Bank Subsector benchmark of 8.84%.  Additional performance…

Equity markets generated positive returns in the 4th quarter of 2025.  The Russell 2000® Value (R2V) Index rose 3.26%, the Russell 2000® Growth (R2G) Index was up 1.22%, and the S&P 500® Index (S&P) rose 2.66%.  Small cap equities generated steady performance in Q4 despite concerns around the impact of the government shutdown and softening labor…