Category: Small/Mid Cap Core Commentaries

The Russell 2500™ Index returned 20.3% in the second quarter of 2026, as robust performance in the Information Technology sector combined with optimism regarding a potential resolution to the conflict in the Middle East.  The outlook for interest rates is moving in an increasingly hawkish direction, as employment levels have been resilient and inflation continues…

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…

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…

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 Russell 2500™ Index returned 8.59% in the second quarter of 2025, as investors took a less bearish view on the potential for tariff impacts and corporate financial results were generally better than feared.   Except for Energy and Real Estate, every benchmark sector delivered a positive return during the quarter.  Information Technology (+18.82%) and Industrials (+13.75%)…

The Russell 2500™ Index declined 7.5% in the first quarter of 2025, as economic and geopolitical uncertainties weighed on investor and corporate sentiment.   Except for Utilities (8.37%), every benchmark sector declined in the quarter.  Information Technology (down 16.58%) and Consumer Discretionary (down 11.77%) came under the most pressure during Q1. In our discussions with management teams,…

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 index…

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%)…

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 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…