3Q2025 - U.S. Small Company Growth Commentary
Small caps posted another robust quarter, outperforming large cap peers as broad-based earnings revisions and anticipation of Fed rate cuts fueled market momentum.
- During the third quarter of 2025, the U.S. Small Cap Growth Composite Portfolio returned 21.4% gross and 21.1% net of fees, respectively, compared to the 12.2% return of the Russell 2000 Growth Index.
- The top contributors to relative performance in the period were Bloom Energy, Joby Aviation, and Powell Industries.
- The most significant detractors from the Portfolio’s relative performance in the quarter were Oddity Tech, Carpenter Technology, and TransMedics Group.
- As a measure of breadth, nearly 2/3 of companies in the Russell 2000 Growth Index delivered positive performance in the quarter and all sectors were positive except for Consumer Staples.
- We believe the small cap universe in the US is home to some of the most innovative, dynamic companies and entrepreneurs in the world.