Insights
“Asian technology companies—particularly in Taiwan and Korea—have indeed performed strongly, largely driven by optimism around the AI datacenter build‑out and related semiconductor demand. While we do have some limited and indirect exposure to this, our overall positioning reflects a degree of caution rather than broad participation in what has become a very crowded trade.”
Each quarter, Hyung Kim, Portfolio Manager and Senior Research Analyst, provides an update on the performance of the International Small Cap strategy and shares his market outlook. Listen to his most recent episode where Hyung recaps market activity during 1Q 2026.
Key Insights and Trends
- Market returns appeared relatively flat for the quarter, but underlying conditions were volatile, driven by geopolitical developments, higher energy prices, and shifting sentiment around artificial
- Relative performance reflected limited exposure to energy producers and cautious positioning toward crowded areas of the AI datacenter and semiconductor cycle
- Share price movements in several holdings were influenced by investor repricing of AI‑related disruption risk, even as underlying business fundamentals remained intact
- Primary contributors and detractors to the International Small Cap strategy
Stay Informed with Our Latest Insights
For more insights, read our 1Q 2026 Market Review Commentary or subscribe to KayneCast where we provide the latest updates from the KAR Investment Team on our investment strategies.
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This information is being provided by Kayne Anderson Rudnick Investment Management, LLC (“KAR”) for illustrative purposes only. Information contained in this material is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action and has not been updated since the date of the material, and KAR does not undertake to update the information presented should it change. This information is based on KAR’s opinions at the time of the recording of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. Past performance is no guarantee of future results.
