Insights
“Sentiment and currency played much larger roles than fundamentals this year.”
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 4Q 2025.
Key Insights and Trends
- Market drivers included value outperformance in developed markets and AI‑led growth in Asian emerging markets
- Currency strength and sentiment—not fundamentals—drove much of the year’s returns
- AI integration across portfolio companies is largely incremental and operational, with limited long‑term clarity on competitive advantage
- Primary contributors and detractors to the International Small Cap strategy performance
Stay Informed with Our Latest Insights
For more insights, read our 4Q 2025 Commentary or subscribe to KayneCast where we provide the latest updates from the KAR Investment Team on our investment strategies.
Kaynecast is available on Apple Podcasts and Spotify.
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.
