“Expectations of slowing economic growth usually lead investors to focus on quality: solid balance sheets, earnings stability, strong returns on capital, and sustainable secular growth. This “flight to quality” was evident in the benchmark’s first quarter’s performance which was driven by names with higher earnings’ quality, stronger balance sheets, higher returns on equity, and lower volatility- a favorable environment for us”
Each quarter, Julie Kutasov, Portfolio Manager and Senior Research Analyst provides an update on the performance of the Small-Mid Cap strategy and shares her market outlook. Listen to her most recent episode where Julie recaps market activity during 1Q 2025, focusing on:
- Tariff concerns and the potential impact on consumer spending
- The primary contributors and detractors to Small-Mid cap strategy
- A reduction in growth expectations
For more insights, read our 1Q 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.