“While disappointed with the strategy’s negative returns, we don’t see this as a reflection of the portfolio’s underlying earnings growth. We project growth of our companies over a full economic cycle and continue to believe that high quality companies outperform over the long-term.”
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 4Q 2025.
Key Insights and Trends
- The broad speculative upswing in small‑ and mid‑cap equities fueled by expanding AI enthusiasm and a more favorable macro backdrop, including lower interest rates and resilient consumer activity
- How shifts in market leadership favored unprofitable and more volatile areas of the benchmark, creating headwinds for quality‑focused portfolios
- The team’s long‑term view on earnings durability, supported by strong capital generation despite shorter‑term normalization pressures
- The primary contributors and detractors to the Small-Mid Cap Core strategy
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.
