“As you know, the U.S. market’s strong performance this quarter was largely driven by tech—particularly companies tied to AI. Interestingly, this trend extended beyond the U.S., with many non-U.S. markets also seeing gains fueled by the ongoing AI boom. Semiconductor makers, internet platforms, and other players in the broader “AI ecosystem” benefited across both developed and emerging markets.”
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. In his latest episode, Hyung discusses key developments from 3Q 2025, including:
- Non-U.S. markets, particularly in China, Taiwan, Korea, and Japan, who have significantly benefited from the ongoing AI boom, with companies tied in various ways to AI and data center buildouts driving strong returns and index gains in both developed and emerging markets
- Primary contributors and detractors to the International Small Cap strategy performance
- The strategy’s indirect exposure to AI through companies actively adopting AI technologies to enhance their products and streamline operations
- Thoughts on why small/mid cap markets are compelling in the current environment
For more insights, read our 3Q 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.
