“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.
KayneXast is available on Apple Podcasts and Spotify.