New York, NY – The Small Cap Value Fund performance showed a mixed bag of results in the second quarter of 2024. While some classes of shares saw negative returns, others managed to stay in the positive territory. The Class I Shares of the fund recorded a decrease of 2.92% in cumulative returns, but managed to secure a 3.10% return year-to-date.

On the other hand, the Russell 2000 Value Index, a broader measure of the U.S. equity market, marked a decline of 3.64% in the second quarter, with the largest setbacks in the healthcare and consumer discretionary sectors. However, sectors like utilities and financials showed more resilience with smaller declines.

In terms of stock selection, certain companies stood out for their performance in the quarter. Fabrinet, a provider of optical packaging and precision equipment for semiconductor production, saw growth driven by strong AI-related sales. Kirby Corporation, a leading U.S. tank barge operator, outperformed expectations due to its competitive position and pricing power. Additionally, Globs Medical rebounded following the successful integration of NuVasive, a device maker it had acquired.

However, not all holdings fared well in the current economic environment. Companies like Owens & Minor, a medical supplies company, and Academy Sports + Outdoors, a retailing company, faced challenges that affected their stock performance. Despite some setbacks, the fund remains optimistic about certain investments, believing in their long-term potential.

Looking ahead, the fund managers are cautious about the economic outlook, citing concerns about higher interest rates and inflation. They also highlight potential sources of market volatility, including geopolitical tensions and uncertainties related to the AI sector. Despite challenges, the fund remains committed to its core investment principles, seeking out well-managed companies with strong fundamentals.

Overall, the Small Cap Value Fund saw a diverse performance in the second quarter, navigating through ups and downs in the market. With a focus on stock selection and sector allocation, the fund aims to deliver consistent returns for its investors in the ever-changing economic landscape.