Market Performance - Wall Street has shown mixed performance in 2026, with small-cap stocks outperforming large-cap stocks; S&P 500 gained 1.1%, Dow Jones rose 3.6%, Nasdaq Composite slipped 0.9%, while Russell 2000 surged 6.5% [1] Macro Environment - Major developments impacting markets include heightened geopolitical tensions, fluctuations in the U.S. dollar, disruptions from a winter storm, and the nomination of Kevin Warsh as the next Federal Reserve chair [2] Geopolitical Risks - Geopolitical uncertainty has increased due to U.S. actions involving Venezuela, renewed tensions with Iran, and policy disputes with European allies, benefiting small-cap stocks that generate most revenues domestically [3] Currency Impact - The U.S. dollar strengthened following Warsh's nomination, which supports smaller companies with limited foreign exposure and reduces currency translation risks, while large-cap companies may face challenges [4] Earnings Outlook - Small-cap earnings are recovering, with the S&P SmallCap 600 index projected to return to positive growth in 2025, expecting double-digit earnings expansion over the next two years [5] Sector Performance - The finance sector of the small-cap index S&P 600 is expected to see earnings growth of 26.7% in Q4 2025 and 33.9% in Q1 2026, driven by revenue growth of 9.6% and 8.2% respectively [7] - The aerospace sector is projected to log earnings growth of 48.7% in Q4 2025 and 40.1% in Q1 2026, supported by revenue increases of 17% and 12.3% respectively [11] - The industrials sector is expected to record earnings growth of 9.5% in Q4 2025 and 9% in Q1 2026, with revenue growth projected at 5.7% and 3.6% respectively [13] Investment Opportunities - Invesco S&P SmallCap Financials ETF (PSCF) is up 4% this year, while Peoples Bancorp Inc (PEBO) has increased by 13.4% [8] - U.S. Global Technology and Aerospace & Defense ETF (WAR) is up 4.8%, and Astronics (ATRO) has risen by 35.3% [12] - Invesco S&P SmallCap Industrials ETF (PSCI) is up 15.3%, and Proto Labs (PRLB) has increased by 30.8% [14]

The Vanguard S&P Small-Cap 600 Index Fund;ETF ( VIOO ) is a passively managed exchange-traded fund (also known as an ETF) that invests in small-cap American-listed stocks. The point of this ETF is to have aWith over three years of finance and consulting experience, Nikola is laser focused on finding value in North American public equities and ETF's. His professional experience includes corporate credit risk analysis, consulting for government entities, and venture capital analysis in the med-tech space. Mor ...

Core Insights - The Brown Capital Management Small Company Fund experienced an 8.59% return in Q2 2025, underperforming the Russell 2000® Growth index which returned 11.97% [1] - The underperformance was noted to occur in the last few weeks of the quarter [1] Company Highlights - Bio-Techne Corporation (NASDAQ:TECH) is highlighted in the investor letter, with a market capitalization of $7.973 billion [2] - Bio-Techne's one-month return was -3.81%, and it experienced a significant decline of 31.43% over the past 52 weeks, closing at $51.26 per share on September 12, 2025 [2] - Bio-Techne Corporation was identified as a detractor to the fund's performance in Q2 2025 [3]