Core Insights - Prosper Stars & Stripes achieved a net return of +9.8% in Q3 2025, outperforming its peer group which returned +3.8% and the Russell 2000 Index which returned +12.4% [1] - Year-to-date, the fund returned +8.6%, lagging behind the HFRI's +13.6% and the Russell's +10.4% [1] - The fund's long book performed well, while the short book negatively impacted overall performance [1] Company Insights - Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) was highlighted as a significant stock in the fund's portfolio, with a one-month return of 7.04% but a 52-week loss of 54.39% [2] - As of November 26, 2025, Grid Dynamics had a market capitalization of $735.261 million, with shares closing at $8.67 [2] - The company is involved in IT consulting and advanced analytics, serving Fortune 500 clients, but faces challenges due to client spending apprehension and the impact of Generative AI on demand [3] - Grid Dynamics was identified as vulnerable to disruption, trading at approximately 16x FY24 EBITDA, and the fund closed its position shortly after Q3 due to these pressures [3]

Core Viewpoint - Grid Dynamics (GDYN) is currently rated as a Zacks Rank 5 (Strong Sell) despite having recently posted earnings that met expectations, indicating underlying issues with earnings estimates and market sentiment [1][6]. Company Overview - Grid Dynamics Holdings, Inc. specializes in technology consulting, platform and product engineering, and advanced analytics services, operating in the United States, United Kingdom, Netherlands, and other regions. The company was founded in 2006 and is headquartered in San Ramon, CA [2]. Earnings History - The company has beaten the Zacks Consensus Estimate in two of the last four quarters, with the other two quarters resulting in meeting earnings estimates. However, this performance alone does not justify a strong buy or sell rating [4][5]. Earnings Estimates - Recent trends show a decline in annual earnings estimates for Grid Dynamics, with the current fiscal year consensus dropping from $0.46 to $0.39 and the next fiscal year estimate decreasing from $0.52 to $0.45 over the past 90 days. This negative movement in earnings estimates is a significant factor contributing to the stock's Zacks Rank of 5 (Strong Sell) [6]. Market Context - A broader trend within the Zacks universe indicates that many stocks are experiencing negative earnings estimate revisions, which is leading to a rise in the number of stocks falling to a Zacks Rank 5 (Strong Sell) [7].

Core Insights - Loomis Sayles Small Cap Growth Fund reported a return of 9.37% for Q2 2025, underperforming the Russell 2000 Growth Index which returned 11.97% due to security selection issues in the information technology and financial sectors [1] Company Analysis - Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) experienced a one-month return of -3.37% and a 52-week loss of 44.56%, closing at $7.74 per share with a market capitalization of $676.513 million as of September 29, 2025 [2] - The company faced challenges due to overly aggressive guidance provided in February, which analysts viewed skeptically. The lack of an increase in guidance for the fiscal year in May broke a trend of 'beat and raise' reports, contributing to selling pressures on the stock [3] - Grid Dynamics reported revenue of $101.1 million in Q2 2025, marking a 21.7% increase compared to Q2 2024. However, it is noted that 12 hedge fund portfolios held the stock at the end of Q2, down from 20 in the previous quarter, indicating reduced interest among hedge funds [4]

Market Overview - The stock market experienced high volatility in Q2 2025, with a 7% drop in stock prices from April 2 to April 7 due to an unexpected tariff announcement [1] - Following the Trump Administration's retreat from extreme tariff proposals, the market saw a dramatic recovery [1] - Positive corporate earnings and solid economic data indicate potential economic growth ahead [1] Renaissance Investment Management Insights - The Renaissance Investment Small Cap Growth Strategy outperformed the Russell 2000 Growth Index in Q2 2025 [1] - The fund's investor letter highlighted Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) as a key stock, which reported a one-month return of -5.28% and a 52-week loss of 44.63% [2] Grid Dynamics Holdings, Inc. Analysis - Grid Dynamics Holdings, Inc. reported revenue of $101.1 million in Q2 2025, marking a 21.7% increase compared to Q2 2024 [4] - The company acknowledged a more uncertain macroeconomic outlook while maintaining its full-year revenue guidance [3] - Increased investments in AI are expected to pressure margins in the short term, but the company is well-positioned for digital transformation and AI adoption [3] Hedge Fund Interest - Grid Dynamics Holdings, Inc. was held by 12 hedge fund portfolios at the end of Q2 2025, a decrease from 20 in the previous quarter [4]