Virtus KAR Small-Cap Value Fund Q3 2025 Commentary
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Mutual Fund Commentaries59 FollowersFollow5ShareSavePlay(5min)CommentsSummaryMidway through August, small-cap stocks staged a notable surge with the Russell 2000® Index advancing 12.39%, its strongest quarterly performance since 2021.With the overall market moving higher and with a general “risk-on” sentiment, higher beta, lower quality, and non-earning stocks performed much better.The Virtus KAR Small-Cap Value Fund returned -1.11% (Class I) in the quarter, underperforming the Russell 2000® Value Index, which returned 12.60%.Stock selection in the financials sector, combined with stock selection and an overweight position in the industrials sector, detracted from performance.Because the portfolio is presently heavily weighted in the industrial sector, it will be impacted by that sector's performance. fcafotodigital/E+ via Getty Images Market Summary Technology stocks—and artificial intelligence (AI)-related stocks in particular—continued to dominate headlines throughout the third quarter, providing a strong tailwind for the large-cap growth segment, which advanced 10.51%, as measured by the Russell 1000® Growth Index. MidwayThis article was written byMutual Fund Commentaries59 FollowersFollowSelect quarterly mutual fund commentaries.