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American Century Small Cap Value Fund Q4 2025 Commentary

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⚡ Quantum Brief
U.S. equities climbed in Q4 2025, with large-cap stocks narrowly outpacing small-caps, while mid-caps trailed. The rally persisted despite a prolonged October-November government shutdown that disrupted economic data releases. GDP growth accelerated to a 4.3% annualized rate in Q3, up from 3.8% in Q2, signaling robust economic momentum amid political uncertainty and delayed fiscal reporting. The fund’s outperformance stemmed primarily from avoiding volatile bitcoin miners, though selective stock picks in undervalued sectors also contributed to gains during the quarter. Investor confidence remained resilient despite the shutdown’s impact on economic transparency, with markets shrugging off the lack of key federal data typically used for decision-making. Small-cap value strategies faced headwinds but benefited from targeted allocations, underscoring the fund’s adaptive approach amid shifting macroeconomic and sector-specific dynamics.
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American Century Investments44 FollowersFollow5ShareSavePlay(10min)CommentsSummaryU.S. stocks rose during the quarter. Large-cap stocks slightly outperformed small-cap stocks, and both outperformed mid-cap stocks.The economy advanced at an annualized rate of 4.3% in the third quarter, compared with 3.8% in the second quarter.While the sector's outperformance was mostly due to avoidance of bitcoin miners, stock selection also contributed. syahrir maulana/iStock via Getty Images Portfolio Review Stocks advanced. The U.S. government shutdown that began in October and dragged into November did not deter investors, even as it delayed or eliminated the release of key economic data. U.S. stocks rose during the quarter. Large-capThis article was written byAmerican Century Investments44 FollowersFollowAmerican Century Investments is a leading asset manager focused on delivering investment results and building long-term client relationships while supporting research that can improve health and save lives. Note: This account is not managed or monitored by American Century Investments, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use American Century Investments' official channels.

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