Overview

• The fund trailed the Russell 2000 and Russell 2500, as small caps rose about 8.5% in a quarter that started with tariff-driven weakness and ended in a rebound.
• Cogent Communications was the weakest IT holding, yet the fund added to the position, calling the selloff an overreaction to early growing pains in its new Wavelength Services.
• Shake Shack was the top contributor, with results and initiatives reinforcing it as a core holding despite some profit-taking.
• Portfolio changes included exiting Hillman in favor of GMS, fully selling The Hain Celestial Group after leadership turnover and deteriorating volumes, and trimming or selling a small LegalZoom stake over market-size and execution concerns.
• The fund highlighted The Hanover Insurance Group as an underfollowed regional P&C insurer and estimated its intrinsic value at $210.