In the third quarter of 2025, the Macquarie Small Cap Value Fund demonstrated notable performance, as its primary benchmark, the Russell 2000® Value Index, experienced a significant uplift. This period saw a general positive trend across various sectors, influencing the overall market dynamics for small-cap equities.
Detailed Investment Performance Insights
During the third quarter of 2025, the Russell 2000® Value Index, which serves as the benchmark for the Macquarie Small Cap Value Fund, recorded an impressive gain of 12.60%. This robust growth indicates a strong market environment for value-oriented small-cap stocks. In comparison, small-cap growth equities, as represented by the Russell 2000® Growth Index, also advanced but at a slightly lower rate of 12.19%, suggesting a relative outperformance by value stocks during this specific quarter. The Russell 2000® Index, encompassing both value and growth segments, reached an unprecedented peak during this time, signaling broader market confidence in the small-cap segment. Analysis of sector performance within the Russell 2000 Value Index reveals a widespread positive sentiment, with a remarkable 10 out of 11 sectors showing gains. This broad-based rally underscores a healthy and diversified market recovery or expansion. The Macquarie Small Cap Value Fund strategically positioned itself by maintaining overweight allocations in sectors identified for their attractive valuations and strong free cash flow generation. This proactive approach highlights the Fund's commitment to capitalizing on fundamental strengths within the market, aiming to enhance shareholder value through judicious selection and sector focus.
This quarter's market activities serve as a compelling reminder of the dynamic nature of small-cap investments. The superior performance of value stocks over growth stocks in this period suggests a shift in investor preference towards companies with solid fundamentals and reasonable valuations. For investors, this underscores the importance of a flexible investment strategy that can adapt to changing market conditions, leveraging both growth and value opportunities as they arise. Furthermore, the broad sector participation in the rally indicates a resilient market, capable of delivering returns across diverse industries when economic conditions are favorable. It also highlights the critical role of diligent research and strategic allocation in identifying and capitalizing on pockets of opportunity within the complex tapestry of the financial markets.