Invesco Small Cap Value Fund

Investor Summary

The fund is co-managed by Jonathan Edwards, CFA, Senior Portfolio Manager, and Jonathan Mueller, CFA, CPA, Portfolio Manager, both serving since 2022. Edwards holds an MBA from the University of Texas at Austin, while Mueller has an MBA in finance and joined Invesco in 2001, bringing over two decades of investment experience. The management team operates under Invesco Advisers, Inc., which has been SEC-approved since 1988 and is part of Invesco Ltd., a global investment management company founded in 1935 with over 8,500 professionals worldwide. The fund has earned recognition including a 5-star Morningstar rating and top 1% ranking over 10 years.

Fund Strategy

The fund employs a disciplined value investing philosophy centered on intrinsic value analysis. The team seeks to provide exposure to smaller-cap companies whose stock prices have become disconnected from the intrinsic value of their businesses. Intrinsic value is determined by cash flow and is independent of market price. The approach is characterized by patience in focusing on intrinsic value opportunities, high-conviction selective stock selection, bottom-up analysis rather than macroeconomic views, and capitalizing on short-term investor fear. This tried-and-tested process has been refined through various market and economic cycles.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
12.18%	9.8%	9.8%

Executive Summary

Invesco Small Cap Value Fund outperformed its benchmark in Q1 2026, driven primarily by strong stock selection in information technology and industrials. The managers capitalized on market volatility to add new positions while eliminating holdings to fund more attractive opportunities. The fund employs an intrinsic value approach, seeking significantly undervalued companies on an absolute basis with a long-term investment horizon. Key contributors included semiconductor-related companies like Applied Optoelectronics, Lumentum, and MKS, which benefited from strong demand for optical transceivers and equipment tied to AI infrastructure spending. Notable additions included Darling Ingredients and Concentra, both seen as undervalued relative to intrinsic value estimates. The managers believe small-cap value stocks appear attractive relative to S&P 500 stocks, with the Russell 2000 Value Index trading at historical discounts. Following years of large-cap outperformance, they see greater long-term upside potential in small-caps. The portfolio maintains exposure to economically sensitive stocks, positioning for what they view as compelling long-term capital appreciation opportunities.

Forward Outlook

The managers maintain a long-term investment horizon and believe small-cap value stocks appear attractive relative to S&P 500 Index stocks. They see greater long-term upside to intrinsic value in many small-caps compared to large-caps following the recent outperformance of large-cap stocks.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Apr 20 2026	2026 Q1	AAOI, BHE, CON, DAR, ERO, EXPE, ICHR, ICLR, LITE, MKSI, QDEL	Intrinsic Value, semiconductors, small caps, technology, undervalued, value	-	Invesco Small Cap Value Fund outperformed in Q1 2026 through strong semiconductor stock selection and opportunistic portfolio repositioning. Managers see compelling long-term opportunities in small-cap value stocks trading at historical discounts to large-caps, employing intrinsic value analysis to identify significantly undervalued companies with attractive capital appreciation potential.
Jan 30 2026	2025 Q4	ACM, ARCB, COHR, CR, CRL, ENTG, EXPE, GL, GMED, HBM.TO, KBR, LITE, MKSI, NRG, PENN, SAIA, WAL, WBS	AI, Biotech, financials, healthcare, Intrinsic Value, small cap, technology, value	CRL GMED ARCB GTLB LITE	Invesco Small Cap Value Fund outperformed in Q4 2025 through disciplined intrinsic value investing, capitalizing on market volatility to add undervalued positions across sectors. Strong stock selection in technology, particularly AI-beneficiary Coherent Corp, drove returns. The managers see compelling long-term opportunities as small-cap value stocks trade at historical discounts to large-caps.
Oct 20 2025	2025 Q3	AL, COHR, DAVA.L, ENTG, EPAM, EWBC, GL, GLOB, HBM.TO, HOLX, LITE, MOH, MP, NRG, PAAS, PNFP, RMBS, SAIA, TEX, WAL, WBS	AI, energy, healthcare, Intrinsic Value, materials, small caps, Transportation, value	-	Small-cap value fund leverages intrinsic value approach to identify undervalued companies trading at significant discounts. Despite Q3 underperformance from healthcare and energy stock selection, managers see compelling long-term opportunity as Russell 2000 Value trades at historical discount to S&P 500. Portfolio positioned with economically sensitive stocks, capitalizing on market volatility to add new holdings with attractive upside potential.
Aug 7 2025	2025 Q2	AL, COHR, DAVA, ENTG, EPAM, EWBC, GL, GLOB, HBM.TO, HOLX, LITE, MOH, MP, NRG, PAAS, PNFP, RMBS, SAIA, TEX, WAL, WBS	AI, Banking, energy, healthcare, Intrinsic Value, materials, small cap, value	SAIA TEX	Invesco Small Cap Value Fund underperformed in Q3 but capitalized on volatility to add new positions while maintaining disciplined intrinsic value approach. Strong performance in materials offset weakness in healthcare and energy. Fund sees compelling long-term opportunity in small-cap value given historical valuation discount to large-caps and attractive intrinsic value gaps in current holdings.
Apr 30 2025	2025 Q1	AVTR, CCK, IART, ICLR, NRG, QDEL	healthcare, industrials, small cap, tariffs, value, volatility	-	Invesco Small Cap Value Fund underperformed in April due to healthcare headwinds but benefited from industrial strength. The team uses intrinsic value analysis to identify undervalued small-cap companies, maintaining longer-term horizons across market cycles. Recent volatility created attractive entry points for new positions and additions to existing holdings at compelling valuations.
Feb 11 2025	2024 Q4	AVTR, COHR, CSTM, EWBC, EXPE, GL, GTLS, HUN, ICLR, LITE, MSM, MXL, NRG, ONTO, QDEL, RMBS, TECK, VRT, VST, WAL, WBS	financials, industrials, Intrinsic Value, semiconductors, small cap, value	ICLR ONTO MSM	Invesco's small-cap value fund outperformed significantly in Q4, adding quality names like ICON and Onto Innovation at attractive valuations while harvesting gains from Vistra. The managers see compelling long-term opportunities in small-cap value stocks trading at historic discounts to large-caps, maintaining economically sensitive positioning through disciplined intrinsic value analysis.
Sep 30 2024	2024 Q3	ATGE, BECN, COHR, EWBC, EXPE, GL, GTLS, HSIC, IART, LITE, MKSI, MTZ, MXL, NFE, NRG, QDEL, RMBS, SPB, VRT, VST, WAL, WBS	AI, healthcare, industrials, Intrinsic Value, Regional Banks, semiconductors, small cap, value	BECN RMBS QDEL	Invesco Small Cap Value Fund underperformed in Q3 due to stock selection and sector positioning but used volatility to add attractively valued holdings. The managers maintain conviction in their intrinsic value approach, seeing significant upside potential in small-cap stocks versus large-cap. Portfolio positioned with economically sensitive stocks below estimated intrinsic value.
Jun 30 2024	2024 Q2	ATGE, AVTR, COHR, CRS, ENDV.L, EPAM, EXPE, GL, LITE, MOH, MTZ, MXL, NFE, NRG, SEM, SIMO, VRT, VST, WAL, WBS	Intrinsic Value, materials, small cap, technology, Utilities, value	GL DAVA EPAM	Invesco Small Cap Value Fund outperformed in Q2 through disciplined value investing, adding new positions in Globe Life, Endava, and EPAM Systems at attractive valuations. The fund maintains overweight exposure to economically sensitive stocks and sees compelling long-term opportunities as small-cap value trades at significant historical discount to large-cap.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Apr 20 2026

2026 Q1

AAOI, BHE, CON, DAR, ERO, EXPE, ICHR, ICLR, LITE, MKSI, QDEL

Intrinsic Value, semiconductors, small caps, technology, undervalued, value

Invesco Small Cap Value Fund outperformed in Q1 2026 through strong semiconductor stock selection and opportunistic portfolio repositioning. Managers see compelling long-term opportunities in small-cap value stocks trading at historical discounts to large-caps, employing intrinsic value analysis to identify significantly undervalued companies with attractive capital appreciation potential.

Jan 30 2026

2025 Q4

ACM, ARCB, COHR, CR, CRL, ENTG, EXPE, GL, GMED, HBM.TO, KBR, LITE, MKSI, NRG, PENN, SAIA, WAL, WBS

AI, Biotech, financials, healthcare, Intrinsic Value, small cap, technology, value

CRL
GMED
ARCB
GTLB
LITE

Invesco Small Cap Value Fund outperformed in Q4 2025 through disciplined intrinsic value investing, capitalizing on market volatility to add undervalued positions across sectors. Strong stock selection in technology, particularly AI-beneficiary Coherent Corp, drove returns. The managers see compelling long-term opportunities as small-cap value stocks trade at historical discounts to large-caps.

Oct 20 2025

2025 Q3

AL, COHR, DAVA.L, ENTG, EPAM, EWBC, GL, GLOB, HBM.TO, HOLX, LITE, MOH, MP, NRG, PAAS, PNFP, RMBS, SAIA, TEX, WAL, WBS

AI, energy, healthcare, Intrinsic Value, materials, small caps, Transportation, value

Small-cap value fund leverages intrinsic value approach to identify undervalued companies trading at significant discounts. Despite Q3 underperformance from healthcare and energy stock selection, managers see compelling long-term opportunity as Russell 2000 Value trades at historical discount to S&P 500. Portfolio positioned with economically sensitive stocks, capitalizing on market volatility to add new holdings with attractive upside potential.

Aug 7 2025

2025 Q2

AL, COHR, DAVA, ENTG, EPAM, EWBC, GL, GLOB, HBM.TO, HOLX, LITE, MOH, MP, NRG, PAAS, PNFP, RMBS, SAIA, TEX, WAL, WBS

AI, Banking, energy, healthcare, Intrinsic Value, materials, small cap, value

SAIA
TEX

Invesco Small Cap Value Fund underperformed in Q3 but capitalized on volatility to add new positions while maintaining disciplined intrinsic value approach. Strong performance in materials offset weakness in healthcare and energy. Fund sees compelling long-term opportunity in small-cap value given historical valuation discount to large-caps and attractive intrinsic value gaps in current holdings.

Apr 30 2025

2025 Q1

AVTR, CCK, IART, ICLR, NRG, QDEL

healthcare, industrials, small cap, tariffs, value, volatility

Invesco Small Cap Value Fund underperformed in April due to healthcare headwinds but benefited from industrial strength. The team uses intrinsic value analysis to identify undervalued small-cap companies, maintaining longer-term horizons across market cycles. Recent volatility created attractive entry points for new positions and additions to existing holdings at compelling valuations.

Feb 11 2025

2024 Q4

AVTR, COHR, CSTM, EWBC, EXPE, GL, GTLS, HUN, ICLR, LITE, MSM, MXL, NRG, ONTO, QDEL, RMBS, TECK, VRT, VST, WAL, WBS

financials, industrials, Intrinsic Value, semiconductors, small cap, value

ICLR
ONTO
MSM

Invesco's small-cap value fund outperformed significantly in Q4, adding quality names like ICON and Onto Innovation at attractive valuations while harvesting gains from Vistra. The managers see compelling long-term opportunities in small-cap value stocks trading at historic discounts to large-caps, maintaining economically sensitive positioning through disciplined intrinsic value analysis.

Sep 30 2024

2024 Q3

ATGE, BECN, COHR, EWBC, EXPE, GL, GTLS, HSIC, IART, LITE, MKSI, MTZ, MXL, NFE, NRG, QDEL, RMBS, SPB, VRT, VST, WAL, WBS

AI, healthcare, industrials, Intrinsic Value, Regional Banks, semiconductors, small cap, value

BECN
RMBS
QDEL

Invesco Small Cap Value Fund underperformed in Q3 due to stock selection and sector positioning but used volatility to add attractively valued holdings. The managers maintain conviction in their intrinsic value approach, seeing significant upside potential in small-cap stocks versus large-cap. Portfolio positioned with economically sensitive stocks below estimated intrinsic value.

Jun 30 2024

2024 Q2

ATGE, AVTR, COHR, CRS, ENDV.L, EPAM, EXPE, GL, LITE, MOH, MTZ, MXL, NFE, NRG, SEM, SIMO, VRT, VST, WAL, WBS

Intrinsic Value, materials, small cap, technology, Utilities, value

GL
DAVA
EPAM

Invesco Small Cap Value Fund outperformed in Q2 through disciplined value investing, adding new positions in Globe Life, Endava, and EPAM Systems at attractive valuations. The fund maintains overweight exposure to economically sensitive stocks and sees compelling long-term opportunities as small-cap value trades at significant historical discount to large-cap.

QUARTER	THEMES	TAGS
2026 Q1	Small Caps The fund focuses on small-cap value stocks which appear attractive relative to S&P 500 Index stocks. The P/E multiple of the Russell 2000 Value Index has been at a historical discount compared to the P/E of the S&P 500 Index, representing a compelling long-term investment opportunity. Following the outperformance of large-cap stocks over small-cap stocks in recent years, managers see greater long-term upside to intrinsic value in many small-caps compared to large-caps.	Small Caps Value Russell 2000
	Value The fund employs an intrinsic value approach to stock selection, seeking to create wealth by investing in companies that are significantly undervalued on an absolute basis. At quarter end, the difference between market prices of the fund's holdings and estimates of their intrinsic value was attractive. The managers believe the gap between price and estimated intrinsic value indicates attractive long-term capital appreciation potential.	Value Intrinsic Value Undervalued
	AI AI disruption fears contributed to market volatility during the quarter. Several holdings were affected by AI-related concerns, with ICON facing investor selloff driven by concerns about AI's potential impact on traditional business models. Conversely, some holdings like Lumentum benefited from investor enthusiasm for AI-driven growth potential, while MKS saw strong demand supported by higher capital spending tied to AI and advanced computing infrastructure.	AI Technology Disruption
	Semiconductors The fund has significant exposure to semiconductor-related companies including Applied Optoelectronics, Lumentum, MKS, Coherent Corp, and Ichor Holdings. These companies benefited from strong demand for optical transceivers, networking equipment, and semiconductor manufacturing equipment. The sector contributed significantly to the fund's outperformance during the quarter.	Semiconductors Technology Equipment
2025 Q4	Financials The Fund is currently substantially invested in the Financials sector, with performance closely tied to developments in this industry. Companies in the Financials sector may be adversely affected by changes in the regulatory environment and interest rate changes.	Banks Insurance Interest Rates Regulation
2025 Q3	Value The fund employs an intrinsic value approach to stock selection, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market prices and intrinsic value estimates was attractive, indicating potential long-term capital appreciation. Following outperformance of large-caps over small-caps in recent years, managers see greater long-term upside to intrinsic value in many small-caps compared to large-caps.	Intrinsic Value Undervalued Small Caps Valuation Long-term
	Small Caps The fund focuses on small-cap value stocks with the Russell 2000 Value Index trading at a historical discount compared to the S&P 500 Index P/E multiple. This valuation represents a compelling long-term investment opportunity. The managers believe small-caps offer greater upside potential compared to large-caps after recent underperformance.	Russell 2000 Discount Opportunity Underperformance Valuation
	AI Several portfolio holdings benefited from AI-driven growth potential during the quarter. Lumentum rallied due to investor enthusiasm for its AI-driven growth potential, while Coherent's optical transceivers are key enablers for networking of AI servers. However, AI also created headwinds for some holdings like Globant due to concerns about AI's long-term effect on digital consulting.	Data Centers Optical Networking Digital Growth
2025 Q2	Value The fund employs an intrinsic value approach to stock selection, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market prices and estimated intrinsic value was attractive, indicating potential long-term capital appreciation. Following outperformance of large-cap stocks over small-cap stocks in recent years, the managers see greater long-term upside to intrinsic value in many small-caps compared to large-caps.	Intrinsic Value Undervalued Small Cap Valuation Capital Appreciation
	Small Caps The fund focuses on small-cap value stocks with the Russell 2000 Value Index trading at a historical discount compared to the S&P 500 Index P/E multiple. This valuation represents a compelling long-term investment opportunity. The managers believe small-caps offer greater upside potential compared to large-caps after recent underperformance.	Russell 2000 Small Cap Value Valuation Discount Historical Opportunity
	AI Several portfolio holdings benefited from AI-driven growth potential during the quarter. Lumentum rallied due to investor enthusiasm for its AI-driven growth potential, while Coherent's optical transceivers are key enablers for networking of AI servers. The fund also sold positions in companies facing headwinds from AI disruption concerns.	AI Growth Data Centers Optical Networking Servers
2025 Q1	Value The fund uses an intrinsic value approach to stock selection, seeking companies significantly undervalued on an absolute basis. The team believes the difference between market price and estimated intrinsic value of holdings was very attractive at month end, indicating above-average capital appreciation potential. Recent market volatility has provided opportunities to purchase new holdings and add to existing positions at attractive prices.	Intrinsic Value Undervalued Value Investing Long-term Bottom-up
	Small Caps The fund focuses on small-cap companies whose stock prices have become disconnected from intrinsic business value. The portfolio is positioned in more economically sensitive stocks versus the Russell 2000 Value Index. The team maintains a longer-term investment horizon to allow this traditional value approach to play out across cycles.	Small Cap Russell 2000 Economic Sensitivity Cycles Traditional
2024 Q4	Value The fund employs an intrinsic value approach to select holdings, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market prices and estimates of intrinsic value was attractive, indicating above-average long-term capital appreciation potential. The fund maintains a long-term investment horizon focused on wealth creation through undervalued opportunities.	Intrinsic Value Undervalued Long-term Capital Appreciation Valuation
	Small Caps Following dramatic outperformance of large-cap stocks over small-cap stocks in recent years, the managers see greater long-term upside to intrinsic value in many small-caps compared to large-caps. The price/earnings multiple of the Russell 2000 Value Index is at a large historical discount compared to the S&P 500 Index, representing a compelling long-term investment opportunity.	Small-cap Russell 2000 Discount Opportunity Relative Value
	Semiconductors The fund added Onto Innovation, a semiconductor capital equipment manufacturer providing process control solutions for microelectronics manufacturing. The company has benefited from the AI boom, but weakness during the quarter provided an attractive entry point. The fund also sold MaxLinear based on intrinsic value estimation.	Semiconductor Capital Equipment AI Process Control Entry Point
2024 Q3	Value The fund uses an intrinsic value approach to select investments, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market price and estimated intrinsic value of holdings was very attractive according to their estimation. Following outperformance of large-cap over small-cap in recent years, they see greater long-term upside to intrinsic value in many small-cap stocks compared to large-cap stocks.	Intrinsic Value Undervalued Valuation Small Cap Discount
	AI The fund added Rambus, which designs memory chips and semiconductor products, believing it will benefit long term from increased memory demand related to artificial intelligence. Coherent was highlighted as benefiting from growing awareness of improved growth outlook driven by AI, given that its optical transceivers are key enablers for networking of AI servers.	Memory Demand Semiconductors Optical Transceivers AI Servers Growth
	Semiconductors The fund holds multiple semiconductor companies including Rambus, Coherent, and MaxLinear. They added Rambus during a short-term industry downcycle, viewing it as an opportunity to purchase below intrinsic value. Coherent benefited from AI-related growth prospects, while MaxLinear detracted due to customer inventory destocking and weak end market demand.	Industry Downcycle Memory Chips Optical Components Inventory Destocking End Market
2024 Q2	AI The fund benefits from AI growth through holdings like Coherent, which develops optical transceivers that are key enablers for networking of AI servers. Vistra shares rose due to better outlook for long-term demand driven by the build out of energy-intensive AI data centers.	Data Centers Optical Networking Infrastructure
	Value The fund uses an intrinsic value approach to select investments, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market price and estimated intrinsic value of holdings was very attractive, indicating above-average long-term capital appreciation potential.	Intrinsic Value Undervalued Discount

QUARTER

THEMES

Small Caps

The fund focuses on small-cap value stocks which appear attractive relative to S&P 500 Index stocks. The P/E multiple of the Russell 2000 Value Index has been at a historical discount compared to the P/E of the S&P 500 Index, representing a compelling long-term investment opportunity. Following the outperformance of large-cap stocks over small-cap stocks in recent years, managers see greater long-term upside to intrinsic value in many small-caps compared to large-caps.

Small Caps Value Russell 2000

Value

The fund employs an intrinsic value approach to stock selection, seeking to create wealth by investing in companies that are significantly undervalued on an absolute basis. At quarter end, the difference between market prices of the fund's holdings and estimates of their intrinsic value was attractive. The managers believe the gap between price and estimated intrinsic value indicates attractive long-term capital appreciation potential.

Value Intrinsic Value Undervalued

AI

AI disruption fears contributed to market volatility during the quarter. Several holdings were affected by AI-related concerns, with ICON facing investor selloff driven by concerns about AI's potential impact on traditional business models. Conversely, some holdings like Lumentum benefited from investor enthusiasm for AI-driven growth potential, while MKS saw strong demand supported by higher capital spending tied to AI and advanced computing infrastructure.

AI Technology Disruption

Semiconductors

The fund has significant exposure to semiconductor-related companies including Applied Optoelectronics, Lumentum, MKS, Coherent Corp, and Ichor Holdings. These companies benefited from strong demand for optical transceivers, networking equipment, and semiconductor manufacturing equipment. The sector contributed significantly to the fund's outperformance during the quarter.

Semiconductors Technology Equipment

2025 Q4

Financials

The Fund is currently substantially invested in the Financials sector, with performance closely tied to developments in this industry. Companies in the Financials sector may be adversely affected by changes in the regulatory environment and interest rate changes.

Banks Insurance Interest Rates Regulation

2025 Q3

Value

The fund employs an intrinsic value approach to stock selection, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market prices and intrinsic value estimates was attractive, indicating potential long-term capital appreciation. Following outperformance of large-caps over small-caps in recent years, managers see greater long-term upside to intrinsic value in many small-caps compared to large-caps.

Intrinsic Value Undervalued Small Caps Valuation Long-term

Small Caps

The fund focuses on small-cap value stocks with the Russell 2000 Value Index trading at a historical discount compared to the S&P 500 Index P/E multiple. This valuation represents a compelling long-term investment opportunity. The managers believe small-caps offer greater upside potential compared to large-caps after recent underperformance.

Russell 2000 Discount Opportunity Underperformance Valuation

AI

Several portfolio holdings benefited from AI-driven growth potential during the quarter. Lumentum rallied due to investor enthusiasm for its AI-driven growth potential, while Coherent's optical transceivers are key enablers for networking of AI servers. However, AI also created headwinds for some holdings like Globant due to concerns about AI's long-term effect on digital consulting.

Data Centers Optical Networking Digital Growth

2025 Q2

Value

The fund employs an intrinsic value approach to stock selection, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market prices and estimated intrinsic value was attractive, indicating potential long-term capital appreciation. Following outperformance of large-cap stocks over small-cap stocks in recent years, the managers see greater long-term upside to intrinsic value in many small-caps compared to large-caps.

Intrinsic Value Undervalued Small Cap Valuation Capital Appreciation

Small Caps

Russell 2000 Small Cap Value Valuation Discount Historical Opportunity

AI

Several portfolio holdings benefited from AI-driven growth potential during the quarter. Lumentum rallied due to investor enthusiasm for its AI-driven growth potential, while Coherent's optical transceivers are key enablers for networking of AI servers. The fund also sold positions in companies facing headwinds from AI disruption concerns.

AI Growth Data Centers Optical Networking Servers

2025 Q1

Value

The fund uses an intrinsic value approach to stock selection, seeking companies significantly undervalued on an absolute basis. The team believes the difference between market price and estimated intrinsic value of holdings was very attractive at month end, indicating above-average capital appreciation potential. Recent market volatility has provided opportunities to purchase new holdings and add to existing positions at attractive prices.

Intrinsic Value Undervalued Value Investing Long-term Bottom-up

Small Caps

The fund focuses on small-cap companies whose stock prices have become disconnected from intrinsic business value. The portfolio is positioned in more economically sensitive stocks versus the Russell 2000 Value Index. The team maintains a longer-term investment horizon to allow this traditional value approach to play out across cycles.

Small Cap Russell 2000 Economic Sensitivity Cycles Traditional

2024 Q4

Value

The fund employs an intrinsic value approach to select holdings, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market prices and estimates of intrinsic value was attractive, indicating above-average long-term capital appreciation potential. The fund maintains a long-term investment horizon focused on wealth creation through undervalued opportunities.

Intrinsic Value Undervalued Long-term Capital Appreciation Valuation

Small Caps

Following dramatic outperformance of large-cap stocks over small-cap stocks in recent years, the managers see greater long-term upside to intrinsic value in many small-caps compared to large-caps. The price/earnings multiple of the Russell 2000 Value Index is at a large historical discount compared to the S&P 500 Index, representing a compelling long-term investment opportunity.

Small-cap Russell 2000 Discount Opportunity Relative Value

Semiconductors

The fund added Onto Innovation, a semiconductor capital equipment manufacturer providing process control solutions for microelectronics manufacturing. The company has benefited from the AI boom, but weakness during the quarter provided an attractive entry point. The fund also sold MaxLinear based on intrinsic value estimation.

Semiconductor Capital Equipment AI Process Control Entry Point

2024 Q3

Value

The fund uses an intrinsic value approach to select investments, seeking companies significantly undervalued on an absolute basis. At quarter end, the difference between market price and estimated intrinsic value of holdings was very attractive according to their estimation. Following outperformance of large-cap over small-cap in recent years, they see greater long-term upside to intrinsic value in many small-cap stocks compared to large-cap stocks.

Intrinsic Value Undervalued Valuation Small Cap Discount

AI

The fund added Rambus, which designs memory chips and semiconductor products, believing it will benefit long term from increased memory demand related to artificial intelligence. Coherent was highlighted as benefiting from growing awareness of improved growth outlook driven by AI, given that its optical transceivers are key enablers for networking of AI servers.

Memory Demand Semiconductors Optical Transceivers AI Servers Growth

Semiconductors

The fund holds multiple semiconductor companies including Rambus, Coherent, and MaxLinear. They added Rambus during a short-term industry downcycle, viewing it as an opportunity to purchase below intrinsic value. Coherent benefited from AI-related growth prospects, while MaxLinear detracted due to customer inventory destocking and weak end market demand.

Industry Downcycle Memory Chips Optical Components Inventory Destocking End Market

2024 Q2

AI

The fund benefits from AI growth through holdings like Coherent, which develops optical transceivers that are key enablers for networking of AI servers. Vistra shares rose due to better outlook for long-term demand driven by the build out of energy-intensive AI data centers.

Data Centers Optical Networking Infrastructure

Value

Intrinsic Value Undervalued Discount

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jan 30, 2026	Fund Letters	Jonathan Edwards	ARCB	ArcBest	Industrials	Air Freight & Logistics	Bull	NASDAQ	efficiency, Freight-Cycle, Logistics, Ltl-Shipping, operating leverage	Login
Jan 30, 2026	Fund Letters	Jonathan Edwards	GTLB	Chart Industries	Industrials	Industrial Machinery	Bear	New York Stock Exchange	capital recycling, clean energy, M&A, Opportunity-Cost	Login
Jan 30, 2026	Fund Letters	Jonathan Edwards	LITE	Lumentum Holdings	Information Technology	Optical Components	Bull	NASDAQ	AI infrastructure, data centers, margin expansion, Optical-Components, secular growth	Login
Jan 30, 2026	Fund Letters	Jonathan Edwards	CRL	Charles River Laboratories International	Health Care	Life Sciences Tools & Services	Bull	New York Stock Exchange	Biotech-Spending, Cro, drug development, Outsourcing, valuation discount	Login
Jan 30, 2026	Fund Letters	Jonathan Edwards	GMED	Globus Medical	Health Care	Medical Devices	Bull	New York Stock Exchange	Integration-Risk, Medical devices, Orthopedics, recovery, Spine	Login
Sep 30, 2025	Fund Letters	Invesco Small Cap Value Fund	TEX	Terex Corporation	Industrials	Industrial Machinery & Supplies & Components	Bull	NYSE	Aerial Work Platforms, Electric Utility, environmental solutions, Industrial Equipment, manufacturing, Materials Processing, waste management	Login
Sep 30, 2025	Fund Letters	Invesco Small Cap Value Fund	SAIA	Saia Inc	Industrials	Ground Transportation	Bull	NASDAQ	Cyclical, Freight, Logistics, Ltl, Network expansion, Transportation, Trucking	Login
Dec 31, 2024	Fund Letters	Invesco Small Cap Value Fund	MSM	MSC Industrial Direct Co., Inc.	Industrials	Trading Companies & Distributors	Bull	NYSE	Cyclical, end markets, Industrial distribution, Maintenance Products, Metalworking, MRO, North America, Value	Login
Dec 31, 2024	Fund Letters	Invesco Small Cap Value Fund	ONTO	Onto Innovation Inc.	Information Technology	Semiconductors & Semiconductor Equipment	Bull	NYSE	AI, Defect Inspection, manufacturing, Metrology, Microelectronics, process control, semiconductor equipment, Value, Yield Enhancement	Login
Dec 31, 2024	Fund Letters	Invesco Small Cap Value Fund	ICLR	ICON plc	Health Care	Life Sciences Tools & Services	Bull	NASDAQ	Biotech, Clinical trials, contract research, Cro, drug development, Healthcare Outsourcing, oligopoly, Pharmaceutical Services, Value	Login
Sep 30, 2024	Fund Letters	Invesco Small Cap Value Fund	BECN	Beacon Roofing Supply	Capital Goods	Trading Companies & Distributors	Bull	NASDAQ	Building Products, construction, Distributor, North America, Roofing, Value, Weather Impact	Login
Sep 30, 2024	Fund Letters	Invesco Small Cap Value Fund	RMBS	Rambus	Technology Hardware & Equipment	Semiconductors	Bull	NASDAQ	AI, Artificial Intelligence, Cyclical, Global, memory chips, semiconductors, technology, Value	Login
Sep 30, 2024	Fund Letters	Invesco Small Cap Value Fund	QDEL	QuidelOrtho	Health Care Equipment & Services	Health Care Equipment	Bull	NASDAQ	CEO transition, diagnostics, healthcare, Medical devices, operational efficiency, turnaround, Value	Login
Jun 30, 2024	Fund Letters	Invesco Small Cap Value Fund	GL	Globe Life Inc	Financials	Life & Health Insurance	Bull	NYSE	contrarian, Insurance, life insurance, recovery, Regulatory Overhang, Supplemental Health, Value	Login
Jun 30, 2024	Fund Letters	Invesco Small Cap Value Fund	DAVA	Endava plc	Information Technology	IT Consulting & Other Services	Bull	NYSE	Artificial Intelligence, Cloud software, Cyclical, Digitization, IT services, Technology Consulting, UK	Login
Jun 30, 2024	Fund Letters	Invesco Small Cap Value Fund	EPAM	EPAM Systems Inc	Information Technology	IT Consulting & Other Services	Bull	NYSE	cash generation, Digital Platform Engineering, Guidance cut, Software Development, Technology Services, Value	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jan 30, 2026

Fund Letters

Jonathan Edwards

ARCB

ArcBest

Industrials

Air Freight & Logistics

Bull

NASDAQ

efficiency, Freight-Cycle, Logistics, Ltl-Shipping, operating leverage

Jan 30, 2026

Fund Letters

Jonathan Edwards

GTLB

Chart Industries

Industrials

Industrial Machinery

Bear

New York Stock Exchange

capital recycling, clean energy, M&A, Opportunity-Cost

Jan 30, 2026

Fund Letters

Jonathan Edwards

LITE

Lumentum Holdings

Information Technology

Optical Components

Bull

NASDAQ

AI infrastructure, data centers, margin expansion, Optical-Components, secular growth

Jan 30, 2026

Fund Letters

Jonathan Edwards

CRL

Charles River Laboratories International

Health Care

Life Sciences Tools & Services

Bull

New York Stock Exchange

Biotech-Spending, Cro, drug development, Outsourcing, valuation discount

Jan 30, 2026

Fund Letters

Jonathan Edwards

GMED

Globus Medical

Health Care

Medical Devices

Bull

New York Stock Exchange

Integration-Risk, Medical devices, Orthopedics, recovery, Spine

Sep 30, 2025

Fund Letters

Invesco Small Cap Value Fund

TEX

Terex Corporation

Industrials

Industrial Machinery & Supplies & Components

Bull

NYSE

Aerial Work Platforms, Electric Utility, environmental solutions, Industrial Equipment, manufacturing, Materials Processing, waste management

Sep 30, 2025

Fund Letters

Invesco Small Cap Value Fund

SAIA

Saia Inc

Industrials

Ground Transportation

Bull

NASDAQ

Cyclical, Freight, Logistics, Ltl, Network expansion, Transportation, Trucking

Dec 31, 2024

Fund Letters

Invesco Small Cap Value Fund

MSM

MSC Industrial Direct Co., Inc.

Industrials

Trading Companies & Distributors

Bull

NYSE

Cyclical, end markets, Industrial distribution, Maintenance Products, Metalworking, MRO, North America, Value

Dec 31, 2024

Fund Letters

Invesco Small Cap Value Fund

ONTO

Onto Innovation Inc.

Information Technology

Semiconductors & Semiconductor Equipment

Bull

NYSE

AI, Defect Inspection, manufacturing, Metrology, Microelectronics, process control, semiconductor equipment, Value, Yield Enhancement

Dec 31, 2024

Fund Letters

Invesco Small Cap Value Fund

ICLR

ICON plc

Health Care

Life Sciences Tools & Services

Bull

NASDAQ

Biotech, Clinical trials, contract research, Cro, drug development, Healthcare Outsourcing, oligopoly, Pharmaceutical Services, Value

Sep 30, 2024

Fund Letters

Invesco Small Cap Value Fund

BECN

Beacon Roofing Supply

Capital Goods

Trading Companies & Distributors

Bull

NASDAQ

Building Products, construction, Distributor, North America, Roofing, Value, Weather Impact

Sep 30, 2024

Fund Letters

Invesco Small Cap Value Fund

RMBS

Rambus

Technology Hardware & Equipment

Semiconductors

Bull

NASDAQ

AI, Artificial Intelligence, Cyclical, Global, memory chips, semiconductors, technology, Value

Sep 30, 2024

Fund Letters

Invesco Small Cap Value Fund

QDEL

QuidelOrtho

Health Care Equipment & Services

Health Care Equipment

Bull

NASDAQ

CEO transition, diagnostics, healthcare, Medical devices, operational efficiency, turnaround, Value

Jun 30, 2024

Fund Letters

Invesco Small Cap Value Fund

Globe Life Inc

Financials

Life & Health Insurance

Bull

NYSE

contrarian, Insurance, life insurance, recovery, Regulatory Overhang, Supplemental Health, Value

Jun 30, 2024

Fund Letters

Invesco Small Cap Value Fund

DAVA

Endava plc

Information Technology

IT Consulting & Other Services

Bull

NYSE

Artificial Intelligence, Cloud software, Cyclical, Digitization, IT services, Technology Consulting, UK

Jun 30, 2024

Fund Letters

Invesco Small Cap Value Fund

EPAM

EPAM Systems Inc

Information Technology

IT Consulting & Other Services

Bull

NYSE

cash generation, Digital Platform Engineering, Guidance cut, Software Development, Technology Services, Value

TICKER	COMMENTARY
DAR	The company is a global producer of sustainable ingredients, converting animal by-products and organic waste into value-added products such as feed ingredients, food ingredients and renewable fuel feedstocks. The company has been facing pressure in its renewable diesel margins, which we believe has created an attractive valuation opportunity given other avenues for growth, including high margin health ingredients such as collagen and expansion of animal and pet nutrition.
CON	The company provides occupational health services in the US. With an attractive geographic footprint, we believe Concentra has a solid growth profile and ability to generate free cash flow that has been underappreciated by the market, resulting in a disconnect between its valuation and our estimate of intrinsic value.
ERO	The copper miner reported strong earnings and free cash flow generation due to improving production performance and lower operating costs. Higher copper prices further boosted the shares, which have appreciated materially since we purchased the company. We sold the position to fund what we saw as more attractive opportunities in other areas.
BHE	The global electronics manufacturing services company has in our view executed well, exceeding analysts' earnings estimates for a series of quarters. The company has also built exposure to more resilient, higher margin end markets such as medical and aerospace & defense. Given the stock's recent strength, we opted to sell the position to fund other opportunities we believe have better upside to intrinsic value.
AAOI	The company designs and manufactures fiber-optic networking products that enable high-speed data transmission. The firm reported a double-digit increase in quarterly revenues and provided robust revenue guidance amid strong demand for its optical transceivers and other networking equipment.
LITE	Shares of this market-leading designer and manufacturer of innovative optical and photonic products rose in the first quarter, driven by apparent investor enthusiasm for its AI-driven growth potential.
MKSI	The company supplies advanced instruments, subsystems and process-control solutions for semiconductor manufacturing and other industrial uses. Demand has been strong, supported by higher capital spending tied to AI and advanced computing infrastructure.
ICLR	Two sequential developments drove a drop in the shares of this global contract research organization (CRO). Along with peers and companies across multiple sectors, ICON faced a broad investor selloff seemingly driven by concerns about the potential impact of AI on traditional business models. Shortly thereafter, ICON disclosed that its audit committee had initiated an internal accounting review of revenue recognition practices for the prior three years. Management indicated that any overstatement is expected to be less than 2% of revenues in two previously reported years, with no effect on cash flows.
QDEL	This manufacturer of diagnostic health care products reported better-than-expected earnings but provided weaker-than-expected guidance for the full year.
EXPE	Shares of the online travel company fell after management's full-year revenue guidance was muted relative to elevated expectations, as cost-cutting benefits subsided and spending on AI and other growth initiatives increased. Management's cautious outlook was compounded by apparent fears about the potential long-term negative effect of AI on online travel companies.

TICKER

COMMENTARY

DAR

The company is a global producer of sustainable ingredients, converting animal by-products and organic waste into value-added products such as feed ingredients, food ingredients and renewable fuel feedstocks. The company has been facing pressure in its renewable diesel margins, which we believe has created an attractive valuation opportunity given other avenues for growth, including high margin health ingredients such as collagen and expansion of animal and pet nutrition.

CON

The company provides occupational health services in the US. With an attractive geographic footprint, we believe Concentra has a solid growth profile and ability to generate free cash flow that has been underappreciated by the market, resulting in a disconnect between its valuation and our estimate of intrinsic value.

ERO

The copper miner reported strong earnings and free cash flow generation due to improving production performance and lower operating costs. Higher copper prices further boosted the shares, which have appreciated materially since we purchased the company. We sold the position to fund what we saw as more attractive opportunities in other areas.

BHE

The global electronics manufacturing services company has in our view executed well, exceeding analysts' earnings estimates for a series of quarters. The company has also built exposure to more resilient, higher margin end markets such as medical and aerospace & defense. Given the stock's recent strength, we opted to sell the position to fund other opportunities we believe have better upside to intrinsic value.

AAOI

The company designs and manufactures fiber-optic networking products that enable high-speed data transmission. The firm reported a double-digit increase in quarterly revenues and provided robust revenue guidance amid strong demand for its optical transceivers and other networking equipment.

LITE

Shares of this market-leading designer and manufacturer of innovative optical and photonic products rose in the first quarter, driven by apparent investor enthusiasm for its AI-driven growth potential.

MKSI

The company supplies advanced instruments, subsystems and process-control solutions for semiconductor manufacturing and other industrial uses. Demand has been strong, supported by higher capital spending tied to AI and advanced computing infrastructure.

ICLR

Two sequential developments drove a drop in the shares of this global contract research organization (CRO). Along with peers and companies across multiple sectors, ICON faced a broad investor selloff seemingly driven by concerns about the potential impact of AI on traditional business models. Shortly thereafter, ICON disclosed that its audit committee had initiated an internal accounting review of revenue recognition practices for the prior three years. Management indicated that any overstatement is expected to be less than 2% of revenues in two previously reported years, with no effect on cash flows.

QDEL

This manufacturer of diagnostic health care products reported better-than-expected earnings but provided weaker-than-expected guidance for the full year.

EXPE

Shares of the online travel company fell after management's full-year revenue guidance was muted relative to elevated expectations, as cost-cutting benefits subsided and spending on AI and other growth initiatives increased. Management's cautious outlook was compounded by apparent fears about the potential long-term negative effect of AI on online travel companies.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
No Recent Buys Data

Ticker

Put/Call

Amount Bought

Shares Bought

% Change

Weight %

No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
No Recent Sells Data

Ticker

Put/Call

Amount Sold

Shares Sold

% Change

Weight %

Status

No Recent Sells Data

Industry	Prev Quarter %	Current Quarter %	Change
No industry data available

Industry

Prev Quarter %

Current Quarter %

Change

No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 31st March 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Small Caps

Value

AI

Semiconductors

Financials

Value

Small Caps

AI

Value

Small Caps

AI

Value

Small Caps

Value

Small Caps

Semiconductors

Value

AI

Semiconductors

AI

Value

Investor Pitches

Current Portfolio as of ( 31st March 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Jonathan Edwards Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

Join for free and get access to the buyside

Get insights from the world's most influential hedge fund investors direct to your inbox

Follow Us On:

Subscribe to receive email notification and updates for:

Invesco Small Cap Value Fund