abrdn U.S. Small Cap Equity Fund

Investor Summary

Scott Eun serves as Portfolio Manager since 2024, bringing over 14 years of industry experience along with an MBA from Wharton and Economics degree from Harvard. Chris Colarik leads as Head of US Small Cap since 2023, responsible for US Small and Smid Cap strategies with over two decades of investment experience and CFA Institute membership. The management team demonstrates strong academic credentials and extensive small-cap investment expertise. A significant management transition occurred in October 2023 when abrdn Inc. replaced Tekla Capital Management LLC as the fund's investment manager, bringing new leadership and investment approach to the strategy.

Fund Strategy

The abrdn U.S. Small Cap Equity Fund employs a high conviction, active approach designed to deliver outperformance over time with strong risk-adjusted returns. The strategy focuses on companies at the forefront of new technologies and evolving trends within the small-cap universe, offering potential for higher returns. The fund maintains a concentrated portfolio approach with 56 securities, emphasizing long-term capital appreciation through investments in U.S. small-cap companies with market capitalizations similar to Russell 2000 Index constituents. The investment process combines fundamental analysis with active portfolio management to identify undervalued opportunities in the small-cap space.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
11.39%	26.19%	27.48%

Executive Summary

The abrdn U.S. Small Cap Equity Fund gained 26.31% in Q2 2026, outperforming the Russell 2000 Index. Strong performance was driven by AI-related holdings including JFrog, which benefited from surging demand for its software platform amid rapid adoption of AI-driven coding agents, and Cohu, which investors recognized for its unique role in the AI and high-performance computing supply chain. Materion Corporation outperformed on robust demand across aerospace, defense, and semiconductor end markets. The fund initiated positions in Blue Bird Corporation, Cohu, Travere Therapeutics, and Universal Technical Institute, while exiting Catalyst Pharmaceuticals, Donnelley Financial Solution, and e.l.f. Beauty. The manager views ongoing Middle East tensions and potential stagflation as key risks but remains optimistic about long-term opportunities in small caps, particularly from secular trends including infrastructure investment, technological innovation, and supply chain reshoring. The strategy emphasizes higher-quality businesses to provide resilience against macroeconomic headwinds while maintaining a patient, selective approach to capitalize on valuation dislocations.

Core Thesis

The fund invests in higher-quality small-cap businesses positioned to benefit from secular trends including AI adoption, semiconductor recovery, defense spending, infrastructure investment, technological innovation, and supply chain reshoring, while maintaining a disciplined, fundamental approach to capitalize on valuation dislocations created by market volatility and geopolitical uncertainty.

Forward Outlook

The manager remains optimistic about the long-term outlook for small- and mid-cap equities, which are well positioned to benefit from secular trends such as increased infrastructure investment, accelerating technological innovation, and the reshoring of supply chains. While recent months have been defined by sweeping changes in global trade dynamics and geopolitical conflict creating short-term challenges, the manager believes these conditions create opportunities for disciplined, fundamental investors. The strategy's emphasis on higher-quality businesses provides resilience against macroeconomic headwinds. The manager believes patience, selectivity, and a long-term focus remain critical as market volatility creates opportunities for differentiated outcomes over the cycle.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 27 2026	2026 Q2	ATMU, BLBD, COHU, CPRX, CRDO, DFIN, ELF, FROG, MGY, MTRN, TVTX, UTI	AI, Biotechnology, defense, Infrastructure Spending, Onshoring, semiconductors, small caps, US	FROG MTRN COHU BLBD TVTX UTI	The fund gained 26.31% in Q2 2026, outperforming its benchmark on strong AI-related holdings including JFrog and Cohu, plus defense and semiconductor exposure through Materion. The manager initiated positions in school bus manufacturer Blue Bird and rare disease specialist Travere Therapeutics. Despite Middle East tensions and stagflation concerns, the manager remains optimistic on small caps benefiting from AI adoption, infrastructure spending, and supply chain reshoring.
Apr 21 2026	2026 Q1	ADMA, ATEC, ECG, GTX, KWR, MGY, MIR, PATK, QTWO, SHOO, VIAV	energy, Geopolitical, infrastructure, small caps, technology, US	-	Small cap fund gained 1.13% in volatile Q1 2026, benefiting from data center growth and energy price rises amid Middle East tensions. Added nuclear and industrial positions while facing AI disruption headwinds. Despite macro challenges from Iran war and tariff uncertainty, manager remains optimistic on secular trends including infrastructure investment and supply chain reshoring creating long-term opportunities.
Jan 29 2026	2025 Q4	ARCB, ARQT, ATEC, ATZ.TO, AZZ, CARG, CORT, ELF, HLIO, ITGR, LRN, LZB, OSW, PI, REVG, SUPN, TRNO, VIAV	healthcare, industrials, infrastructure, Quality, small caps, technology	CORT	The fund underperformed despite gains, with biotech and beauty detractors offset by medical device and retail winners. New positions target infrastructure, reshoring, and technology adoption themes. Despite government shutdown headwinds, the manager remains optimistic on small-cap prospects driven by secular trends in infrastructure investment, technological innovation, and supply chain reshoring.
Oct 28 2025	2025 Q3	ANIP, DCO, EAT, FIVN, GPK, IAS, KBH, KN, KNSA, LGND, MTRN, NOG, QTWO, SMRT, SNEX, VERX, VIAV, WNS	Biotechnology, defense, infrastructure, Onshoring, Quality, small caps, US	-	abrdn's US small-cap fund gained 5.23% in Q3 but lagged the Russell 2000's 12.39% return. Stock selection was mixed with Ligand Pharmaceuticals and Materion Corporation contributing while Q2 Holdings and Brinker International detracted. The manager remains optimistic on domestic small-caps, emphasizing quality businesses positioned for secular tailwinds from infrastructure investment, innovation, and supply chain reshoring.
Jul 27 2025	2025 Q2	ABCB, ADMA, AHR, ATZ.TO, CHEF, CNMD, CORT, ELF, FIBK, FOLD, GPK, MMSI, REVG, SKWD, TMX.TO	Beauty, healthcare, infrastructure, Onshoring, Quality, small caps, tariffs, Trade Policy	-	The fund underperformed amid trade policy uncertainty but maintains optimism on small-cap opportunities. Trump's tariff policies created volatility before negotiated pauses, impacting holdings like Merit Medical while benefiting others like e.l.f. Beauty. The strategy focuses on quality businesses positioned for secular trends including infrastructure investment, technological innovation, and supply chain reshoring despite macroeconomic headwinds.
Mar 31 2025	2025 Q1	AZEK, COHU, CORT, HEES, JHX, LOB, LRN, MWA, REVG, SHOO, URI, VERX, WERN, WK	infrastructure, M&A, Quality, small caps, tariffs, Trade Policy, water	CORT HEES LRN VERX SHOO WK MWA REVG	abrdn's small-cap fund outperformed despite Q1 decline, benefiting from quality stock selection including Corcept Therapeutics and Stride. New Trump trade policy created volatility but team maintains disciplined high-quality focus. Long-term outlook positive given depressed small-cap valuations, expected deregulation, M&A tailwinds, and eventual Fed cuts, though near-term uncertainty persists from trade negotiations.
Jun 30 2024	2024 Q2	ATKR, ATMU, BOOT, CORT, EAT, FIVN, FROG, HEES, ONTO, PRFT	AI, Fed, Quality, rates, small caps, technology, value	CORT ATMU FROG	Fund outperformed Russell 2000 by 152bp through stock selection despite -1.76% return. Fed held rates at 5.25-5.50% with only one cut expected in 2024. Small caps trade at significant discount to large caps and positioned to benefit from market broadening beyond Magnificent Seven, M&A activity, and quality advantages in elevated rate environment.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 27 2026

2026 Q2

ATMU, BLBD, COHU, CPRX, CRDO, DFIN, ELF, FROG, MGY, MTRN, TVTX, UTI

AI, Biotechnology, defense, Infrastructure Spending, Onshoring, semiconductors, small caps, US

FROG
MTRN
COHU
BLBD
TVTX
UTI

The fund gained 26.31% in Q2 2026, outperforming its benchmark on strong AI-related holdings including JFrog and Cohu, plus defense and semiconductor exposure through Materion. The manager initiated positions in school bus manufacturer Blue Bird and rare disease specialist Travere Therapeutics. Despite Middle East tensions and stagflation concerns, the manager remains optimistic on small caps benefiting from AI adoption, infrastructure spending, and supply chain reshoring.

Apr 21 2026

2026 Q1

ADMA, ATEC, ECG, GTX, KWR, MGY, MIR, PATK, QTWO, SHOO, VIAV

energy, Geopolitical, infrastructure, small caps, technology, US

Small cap fund gained 1.13% in volatile Q1 2026, benefiting from data center growth and energy price rises amid Middle East tensions. Added nuclear and industrial positions while facing AI disruption headwinds. Despite macro challenges from Iran war and tariff uncertainty, manager remains optimistic on secular trends including infrastructure investment and supply chain reshoring creating long-term opportunities.

Jan 29 2026

2025 Q4

ARCB, ARQT, ATEC, ATZ.TO, AZZ, CARG, CORT, ELF, HLIO, ITGR, LRN, LZB, OSW, PI, REVG, SUPN, TRNO, VIAV

healthcare, industrials, infrastructure, Quality, small caps, technology

CORT

The fund underperformed despite gains, with biotech and beauty detractors offset by medical device and retail winners. New positions target infrastructure, reshoring, and technology adoption themes. Despite government shutdown headwinds, the manager remains optimistic on small-cap prospects driven by secular trends in infrastructure investment, technological innovation, and supply chain reshoring.

Oct 28 2025

2025 Q3

ANIP, DCO, EAT, FIVN, GPK, IAS, KBH, KN, KNSA, LGND, MTRN, NOG, QTWO, SMRT, SNEX, VERX, VIAV, WNS

Biotechnology, defense, infrastructure, Onshoring, Quality, small caps, US

abrdn's US small-cap fund gained 5.23% in Q3 but lagged the Russell 2000's 12.39% return. Stock selection was mixed with Ligand Pharmaceuticals and Materion Corporation contributing while Q2 Holdings and Brinker International detracted. The manager remains optimistic on domestic small-caps, emphasizing quality businesses positioned for secular tailwinds from infrastructure investment, innovation, and supply chain reshoring.

Jul 27 2025

2025 Q2

ABCB, ADMA, AHR, ATZ.TO, CHEF, CNMD, CORT, ELF, FIBK, FOLD, GPK, MMSI, REVG, SKWD, TMX.TO

Beauty, healthcare, infrastructure, Onshoring, Quality, small caps, tariffs, Trade Policy

The fund underperformed amid trade policy uncertainty but maintains optimism on small-cap opportunities. Trump's tariff policies created volatility before negotiated pauses, impacting holdings like Merit Medical while benefiting others like e.l.f. Beauty. The strategy focuses on quality businesses positioned for secular trends including infrastructure investment, technological innovation, and supply chain reshoring despite macroeconomic headwinds.

Mar 31 2025

2025 Q1

AZEK, COHU, CORT, HEES, JHX, LOB, LRN, MWA, REVG, SHOO, URI, VERX, WERN, WK

infrastructure, M&A, Quality, small caps, tariffs, Trade Policy, water

CORT
HEES
LRN
VERX
SHOO
WK
MWA
REVG

abrdn's small-cap fund outperformed despite Q1 decline, benefiting from quality stock selection including Corcept Therapeutics and Stride. New Trump trade policy created volatility but team maintains disciplined high-quality focus. Long-term outlook positive given depressed small-cap valuations, expected deregulation, M&A tailwinds, and eventual Fed cuts, though near-term uncertainty persists from trade negotiations.

Jun 30 2024

2024 Q2

ATKR, ATMU, BOOT, CORT, EAT, FIVN, FROG, HEES, ONTO, PRFT

AI, Fed, Quality, rates, small caps, technology, value

CORT
ATMU
FROG

Fund outperformed Russell 2000 by 152bp through stock selection despite -1.76% return. Fed held rates at 5.25-5.50% with only one cut expected in 2024. Small caps trade at significant discount to large caps and positioned to benefit from market broadening beyond Magnificent Seven, M&A activity, and quality advantages in elevated rate environment.

QUARTER	THEMES	TAGS
2026 Q2	AI The rapid adoption of AI-driven coding agents led to a surge in demand for JFrog's software platform. Investors increasingly recognized Cohu's unique role in the AI and high-performance computing supply chain. Strong demand for Credo Technology Group's connectivity solutions used in data centers reflected continued AI infrastructure buildout.	AI Infrastructure Data Centers High-performance Computing Connectivity
	Semiconductors Materion Corporation benefited from robust demand across its semiconductor end markets. Cohu is well positioned to benefit from a recovery in its core semiconductor end markets and is expanding exposure to high-performance computing with recent wins in high-bandwidth-memory inspection and advanced handler solutions driving growth acceleration.	Semiconductor Equipment High-bandwidth Memory Testing Equipment Inspection
	Defense Materion Corporation's shares outperformed, fueled by robust demand across its core aerospace and defense end markets. The company is benefiting from sustained strength in defense spending and aerospace applications.	Aerospace Defense Spending Defense Components
	Oil Magnolia Oil & Gas' shares declined along with commodity prices. The conflict in the Middle East led to the blockage of most oil shipments via the Strait of Hormuz, which led to volatile crude oil prices. Efforts to reopen the Strait later in the quarter and hopes that the parties could end this conflict improved sentiment and pushed oil prices lower.	Crude Oil Oil Prices Middle East Conflict Strait of Hormuz
	Onshoring The manager believes the small-cap asset class is well positioned to benefit from secular trends such as the reshoring of supply chains. This represents a long-term structural opportunity for domestic small- and mid-cap equities.	Supply Chains Reshoring Domestic Manufacturing
	Infrastructure Spending The manager believes the small-cap asset class is well positioned to benefit from secular trends such as increased infrastructure investment. This represents a long-term structural opportunity for domestic small- and mid-cap equities.	Infrastructure Investment Capital Spending
	Rare Diseases Travere Therapeutics is a biopharmaceutical company specializing in rare kidney and metabolic disorders. The company's foundational drug was recently approved for an additional kidney disease, while other promising clinical candidates remain in the pipeline. The manager believes the combination of these opportunities with strong commercial execution could support growth.	Biotechnology Kidney Disease Drug Approval Clinical Pipeline
2026 Q1	Data Centers Fund benefited from data center ecosystem growth through holdings like Viavi Solutions and Everus Construction Group. Garrett Motion was added for its diversification into data center cooling applications.	Data Centers Infrastructure Cooling
	Nuclear Initiated position in Mirion Technologies to benefit from the accelerating nuclear renaissance as global capacity expands and the installed base continues to age.	Nuclear Renaissance Radiation Detection
	Oil Magnolia Oil & Gas benefited from rising crude oil prices driven by geopolitical supply concerns and Iran war escalation. Oil prices rose sharply due to regional tensions and supply disruptions.	Oil Geopolitical Supply
	AI Q2 Holdings faced continued investor concerns regarding potential artificial intelligence-driven disruption in their business model.	AI Disruption Financial Technology
	Onshoring Manager believes small caps are well positioned to benefit from secular trends including the reshoring of supply chains as part of the long-term outlook.	Onshoring Supply Chains Secular Trends
2025 Q4	Dividends The fund follows a Dogs of the Dow strategy, investing approximately 50% of assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks. The strategy systematically targets dividend yield as the primary selection criterion for equity investments.	Dividend Yield DJIA Income
2025 Q3	Small Caps The fund focuses exclusively on US small-cap stocks, with performance measured against the Russell 2000 Index. The manager remains optimistic about the long-term outlook for domestic small-cap stocks despite recent market turbulence. The strategy emphasizes higher-quality businesses that offer resilience to mitigate macroeconomic headwinds.	Russell 2000 Quality Resilience Domestic Volatility
	Infrastructure Spending The manager identifies large-scale domestic infrastructure investments as a key secular trend presenting compelling opportunities for smaller companies. Everus Construction Group was highlighted as a beneficiary, being a leading provider of specialized engineering and construction contracting services positioned to benefit from these investments.	Construction Engineering Domestic Investment Secular
	Onshoring The reshoring of supply chains is identified as one of the secular trends presenting compelling opportunities for smaller companies. This theme is supported by trade policy developments and represents a structural tailwind for the strategy's focus on domestic small-cap companies.	Supply Chains Manufacturing Domestic Secular Trade
	Defense Ducommun, an aerospace and defense company, was added to the portfolio based on heightened geopolitical tensions creating a favorable operating environment. The manager believes the combination of geopolitical tensions, improvements in Boeing's production rates, and recent margin-enhancement initiatives could benefit the company.	Aerospace Geopolitical Boeing Margins Tensions
	Biotechnology The portfolio includes exposure to biotechnology through companies like Kiniksa Pharmaceuticals and ANI Pharmaceuticals. Kiniksa is developing innovative treatments for rare diseases with strong growth in autoinflammatory conditions, while ANI showed strong sales of a key rare disease drug, boosting confidence in its strategic shift away from generic drugs.	Rare Diseases Pharmaceuticals Innovation Growth Pipeline
2025 Q2	Trade Policy President Trump's sweeping tariff policies initially weighed on investor sentiment, with China facing over 100% US duties. A 90-day pause was announced for most tariffs as part of trade negotiations, followed by US-China agreement on substantial reciprocal tariff reductions. The US doubled tariffs on global steel and aluminum imports to 50%, adding to trade policy uncertainty.	Tariffs China Steel Aluminum Negotiations
	Small Caps The fund focuses on domestic small-cap stocks with secular trends like infrastructure investment, technological innovation, and supply chain reshoring presenting compelling opportunities. The strategy emphasizes higher-quality businesses that offer resilience against macroeconomic headwinds while maintaining ability to navigate volatile markets and grow sustainably through economic cycles.	Quality Resilience Cycles Opportunities Growth
	Onshoring The reshoring of supply chains is identified as one of the secular trends presenting compelling opportunities for smaller companies. This structural shift supports the long-term outlook for domestic small-cap stocks as companies bring operations back to the United States.	Supply Chains Manufacturing Domestic Structural Opportunities
	Infrastructure Spending Increased infrastructure investment is highlighted as a secular trend that presents compelling opportunities for smaller companies. This structural tailwind supports the long-term optimistic outlook for domestic small-cap stocks in the current environment.	Investment Secular Opportunities Structural Tailwinds
2025 Q1	Trade Policy Trump administration announced new trade policy with 10% tariffs on all imports plus additional country-specific tariffs, followed by 90-day moratorium on additional tariffs except China while negotiations proceed. Significant market volatility resulted from concerns about macroeconomic slowdown and higher inflation.	Tariffs Trade China Negotiations Inflation
	Small Caps Long-term outlook for US small-cap stocks remains favorable with valuations depressed relative to larger companies. Expected benefits from de-regulation, increased M&A activity, and eventual Fed rate cuts should support smaller companies over time.	Valuations M&A Deregulation Rates Quality
	Water Initiated Mueller Water Products, a leading supplier of fire hydrants, valves and products for clean drinking water delivery. Company positioned to benefit from secular growth drivers including repair of aging water infrastructure.	Infrastructure Utilities Municipal Secular Growth
2024 Q2	Small Caps Small caps trade at a significant discount to large caps and are positioned to benefit from market broadening beyond the Magnificent Seven. Corporate balance sheets flush with cash often trigger M&A activity benefiting smaller companies. Higher quality small caps have structural advantages in elevated rate environments.	Small Caps Discount M&A Quality
	AI AI-related revenues drove outperformance for semiconductor companies like TSMC. Technology companies continued to outperform consensus expectations given strong AI growth prospects, though substantial investment costs remain an investor concern. Utilities benefited from increased electricity demand driven by the AI boom.	AI Semiconductors Technology Electricity
	Rates Fed kept rates at 23-year high of 5.25-5.50% for seventh consecutive time. Latest dot plot forecasts only one rate cut in 2024 versus three predicted in March. Higher rate environment creates structural advantages for higher-quality companies versus lower-quality peers.	Fed Rate Cuts Quality Monetary Policy

QUARTER

THEMES

AI

The rapid adoption of AI-driven coding agents led to a surge in demand for JFrog's software platform. Investors increasingly recognized Cohu's unique role in the AI and high-performance computing supply chain. Strong demand for Credo Technology Group's connectivity solutions used in data centers reflected continued AI infrastructure buildout.

AI Infrastructure Data Centers High-performance Computing Connectivity

Semiconductors

Materion Corporation benefited from robust demand across its semiconductor end markets. Cohu is well positioned to benefit from a recovery in its core semiconductor end markets and is expanding exposure to high-performance computing with recent wins in high-bandwidth-memory inspection and advanced handler solutions driving growth acceleration.

Semiconductor Equipment High-bandwidth Memory Testing Equipment Inspection

Defense

Materion Corporation's shares outperformed, fueled by robust demand across its core aerospace and defense end markets. The company is benefiting from sustained strength in defense spending and aerospace applications.

Aerospace Defense Spending Defense Components

Oil

Magnolia Oil & Gas' shares declined along with commodity prices. The conflict in the Middle East led to the blockage of most oil shipments via the Strait of Hormuz, which led to volatile crude oil prices. Efforts to reopen the Strait later in the quarter and hopes that the parties could end this conflict improved sentiment and pushed oil prices lower.

Crude Oil Oil Prices Middle East Conflict Strait of Hormuz

Onshoring

The manager believes the small-cap asset class is well positioned to benefit from secular trends such as the reshoring of supply chains. This represents a long-term structural opportunity for domestic small- and mid-cap equities.

Supply Chains Reshoring Domestic Manufacturing

Infrastructure Spending

The manager believes the small-cap asset class is well positioned to benefit from secular trends such as increased infrastructure investment. This represents a long-term structural opportunity for domestic small- and mid-cap equities.

Infrastructure Investment Capital Spending

Rare Diseases

Travere Therapeutics is a biopharmaceutical company specializing in rare kidney and metabolic disorders. The company's foundational drug was recently approved for an additional kidney disease, while other promising clinical candidates remain in the pipeline. The manager believes the combination of these opportunities with strong commercial execution could support growth.

Biotechnology Kidney Disease Drug Approval Clinical Pipeline

2026 Q1

Data Centers

Fund benefited from data center ecosystem growth through holdings like Viavi Solutions and Everus Construction Group. Garrett Motion was added for its diversification into data center cooling applications.

Data Centers Infrastructure Cooling

Nuclear

Initiated position in Mirion Technologies to benefit from the accelerating nuclear renaissance as global capacity expands and the installed base continues to age.

Nuclear Renaissance Radiation Detection

Oil

Magnolia Oil & Gas benefited from rising crude oil prices driven by geopolitical supply concerns and Iran war escalation. Oil prices rose sharply due to regional tensions and supply disruptions.

Oil Geopolitical Supply

AI

Q2 Holdings faced continued investor concerns regarding potential artificial intelligence-driven disruption in their business model.

AI Disruption Financial Technology

Onshoring

Manager believes small caps are well positioned to benefit from secular trends including the reshoring of supply chains as part of the long-term outlook.

Onshoring Supply Chains Secular Trends

2025 Q4

Dividends

The fund follows a Dogs of the Dow strategy, investing approximately 50% of assets in the 10 highest dividend-yielding Dow Jones Industrial Average stocks. The strategy systematically targets dividend yield as the primary selection criterion for equity investments.

Dividend Yield DJIA Income

2025 Q3

Small Caps

The fund focuses exclusively on US small-cap stocks, with performance measured against the Russell 2000 Index. The manager remains optimistic about the long-term outlook for domestic small-cap stocks despite recent market turbulence. The strategy emphasizes higher-quality businesses that offer resilience to mitigate macroeconomic headwinds.

Russell 2000 Quality Resilience Domestic Volatility

Infrastructure Spending

The manager identifies large-scale domestic infrastructure investments as a key secular trend presenting compelling opportunities for smaller companies. Everus Construction Group was highlighted as a beneficiary, being a leading provider of specialized engineering and construction contracting services positioned to benefit from these investments.

Construction Engineering Domestic Investment Secular

Onshoring

The reshoring of supply chains is identified as one of the secular trends presenting compelling opportunities for smaller companies. This theme is supported by trade policy developments and represents a structural tailwind for the strategy's focus on domestic small-cap companies.

Supply Chains Manufacturing Domestic Secular Trade

Defense

Ducommun, an aerospace and defense company, was added to the portfolio based on heightened geopolitical tensions creating a favorable operating environment. The manager believes the combination of geopolitical tensions, improvements in Boeing's production rates, and recent margin-enhancement initiatives could benefit the company.

Aerospace Geopolitical Boeing Margins Tensions

Biotechnology

The portfolio includes exposure to biotechnology through companies like Kiniksa Pharmaceuticals and ANI Pharmaceuticals. Kiniksa is developing innovative treatments for rare diseases with strong growth in autoinflammatory conditions, while ANI showed strong sales of a key rare disease drug, boosting confidence in its strategic shift away from generic drugs.

Rare Diseases Pharmaceuticals Innovation Growth Pipeline

2025 Q2

Trade Policy

President Trump's sweeping tariff policies initially weighed on investor sentiment, with China facing over 100% US duties. A 90-day pause was announced for most tariffs as part of trade negotiations, followed by US-China agreement on substantial reciprocal tariff reductions. The US doubled tariffs on global steel and aluminum imports to 50%, adding to trade policy uncertainty.

Tariffs China Steel Aluminum Negotiations

Small Caps

The fund focuses on domestic small-cap stocks with secular trends like infrastructure investment, technological innovation, and supply chain reshoring presenting compelling opportunities. The strategy emphasizes higher-quality businesses that offer resilience against macroeconomic headwinds while maintaining ability to navigate volatile markets and grow sustainably through economic cycles.

Quality Resilience Cycles Opportunities Growth

Onshoring

The reshoring of supply chains is identified as one of the secular trends presenting compelling opportunities for smaller companies. This structural shift supports the long-term outlook for domestic small-cap stocks as companies bring operations back to the United States.

Supply Chains Manufacturing Domestic Structural Opportunities

Infrastructure Spending

Increased infrastructure investment is highlighted as a secular trend that presents compelling opportunities for smaller companies. This structural tailwind supports the long-term optimistic outlook for domestic small-cap stocks in the current environment.

Investment Secular Opportunities Structural Tailwinds

2025 Q1

Trade Policy

Trump administration announced new trade policy with 10% tariffs on all imports plus additional country-specific tariffs, followed by 90-day moratorium on additional tariffs except China while negotiations proceed. Significant market volatility resulted from concerns about macroeconomic slowdown and higher inflation.

Tariffs Trade China Negotiations Inflation

Small Caps

Long-term outlook for US small-cap stocks remains favorable with valuations depressed relative to larger companies. Expected benefits from de-regulation, increased M&A activity, and eventual Fed rate cuts should support smaller companies over time.

Valuations M&A Deregulation Rates Quality

Water

Initiated Mueller Water Products, a leading supplier of fire hydrants, valves and products for clean drinking water delivery. Company positioned to benefit from secular growth drivers including repair of aging water infrastructure.

Infrastructure Utilities Municipal Secular Growth

2024 Q2

Small Caps

Small caps trade at a significant discount to large caps and are positioned to benefit from market broadening beyond the Magnificent Seven. Corporate balance sheets flush with cash often trigger M&A activity benefiting smaller companies. Higher quality small caps have structural advantages in elevated rate environments.

Small Caps Discount M&A Quality

AI

AI-related revenues drove outperformance for semiconductor companies like TSMC. Technology companies continued to outperform consensus expectations given strong AI growth prospects, though substantial investment costs remain an investor concern. Utilities benefited from increased electricity demand driven by the AI boom.

AI Semiconductors Technology Electricity

Rates

Fed kept rates at 23-year high of 5.25-5.50% for seventh consecutive time. Latest dot plot forecasts only one rate cut in 2024 versus three predicted in March. Higher rate environment creates structural advantages for higher-quality companies versus lower-quality peers.

Fed Rate Cuts Quality Monetary Policy

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jul 27, 2026	Fund Letters	abrdn U.S. Small Cap Equity Fund	FROG	JFrog Ltd.	Software - Application	Application Software	Bull	NASDAQ	AI-driven Coding, Application Software, Artificial Intelligence, Developer Tools, Devops, SaaS, software platform, technology	Login
Jul 27, 2026	Fund Letters	abrdn U.S. Small Cap Equity Fund	MTRN	Materion Corporation	Other Industrial Metals & Mining	Specialty Chemicals	Bull	New York Stock Exchange	advanced materials, Aerospace, Defense, high-performance materials, Multi-Industry Exposure, semiconductors, specialty chemicals	Login
Jul 27, 2026	Fund Letters	abrdn U.S. Small Cap Equity Fund	COHU	Cohu, Inc.	Semiconductor Equipment & Materials	Semiconductor Equipment	Bull	NASDAQ	AI infrastructure, Cyclical Recovery, data center, High-Bandwidth Memory, high-performance computing, Inspection Equipment, semiconductor equipment, Testing Equipment	Login
Jul 27, 2026	Fund Letters	abrdn U.S. Small Cap Equity Fund	BLBD	Blue Bird Corporation	Farm & Heavy Construction Machinery	Construction Machinery & Heavy Trucks	Bull	NASDAQ	Alternative Fuel, commercial vehicles, Electric Vehicles, Electrification, Fleet Modernization, Replacement Demand, School Buses, Transportation equipment	Login
Jul 27, 2026	Fund Letters	abrdn U.S. Small Cap Equity Fund	TVTX	Travere Therapeutics, Inc.	Biotechnology	Biotechnology	Bull	NASDAQ	biotechnology, Kidney Disorders, Label Expansion, Metabolic Disorders, Orphan drugs, pipeline development, rare diseases, Specialty pharma	Login
Jul 27, 2026	Fund Letters	abrdn U.S. Small Cap Equity Fund	UTI	Universal Technical Institute, Inc.	Education & Training Services	Specialized Consumer Services	Bull	New York Stock Exchange	Automotive training, For-Profit Education, Healthcare Training, Labor shortage, Skilled labor, Technical Training, Vocational Education, Workforce Development	Login
Jan 29, 2026	Fund Letters	Christopher Colarik	CORT	Corcept Therapeutics Incorporated	Health Care	Biotechnology	Bear	NASDAQ	biotechnology, drug approval, Pipeline Uncertainty, Regulatory risk	Login
Mar 31, 2025	Fund Letters	abrdn U.S. Small Cap Equity Fund	CORT	Corcept Therapeutics	Health Care	Biotechnology	Bull	NASDAQ	Addressable market, biotechnology, Clinical trials, drug development, therapeutics	Login
Mar 31, 2025	Fund Letters	abrdn U.S. Small Cap Equity Fund	HEES	H&E Equipment Services	Industrials	Trading Companies & Distributors	Bull	NASDAQ	acquisition target, Construction Equipment, Equipment Rental, industrial services, M&A	Login
Mar 31, 2025	Fund Letters	abrdn U.S. Small Cap Equity Fund	LRN	Stride	Consumer Discretionary	Diversified Consumer Services	Bull	NYSE	Digital Learning, earnings beat, Education Services, Guidance Raise, market share	Login
Mar 31, 2025	Fund Letters	abrdn U.S. Small Cap Equity Fund	VERX	Vertex	Information Technology	Software	Bear	NASDAQ	Free Cash Flow, growth investments, margin compression, SaaS, Tax software	Login
Mar 31, 2025	Fund Letters	abrdn U.S. Small Cap Equity Fund	SHOO	Steven Madden	Consumer Discretionary	Textiles, Apparel & Luxury Goods	Bear	NASDAQ	Consumer Discretionary, Footwear, Import Costs, tariffs, trade policy	Login
Mar 31, 2025	Fund Letters	abrdn U.S. Small Cap Equity Fund	WK	Workiva	Information Technology	Software	Bear	NYSE	Compliance Reporting, ESG Software, Regulatory risk, SaaS, Sustainability	Login
Mar 31, 2025	Fund Letters	abrdn U.S. Small Cap Equity Fund	MWA	Mueller Water Products	Industrials	Machinery	Bull	NYSE	capital investment, Fire Hydrants, Municipal Infrastructure, secular growth, Water infrastructure	Login
Mar 31, 2025	Fund Letters	abrdn U.S. Small Cap Equity Fund	REVG	REV Group	Industrials	Machinery	Bull	NYSE	Ambulances, Fire Engines, market leader, operational improvements, Specialty Vehicles	Login
Jun 30, 2024	Fund Letters	abrdn U.S. Small Cap Equity Fund	CORT	Corcept Therapeutics	Health Care	Biotechnology	Bull	NASDAQ	biotechnology, Commercial Stage, Cortisol, Cushing's Syndrome, drug development, market penetration, pharmaceuticals, Specialty therapeutics	Login
Jun 30, 2024	Fund Letters	abrdn U.S. Small Cap Equity Fund	ATMU	Atmus Filtration Technologies	Industrials	Industrial Machinery	Bull	NYSE	Air standards, environmental regulations, Filtration systems, Heavy-duty trucks, industrial machinery, manufacturing, Product Portfolio, Research development	Login
Jun 30, 2024	Fund Letters	abrdn U.S. Small Cap Equity Fund	FROG	JFrog	Information Technology	Software	Bull	NASDAQ	Binary management, Devops, Platform provider, SaaS, Software, Software builds, Software deployment, technology infrastructure	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jul 27, 2026

Fund Letters

abrdn U.S. Small Cap Equity Fund

FROG

JFrog Ltd.

Software - Application

Application Software

Bull

NASDAQ

AI-driven Coding, Application Software, Artificial Intelligence, Developer Tools, Devops, SaaS, software platform, technology

Jul 27, 2026

Fund Letters

abrdn U.S. Small Cap Equity Fund

MTRN

Materion Corporation

Other Industrial Metals & Mining

Specialty Chemicals

Bull

New York Stock Exchange

advanced materials, Aerospace, Defense, high-performance materials, Multi-Industry Exposure, semiconductors, specialty chemicals

Jul 27, 2026

Fund Letters

abrdn U.S. Small Cap Equity Fund

COHU

Cohu, Inc.

Semiconductor Equipment & Materials

Semiconductor Equipment

Bull

NASDAQ

AI infrastructure, Cyclical Recovery, data center, High-Bandwidth Memory, high-performance computing, Inspection Equipment, semiconductor equipment, Testing Equipment

Jul 27, 2026

Fund Letters

abrdn U.S. Small Cap Equity Fund

BLBD

Blue Bird Corporation

Farm & Heavy Construction Machinery

Construction Machinery & Heavy Trucks

Bull

NASDAQ

Alternative Fuel, commercial vehicles, Electric Vehicles, Electrification, Fleet Modernization, Replacement Demand, School Buses, Transportation equipment

Jul 27, 2026

Fund Letters

abrdn U.S. Small Cap Equity Fund

TVTX

Travere Therapeutics, Inc.

Biotechnology

Bull

NASDAQ

biotechnology, Kidney Disorders, Label Expansion, Metabolic Disorders, Orphan drugs, pipeline development, rare diseases, Specialty pharma

Jul 27, 2026

Fund Letters

abrdn U.S. Small Cap Equity Fund

UTI

Universal Technical Institute, Inc.

Education & Training Services

Specialized Consumer Services

Bull

New York Stock Exchange

Automotive training, For-Profit Education, Healthcare Training, Labor shortage, Skilled labor, Technical Training, Vocational Education, Workforce Development

Jan 29, 2026

Fund Letters

Christopher Colarik

CORT

Corcept Therapeutics Incorporated

Health Care

Biotechnology

Bear

NASDAQ

biotechnology, drug approval, Pipeline Uncertainty, Regulatory risk

Mar 31, 2025

Fund Letters

abrdn U.S. Small Cap Equity Fund

CORT

Corcept Therapeutics

Health Care

Biotechnology

Bull

NASDAQ

Addressable market, biotechnology, Clinical trials, drug development, therapeutics

Mar 31, 2025

Fund Letters

abrdn U.S. Small Cap Equity Fund

HEES

H&E Equipment Services

Industrials

Trading Companies & Distributors

Bull

NASDAQ

acquisition target, Construction Equipment, Equipment Rental, industrial services, M&A

Mar 31, 2025

Fund Letters

abrdn U.S. Small Cap Equity Fund

LRN

Stride

Consumer Discretionary

Diversified Consumer Services

Bull

NYSE

Digital Learning, earnings beat, Education Services, Guidance Raise, market share

Mar 31, 2025

Fund Letters

abrdn U.S. Small Cap Equity Fund

VERX

Vertex

Information Technology

Software

Bear

NASDAQ

Free Cash Flow, growth investments, margin compression, SaaS, Tax software

Mar 31, 2025

Fund Letters

abrdn U.S. Small Cap Equity Fund

SHOO

Steven Madden

Consumer Discretionary

Textiles, Apparel & Luxury Goods

Bear

NASDAQ

Consumer Discretionary, Footwear, Import Costs, tariffs, trade policy

Mar 31, 2025

Fund Letters

abrdn U.S. Small Cap Equity Fund

Workiva

Information Technology

Software

Bear

NYSE

Compliance Reporting, ESG Software, Regulatory risk, SaaS, Sustainability

Mar 31, 2025

Fund Letters

abrdn U.S. Small Cap Equity Fund

MWA

Mueller Water Products

Industrials

Machinery

Bull

NYSE

capital investment, Fire Hydrants, Municipal Infrastructure, secular growth, Water infrastructure

Mar 31, 2025

Fund Letters

abrdn U.S. Small Cap Equity Fund

REVG

REV Group

Industrials

Machinery

Bull

NYSE

Ambulances, Fire Engines, market leader, operational improvements, Specialty Vehicles

Jun 30, 2024

Fund Letters

abrdn U.S. Small Cap Equity Fund

CORT

Corcept Therapeutics

Health Care

Biotechnology

Bull

NASDAQ

biotechnology, Commercial Stage, Cortisol, Cushing's Syndrome, drug development, market penetration, pharmaceuticals, Specialty therapeutics

Jun 30, 2024

Fund Letters

abrdn U.S. Small Cap Equity Fund

ATMU

Atmus Filtration Technologies

Industrials

Industrial Machinery

Bull

NYSE

Air standards, environmental regulations, Filtration systems, Heavy-duty trucks, industrial machinery, manufacturing, Product Portfolio, Research development

Jun 30, 2024

Fund Letters

abrdn U.S. Small Cap Equity Fund

FROG

JFrog

Information Technology

Software

Bull

NASDAQ

Binary management, Devops, Platform provider, SaaS, Software, Software builds, Software deployment, technology infrastructure

TICKER	COMMENTARY
FROG	shares of JFrog gained as the rapid adoption of AI-driven coding agents led to a surge in demand for the company's software platform.
MTRN	Materion Corporation's shares outperformed, fuelled by robust demand across its core aerospace, defence and semiconductor end markets.
COHU	Cohu's shares recorded a strong gain as investors increasingly recognised the company's unique role in the AI and high-performance computing supply chain. Cohu is a leading supplier of semiconductor testing and inspection equipment. We believe the company is well positioned to benefit from a recovery in its core end markets. It is also expanding exposure to high-performance computing, where recent wins in high-bandwidth-memory inspection and advanced handler solutions are driving an acceleration in growth.
MGY	Magnolia Oil & Gas' shares declined along with commodity prices, further weighed down by speculation that the company is considering a multi-billion-dollar acquisition.
ATMU	Atmus Filtration Technologies' shares underperformed primarily due to underwhelming aftermarket volumes and supply-chain disruptions stemming from the Middle East conflict.
CRDO	Shares of Credo Technology Group, which is ineligible for inclusion in the strategy due to market-capitalisation limitations, rose after the company signalled strong demand for its connectivity solutions used in data centres. So, our lack of exposure to the stock was unfavourable.
BLBD	Blue Bird Corporation is a leading designer and manufacturer of school buses. We believe the company is well positioned to benefit from elevated replacement demand given its strong execution and diverse powertrain portfolio.
TVTX	Travere Therapeutics is a biopharmaceutical company specialising in rare kidney and metabolic disorders. The company's foundational drug was recently approved for an additional kidney disease, while other promising clinical candidates remain in the pipeline. We believe the combination of these opportunities with strong commercial execution could support growth.
UTI	Universal Technical Institute is a leading provider of technical training for the automotive and healthcare industries. We believe the company's improved operating model and diversification into high-demand skilled labour can drive sustained growth.
CPRX	we sold Catalyst Pharmaceuticals after the announcement of its acquisition by Angelini Pharma.
DFIN	We disposed of Donnelley Financial Solution to fund higher-conviction opportunities within the capital markets industry
ELF	sold e.l.f. Beauty due to concerns that the company's margins could face pressure as the cosmetics industry grows increasingly competitive.

TICKER

COMMENTARY

FROG

shares of JFrog gained as the rapid adoption of AI-driven coding agents led to a surge in demand for the company's software platform.

MTRN

Materion Corporation's shares outperformed, fuelled by robust demand across its core aerospace, defence and semiconductor end markets.

COHU

Cohu's shares recorded a strong gain as investors increasingly recognised the company's unique role in the AI and high-performance computing supply chain. Cohu is a leading supplier of semiconductor testing and inspection equipment. We believe the company is well positioned to benefit from a recovery in its core end markets. It is also expanding exposure to high-performance computing, where recent wins in high-bandwidth-memory inspection and advanced handler solutions are driving an acceleration in growth.

MGY

Magnolia Oil & Gas' shares declined along with commodity prices, further weighed down by speculation that the company is considering a multi-billion-dollar acquisition.

ATMU

Atmus Filtration Technologies' shares underperformed primarily due to underwhelming aftermarket volumes and supply-chain disruptions stemming from the Middle East conflict.

CRDO

Shares of Credo Technology Group, which is ineligible for inclusion in the strategy due to market-capitalisation limitations, rose after the company signalled strong demand for its connectivity solutions used in data centres. So, our lack of exposure to the stock was unfavourable.

BLBD

Blue Bird Corporation is a leading designer and manufacturer of school buses. We believe the company is well positioned to benefit from elevated replacement demand given its strong execution and diverse powertrain portfolio.

TVTX

Travere Therapeutics is a biopharmaceutical company specialising in rare kidney and metabolic disorders. The company's foundational drug was recently approved for an additional kidney disease, while other promising clinical candidates remain in the pipeline. We believe the combination of these opportunities with strong commercial execution could support growth.

UTI

Universal Technical Institute is a leading provider of technical training for the automotive and healthcare industries. We believe the company's improved operating model and diversification into high-demand skilled labour can drive sustained growth.

CPRX

we sold Catalyst Pharmaceuticals after the announcement of its acquisition by Angelini Pharma.

DFIN

We disposed of Donnelley Financial Solution to fund higher-conviction opportunities within the capital markets industry

ELF

sold e.l.f. Beauty due to concerns that the company's margins could face pressure as the cosmetics industry grows increasingly competitive.

Ticker	Put/Call	Amount Bought	Shares Bought	% Change	Weight %
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Shares Bought

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No Recent Buys Data

Ticker	Put/Call	Amount Sold	Shares Sold	% Change	Weight %	Status
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Shares Sold

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No Recent Sells Data

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

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No industry data available

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

AI

Semiconductors

Defense

Oil

Onshoring

Infrastructure Spending

Rare Diseases

Data Centers

Nuclear

Oil

AI

Onshoring

Dividends

Small Caps

Infrastructure Spending

Onshoring

Defense

Biotechnology

Trade Policy

Small Caps

Onshoring

Infrastructure Spending

Trade Policy

Small Caps

Water

Small Caps

AI

Rates

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Christopher Colarik Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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abrdn U.S. Small Cap Equity Fund