The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
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.
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.
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.
As of Jul 29, 2026
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.
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.
Lead Portfolio Manager
Neutral / Balanced
Market Conviction
The letter names 12 specific positions with substantive commentary on each, including detailed rationales for new purchases (Blue Bird, Cohu, Travere, UTI) and sales (Catalyst, Donnelley, e.l.f.). However, no position sizing is disclosed, no concentration metrics are provided, and the language is measured rather than declarative. Phrases like 'we believe' appear frequently. The fund appears diversified across multiple sectors. The absence of position sizing and concentration data, combined with hedged language throughout, caps the score. Score: 0.58 reflects moderate conviction with named positions but limited specificity on sizing or concentration.
Growth Outlook
Market outlook remains above average conviction: The abrdn U.S. Small Cap Equity Fund posted gains in Q4 2025 but underperformed its benchmark. Capital was actively redeployed into higher-quality, structurally-aligned small-cap p...
Risk Appetite
Risk appetite posture is above average conviction: The abrdn U.S. Small Cap Equity Fund posted gains in Q4 2025 but underperformed its benchmark. Capital was actively redeployed into higher-quality, structurally-aligned small-cap p...
Capital Deployment
The fund initiated four new positions (Blue Bird, Cohu, Travere Therapeutics, Universal Technical Institute) and exited three (Catalyst, Donnelley, e.l.f.). This represents active rotation but no explicit data on cash level changes. The sales were described as funding 'higher-conviction opportunities' and one was an acquisition exit, suggesting rotation rather than net deployment. Without cash percentage data and given the balanced buy/sell activity, this appears to be capital rotation with modest net deployment. Score: +0.25 reflects rotation with selective net adding.
Forward Guidance
Forward guidance signal: The abrdn U.S. Small Cap Equity Fund posted gains in Q4 2025 but underperformed its benchmark. Capital was actively redeployed into higher-quality, structurally-aligned small-cap p...
Language Signal
Bullish language includes: 'optimistic,' 'well positioned,' 'opportunities,' 'attractive,' 'robust demand,' 'strong gain,' 'outperformed,' 'secular trends,' 'supportive,' 'resilience.' Bearish/cautious language includes: 'risks,' 'concerns,' 'stagflation,' 'volatility,' 'headwinds,' 'challenges,' 'declined,' 'underperformed,' 'pressure,' 'competitive.' The balance tilts slightly bullish but with substantial risk acknowledgment. Score: +0.42 reflects more bullish than bearish language, but balanced.
Perceived Risk
Perceived risk level is evaluated as moderate conviction. The abrdn U.S. Small Cap Equity Fund posted gains in Q4 2025 but underperformed its benchmark. Capital was actively redeployed into higher-quality, structurally-aligned small-cap p...
Opportunity Density
The manager initiated four new positions and describes the environment as creating 'opportunities for disciplined, fundamental investors to identify and capitalise on valuation dislocations.' The letter states small caps are 'well positioned to benefit from secular trends' across multiple areas (infrastructure, technology, reshoring). However, the emphasis on 'selectivity' and 'patience' suggests opportunities require work to find rather than being abundant. Score: 0.62 reflects selective opportunities in defined areas, not a broadly rich opportunity set.
Time Horizon
The manager explicitly emphasizes 'long-term outlook,' 'long-term focus,' and 'secular trends' multiple times. The letter discusses 'differentiated outcomes over the cycle' and positions in companies expected to benefit from multi-year trends (AI adoption, infrastructure investment, supply chain reshoring). The phrase 'patience, selectivity and a long-term focus remain critical' is declarative. However, the fund also discusses quarterly performance and near-term catalysts (drug approvals, demand recovery), suggesting a 2-4 year horizon rather than permanent capital. Score: 0.72 reflects a multi-year thesis with explicit long-term language but not permanent capital structure.
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Key Catalysts
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