| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.46% | -0.44% | -0.44% |
Lord Abbett Developing Growth Fund returned -0.44% in Q1 2026, outperforming the Russell 2000 Growth Index by 237 basis points. The quarter was marked by economic resilience offset by rising geopolitical tensions and AI disruption concerns affecting technology sectors. Security selection in Industrials contributed to performance, led by Comfort Systems USA, while Communication Services and Materials detracted. The fund maintains a constructive outlook driven by earnings growth expectations, fiscal stimulus, and eventual tariff stabilization, though acknowledges near-term selectivity is warranted given oil shocks, private credit risks, and AI-related uncertainties. The portfolio emphasizes companies with secular growth, competitive advantages, strong cash flows, and quality management teams while avoiding leveraged names. Innovation continues across AI-enabled sectors including semiconductors, defense technology, and industrial automation. The fund sees particular opportunity in AI factory expansion, autonomous defense systems, and power infrastructure supporting AI deployment. With market indicators showing complacency rather than fear, disciplined active management remains essential for navigating current conditions.
Focus on quality small-cap growth companies with secular growth drivers, particularly in AI-enabled sectors including semiconductors, defense technology, and industrial automation, while maintaining selectivity given current macro and geopolitical uncertainties.
The fund believes earnings growth can carry the market higher over the course of the year, but some selectivity is warranted in the near term given current risks. They continue to find quality companies across the market cap spectrum in favored innovation areas.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 11 2026 | 2026 Q1 | FIX, MP, RDDT, TERN | AI, Biotechnology, growth, healthcare, industrials, small cap, technology | - | Lord Abbett's small-cap growth fund outperformed by 237bp despite AI disruption headwinds. Strong security selection in Industrials offset Communication Services weakness. Fund maintains constructive earnings-driven outlook while emphasizing selectivity given geopolitical tensions and credit risks. Portfolio focuses on AI-enabled innovation across semiconductors, defense technology, and industrial automation with quality bias toward cash-generative, well-managed companies. |
| Feb 25 2026 | 2025 Q4 | BBIO, CELH, CRDO, CRS, FIX, GH, KTOS, LRN, MDGL, MOD, RDDT, RKLB, WGS | AI, growth, Health Care, industrials, innovation, small caps, technology | - | Lord Abbett's small-cap growth fund outperformed in Q4 2025, driven by strong Health Care and Industrials selections. The manager sees continued secular bull market for innovative growth stocks, supported by Fed rate cuts, broadening earnings, and AI productivity gains. Focus remains on quality companies across AI, defense, space technology, and datacenter infrastructure themes. |
| Oct 15 2025 | 2025 Q3 | ALAB, BROS, CRDO, FIX, GH, GWRE, INSM, KTOS, MTZ, RDDT, RMBS, SFM | AI, defense, growth, industrials, semiconductors, small caps, technology |
ASTR US KRAT US CSU US |
Lord Abbett's small-cap growth fund outperformed in Q3 2025, driven by AI semiconductor and industrial infrastructure plays. The manager sees a continuing secular bull market supported by Fed dovishness, broadening earnings, and AI productivity gains. Focus remains on quality companies in AI, defense technology, and datacenter infrastructure despite ongoing policy uncertainty. |
| Jul 15 2025 | 2025 Q2 | ALAB, BROS, CRDO, FIX, GH, GWRE, INSM, KTOS, MTZ, RDDT, RMBS, SFM | AI, defense, growth, semiconductors, small caps, technology | - | Lord Abbett's small-cap growth fund outperformed in Q3 2025, driven by AI semiconductor and industrial infrastructure plays. The manager sees a continuing secular bull market for innovative growth stocks, supported by Fed dovishness, broadening earnings, and AI productivity gains. Focus remains on quality companies in AI, defense technology, and datacenter infrastructure despite ongoing policy uncertainty. |
| Sep 30 2024 | 2024 Q3 | ADMA, CAVA, CYBR, FIX, FROG, GKOS, LOAR, PIPR, RXST, SG, TMDX, VRNS, ZETA | AI, Biotechnology, Cloud, growth, healthcare, infrastructure, small cap, technology | - | Lord Abbett's small-cap growth fund underperformed in Q3 but maintains conviction in AI, cloud computing, medical innovation, and infrastructure themes. Management sees receding inflation pressure enabling Fed cuts while economic growth continues, expecting small-caps to outperform after prolonged underperformance with ample opportunities in secular growth areas. |
| Jun 30 2024 | 2024 Q2 | AVAV, CAMT, CAVA, CYBR, FIX, FRPT, INSP, NTRA, ONTO, RXST, SAIA, WING | AI, consumer, growth, healthcare, infrastructure, small cap, technology | - | Lord Abbett's small-cap growth fund outperformed in Q2 2024, driven by strong stock selection in consumer and technology names. The manager sees inflation headwinds fading and expects small-caps to outperform after extended underperformance. Key themes include AI emergence, infrastructure reinvestment, and medical innovation, with the fund finding ample opportunities across companies exhibiting strong fundamentals. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIThe fund sees AI as a key innovation driver across multiple sectors. They are excited about pioneering Gen AI companies in semiconductors, industrial companies enabling AI factory expansion, and AI's role in defense and space technology. AI is also benefiting cloud, e-commerce, mobility, search, and social networks. |
Semiconductors Defense Cloud Infrastructure |
DefenseThe fund is excited about AI's role in the emerging defense and space technology sector, describing it as a historically low growth area seeing an inflection in autonomous software and hardware systems. |
Space Autonomous Software Hardware | |
BiotechnologyThe fund holds multiple biotech positions including Terns Pharmaceuticals, Madrigal Pharmaceuticals, and BridgeBio Pharma. Terns was noted as a contributor to performance despite health care sector selection being a net detractor. |
Pharmaceuticals Clinical Healthcare | |
| 2025 Q4 |
TechnologyFund invests at least 80% of net assets in technology companies across multiple sub-industries including IT consulting, internet services, application software, communications equipment, semiconductors, and interactive media. Portfolio focuses on companies with sector-leading cash flows, attractive valuations, and sustainable profitability prospects. |
Software Hardware Semiconductors Internet Communications |
| 2025 Q3 |
AIGenerative artificial intelligence continues to provide market tailwinds with productivity gains across sectors. AI is flourishing in semiconductors and software companies, as well as enabling datacenter expansion and power infrastructure. The emerging defense and space technology sector benefits from AI's role in autonomous software and hardware systems. |
Semiconductors Software Data Centers Defense Productivity |
DefenseThe defense and space technology sector is experiencing a positive inflection as a historically low growth area sees advancement in autonomous software and hardware systems driven by AI capabilities. |
Space Autonomous Systems Defense Electronics Government IT | |
Data CentersIndustrial companies are enabling datacenter expansion and power infrastructure to support the growing artificial intelligence ecosystem and computing demands. |
Power Infrastructure Industrial Cloud Infrastructure | |
| 2025 Q2 |
AIGenerative artificial intelligence continues to provide market tailwinds and productivity gains. The fund is finding opportunities in pioneering Gen AI companies in semiconductors and software, as well as industrial companies enabling datacenter expansion and power infrastructure to support AI growth. |
Semiconductors Software Data Centers Productivity |
DefenseThe defense and space technology sector is experiencing a positive inflection as a historically low growth area sees advancement in autonomous software and hardware systems. AI is playing a key role in this emerging sector transformation. |
Space Autonomous Software Hardware | |
CloudCloud computing has benefited from the positive inflection driven by AI adoption, contributing to the broader technology sector growth and innovation themes the fund is pursuing. |
Computing Technology Innovation | |
| 2024 Q3 |
AIThe fund identifies generative artificial intelligence as one of their favorite investment areas that appears ready to re-accelerate growth in 2024 and beyond. They view the emergence of generative AI as creating ample opportunities across the market cap spectrum. |
Artificial Intelligence Generative AI Technology Growth Innovation |
CloudCloud computing is highlighted as one of the fund's favorite investment areas with ample opportunities for growth acceleration. The fund sees cloud computing as part of the broader technology infrastructure that supports above-average revenue and earnings growth. |
Cloud Computing Software Infrastructure Technology SaaS | |
Data CentersThe fund identifies an industrial infrastructure reinvestment cycle driven by datacenter investments as a key growth theme. This is part of their broader infrastructure investment thesis that includes electric grid and supply chain reshoring. |
Data Centers Infrastructure Industrial Technology Investment | |
CybersecurityThe fund holds CyberArk Software as their second-largest position at 2.2% weight, indicating significant conviction in the cybersecurity theme. This represents their focus on technology companies with strong growth prospects. |
Cybersecurity Software Security Technology Enterprise | |
BiotechnologyThe fund emphasizes revolutionary advances in medical treatments as one of their favorite investment areas. They hold multiple healthcare positions including TransMedics Group, Glaukos Corp, and ADMA Biologics, representing significant exposure to medical innovation. |
Biotechnology Medical Devices Healthcare Innovation Treatment | |
| 2024 Q2 |
AIThe fund sees the emergence of generative artificial intelligence as one of their favorite areas ready to re-accelerate growth. They view AI as part of the broader innovation cycle they are targeting for investment opportunities. |
Artificial Intelligence Generative AI Innovation Technology Growth |
Data CentersThe fund identifies an industrial infrastructure reinvestment cycle driven by datacenter needs as a key investment theme. This is part of their focus on infrastructure spending and technological advancement. |
Infrastructure Technology Infrastructure Industrial Reinvestment Growth | |
OnshoringSupply chain reshoring is highlighted as part of the industrial infrastructure reinvestment cycle the fund is targeting. This represents a structural shift in how companies approach manufacturing and supply chain management. |
Supply Chain Manufacturing Infrastructure Industrial Reshoring |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 15, 2025 | Fund Letters | F. Thomas O'Halloran | KRAT US | Kratos Defense & Security Solutions, Inc. | Other | Aerospace & Defense | Bull | NASDAQ | AI, Autonomy, Contracts, Defense, Drones, growth, Military | Login |
| Oct 15, 2025 | Fund Letters | F. Thomas O'Halloran | CSU US | Comfort Systems USA, Inc. | Information Technology | Engineering & Construction | Bull | NYSE | AI, construction, Electrification, growth, HVAC, infrastructure, Margins | Login |
| Oct 15, 2025 | Fund Letters | F. Thomas O'Halloran | ASTR US | Astera Labs, Inc. | Other | Semiconductors | Bull | NASDAQ | AI, Connectivity, data centers, growth, hyperscalers, Margins, semiconductors | Login |
| TICKER | COMMENTARY |
|---|---|
| FIX | Security selection within the Industrials sector contributed to relative performance over the period, driven by an allocation to Comfort Systems USA, Inc. (3.1%), an engineering and construction company. |
| TERN | Although security selection within the Health Care sector was a net detractor to relative performance, the Fund's allocation to Terns Pharmaceuticals, Inc. (1.5%), a clinical-stage biopharmaceutical company, was a notable contributor. |
| RDDT | Security selection within the Communication Services sector detracted from relative performance over the period, driven by an allocation to Reddit, Inc. (1.1%), an entertainment, social networking, and news website. |
| MP | Security selection within the Materials sector also detracted from relative performance, driven by an allocation to MP Materials Corp., (0.4%), a rare earth specialty materials and mining company. |
| 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 | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
