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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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Buyside Digest is not affiliated with, and does not endorse, Grandeur Peak Emerging Markets Opportunities Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"Grandeur Peak's EM Opportunities Fund returned +18.19% in Q2 as quality growth investing showed signs of resurfacing after years of underperformance. Small-cap Semiconductors surged +68.7% on strong fundamentals."
Grandeur Peak's Emerging Markets Opportunities Fund returned +18.19% in Q2 2026, outperforming its benchmark as several 'submerged beach balls' began to surface after an extended period of underperformance. The quarter marked the best broad-based global market rally since 4Q 2020, with active foreign SMid-cap managers outperforming passive peers and high-quality funds outperforming lower-quality cohorts for the first time in years. Small-cap Semiconductors, a key overweight, delivered exceptional returns of +68.7% on strong fundamentals. The firm's rotation away from Software & Services due to AI-related obsolescence risk proved beneficial. Industrials remains highly attractive with diverse themes including data centers, defense, mining, and nearshoring. Consumer positions contributed strongly across regions, with the firm finding opportunities in non-AI names at attractive valuations. In China, the firm sees selective opportunities in brands creating emotional value despite near-term consumer weakness. The firm maintains discipline on Financials, remaining cautious on banks and REITs at elevated valuations while overweighting Capital Markets. Management believes the majority of the portfolio has yet to resurface and expects sustained outperformance as fundamentals reassert themselves over speculation.
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