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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, Driehaus Small/Mid Cap Growth Fund. This analysis is provided for institutional research purposes only and is not investment advice.
"Small caps delivered exceptional Q2 outperformance with the Russell 2000 up 21.49%, the strongest relative performance versus large caps since 2001. The strategy gained 22.14% driven by AI-fueled strength in semiconductors and industrials."
The Driehaus Small/Mid Cap Growth Strategy returned 22.14% net in Q2 2026, underperforming the Russell 2500 Growth benchmark's 24.02% return but outperforming for the first half with 23.35% versus 19.66%. Small caps posted exceptional performance with the Russell 2000 up 21.49%, marking the largest quarterly outperformance versus large caps since 2001. The strategy benefited from strong performance in technology (up 56.9%) and industrials (up 24.9%), driven by AI-related demand and robust earnings. Semiconductors were particularly strong with holdings gaining 85.9% as AI data center capex spending remained robust. Energy was the largest detractor, falling 20.1% following the Iran War ceasefire and collapsing oil prices. The manager reduced exposure to AI capex beneficiaries near quarter-end as consolidation appears likely after strong gains. Small cap earnings reached new all-time highs and are growing faster than large caps while trading at a valuation discount. The manager remains constructive for the second half, expecting continued economic growth and strong earnings to drive markets despite near-term consolidation in AI-related names.
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