The Investor Insight Q2 2025

Over the past several years—and again in 2025—small and micro-cap stocks have notably underperformed their large-cap counterparts. While large-cap growth, particularly in tech and AI, has dominated investor attention, a compelling case seems to be quietly building in the overlooked corners of the market.

The Performance Gap

Year-to-date through June 2025, the S&P 500 is up, driven by continued strength in mega-cap tech. Meanwhile, the Russell 2000 (small cap) and micro caps remain largely in negative territory. But this isn’t just a 2025 story—it’s been a multiyear story. This persistent underperformance has widened the valuation gap to historic extremes.

What’s Inside?
- Small & Micro Caps: From Laggards to Opportunity
- From Cloud to Grid: The Hidden Cost of Artificial Intelligence