MGY - Wasatch Small Cap Value Fund Q1 2025 Commentary
2025-05-21 09:46:00 ET
Summary
- The Wasatch Small Cap Value Fund—Investor Class posted a -9.63% loss for the quarter and underperformed the benchmark Russell 2000® Value Index, which finished down -7.74%.
- Tariffs have been the issue at the top of investors’ minds in recent months because they affect both day-to-day market direction and the longer-term economic outlook.
- One way we seek to achieve balance is by maintaining a mix of defensive stocks and “Fallen Angels”—our term for growth companies that have hit a bump in the road and whose stocks have dropped into value territory.
Overview
After a positive start to the year, stocks moved lower in volatile trading to finish the first quarter in negative territory. The initial rally, which largely reflected continued optimism that the Trump administration would boost the economy with pro-business policies, ultimately faltered amid uncertainty surrounding daily headlines about tariffs. In addition, investors appeared to grow concerned that the U.S. economy could begin to face the dual headwinds of slowing growth and persistent inflation—a phenomenon referred to as “stagflation.” Small-cap stocks, which tend to have above-average sensitivity to economic trends, lagged the broader market in the ensuing sell-off....
Wasatch Small Cap Value Fund Q1 2025 Commentary