Small caps had a solid second quarter in 2026, with the Bloomberg 2000 Total Return Index gaining 20.97%, a strong return compared to the first quarter. The technology and health care sectors were among the top performers in the small cap arena. Cyclical sectors and economically sensitive areas such as financials, industrials, and consumer discretionary also showed strong performance during the three-month period.
Strong robust corporate earnings and easing tensions with Iran propelled markets to new highs. Inflation fears eased as oil and gas prices fell throughout the period. Additionally, the spending and continued growth in AI was a major tailwind for the market and are contributing factors to strong earnings growth. Overall, the macro backdrop looks strong and with the addition of geopolitical risk easing the setup might be a nice tailwind into the second half of the year.
How did the James Small Cap Fund (JASCX) perform?
How did the James Small Cap Fund perform in the 2nd qtr 2026?
The James Small Cap Fund advanced 16.14% in the second quarter of 2026. The Bloomberg 2000 Index gained 20.97%.
How did the James Small Cap Fund perform in the first half of 2026 and which sectors were the top contributors?
In the first half of the year the James Small Cap Fund was up 21.10%. AI related stocks were the top contributors as industrials and information technology contributed to about half of the return year-to-date.
Which sector contributed the most to performance in the 2nd Qtr 2026?
The financial sector made the largest contribution, a combination of strong performance and an overweight allocation.
What stock was the top contributor/detractor to performance in 2nd Qtr 2026?
ACM Research, Inc. was the top contributor as it gained over 200% during the three-month period. Strong revenue growth and robust guidance along with momentum from the AI investment thesis have been a tailwind for ACM Research.
Photronics, Inc. was among the worst contributors. The stock fell about 20% during the quarter after disappointing earnings, revenue, and guidance fell below expectations.
How has the Fund done versus its benchmark over the last 3-year and 5-year periods?
The fund returned 22.61% on an annual basis over the last 3 years, outpacing the Bloomberg 2000 return of 18.49%. Over the last 5 years the fund increased 14.46% annually, compared to the benchmark return of 7.11%.
Definitions
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- Bloomberg U.S. 2000 Total Return Index – A float market-cap-weighted benchmark of the lower 2000 in capitalization of the Bloomberg US 3000 Index.
Disclosures
You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus by calling 1-800-995-2637.
The James Advantage Mutual Funds are distributed by Ultimus Fund Distributors, LLC (Member FINRA/SIPC). Ultimus Fund Distributors, LLC is not affiliated with James Investment Research, Inc.
The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Funds’ current performances may be lower or higher than the performance data quoted. Investors may obtain performance information current to the last month-end, within 7 business days, at www.jamesinvestment.com
For standardized performance and expense information, visit: www.jamesinvestment.com/funds/small-cap/
