Schafer Cullen Capital Management, Inc., an independent investment advisor, released its Q1 2026 investor letter for the “Small Cap Value Equity Strategy.” You can download a copy of the letter here.
U.S. equity markets started 2026 with notable volatility due to geopolitical events and shifting macro conditions
The Russell 2000 rose 0.9% for the quarter, with small-cap value outperforming growth. Concerns over AI and its impact on software companies heightened among investors. The Small Cap Value Equity strategy composite returned -1.8% (gross) and -2.0% (net) in the quarter, while the Russell 2000 Value returned 5.0% for the quarter, and the broader Russell 2000 Index gained 0.9%, reflecting strength in small caps.
The performance in the quarter was shaped by rising interest rates, widening credit spreads, and geopolitical tensions. Overall, the quarter challenged quality-oriented strategies, yet the firm remains committed to investing in companies with strong balance sheets and sustainable earnings, believing this focus will benefit as market conditions improve. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.