Driehaus Small‑Cap Growth Strategy Beats Benchmarks in Q2 2026

When the June quarter closed, the Driehaus Small‑Cap Growth Strategy had already chalked up a 25.83% return. That’s a hair above the Russell 2000 Growth Index, which ended the period at 25.71%. The numbers aren’t dramatic on paper, but they feel reassuring after the market shake‑up we saw in March.

Back then, headlines were dominated by the Iran conflict and a steep jump in crude oil. Those events sent a wave of nervousness through the equity markets, and many small‑cap stocks were left hanging on the rope of oversold sentiment. By the time the dust settled, the fund’s positioning—especially its exposure to technology, healthcare and industrials—allowed it to catch the rebound.

What moved the needle? Technology stocks, particularly those with a clear AI‑related capital‑expenditure storyline, ran hot. Healthcare benefitted from solid earnings reports, while industrials got a lift from renewed demand in the manufacturing corridor. The blend of these three sectors supplied the bulk of the upside.

Looking ahead to the second half of 2026, the portfolio managers say they’ll stay overweight on industrials and healthcare, and they’re nudging technology a bit higher. At the same time, they’ve trimmed some positions that are heavily exposed to AI‑data‑center capex. The rationale? A possible short‑term consolidation in that niche could turn a once‑bright theme into a temporary drag.

Risks on the table include a fragile cease‑fire in Iran, which could reignite market volatility if hostilities flare again. A shift in Federal Reserve policy—especially any surprise rate moves—remains a wildcard. Meanwhile, a stagnant labor market or a slowdown in AI‑related spending by the hyperscalers could dent the momentum that’s been carrying the fund.

In short, the fund’s Q2 performance reflects a mix of disciplined sector bets and a timely move away from the most exposed AI‑heavy names. If the macro backdrop stays relatively calm and the sector overweight continues to deliver, the managers are hopeful that the outperformance can be sustained through the rest of the year.