American Century Credits Energy Rally for Small Cap Value Fund Gain

Overview

• American Century published its Q1 2026 investor letter on Tuesday and reported the Small Cap Value Fund Investor Class returned 3.85% for the quarter versus a 4.96% return for the Russell 2000 Value Index.
• The letter says markets first reacted to investor concerns about AI and then to a conflict involving Iran that peaked in March and pushed oil prices sharply higher.
• Energy exposure drove the fund’s relative performance, with American Century highlighting Permian Resources, Crescent Energy and Magnolia Oil & Gas as notable beneficiaries of the March oil spike and Strait of Hormuz supply disruptions.
• The firm also disclosed it initiated a post-IPO position in EquipmentShare, noting the company went public in late January after strong 2025 operating results and fits the fund’s focus on undervalued small-cap businesses with earnings potential.
• Third-party reporting of Q1 filings shows measurable institutional interest in these names, with hedge funds holding Permian (56 portfolios), Crescent (40), EquipmentShare (39) and Magnolia (32), a snapshot that could influence liquidity and future price moves for small-cap energy and industrial stocks.