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Invesco Small Cap Value Fund Beats Benchmark in Q4 as AI Plays Shape Portfolio

Managers credit AI infrastructure exposure for gains.

Overview

  • Invesco’s Q4 2025 letter reports Class A shares up 6.79% versus 3.26% for the Russell 2000 Value Index, with full‑year returns of 17.64% versus 12.59% and Information Technology stock selection adding about 2.90% to relative Q4 performance.
  • Lumentum shares rallied in the quarter on investor enthusiasm for AI‑driven growth potential, highlighting the fund’s exposure to data‑center and networking beneficiaries.
  • The fund exited MasTec after a Q4 rally despite its role in fiber and data‑center build‑outs, reallocating capital to opportunities viewed as offering greater upside to intrinsic value.
  • AECOM’s stock fell after an earnings beat paired with a revenue miss, while Crane NXT declined due to renewed U.S.–China trade tensions and a reduced full‑year earnings outlook.
  • Operational headwinds created entry points the managers view as attractive, including Globus Medical after acquisition, supply chain and robotics challenges, and Charles River Laboratories amid slower biotech and pharma R&D spending.