Overview
- Rewey said in its first-quarter investor letter released Wednesday that the RAM Smid Composite returned 9.21%, topping the Russell 2500 Value Total Return index at 4.77%.
- Ultra Clean Holdings led results with a 141.5% gain in Q1 as its semiconductor subsystems business benefited from stronger quarterly results and rising chipmaking capital spending tied to AI-fueled memory demand.
- Rewey opened a new position in DNOW after the stock fell following fourth-quarter results that included merger-related accounting charges and Oracle ERP conversion problems at newly combined peer MRC Global.
- The firm described a choppy backdrop as the small- and mid-cap index climbed into late February then slipped when the Iran conflict and higher oil prices hit, which it reads as a shift of attention toward overlooked smaller companies.
- Market snapshots as of April 21 showed Ultra Clean at $77.55 with a 274% 52-week gain and DNOW at $11.94 with a 21% 52-week decline, while Rewey reiterated its focus on financially robust small and mid caps that can handle volatility.