2024 in Review: Celebrating Milestones and Achievements

As 2024 draws to a close, Ironwood Investment Management, LLC proudly reflects on the accomplishments of the Ironwood Small-Cap Core Strategy 2024, a year that reinforced our multi-decade commitment to excellence in small-cap investing. With industry recognition, top rankings, and strong returns, our strategy continues to deliver value to clients while positioning for a promising 2025.

Performance in The Ironwood Small-Cap Core (SCC) Strategy

The Ironwood Small Cap Core (SCC) Strategy started 2024 with a strong showing in Q1, delivering 16.54% return gross of fees, versus 5.18% for the Russell 2000 benchmark index. This performance won the Strategy recognition in the “Top Gun” ranking by PSN, achieving the #1 spot for quarterly and one-year returns within the PSN Small Cap Core Universe.1

The accolades continued into the second half of the year, where the SCC strategy was ranked #1 in the Nasdaq eVestment Database US Small Cap Core Equity Universe for the first half of 2024. The strategy delivered a 12.4% return gross of fees in the first half of 2024, outpacing the Russell 2000 benchmark index by over 1,000 basis points. 

The strategy has continued to deliver returns into the second half of the year. More details on this performance will be shared in early Q1 2025.

Thought Leadership and Industry Engagement

Our industry engagement and thought leadership was exemplified by our participation in various conferences in 2024. Brian Collins, our Marketing Lead, engaged with industry peers at FutureProof in Huntington Beach and at the Schwab IMPACT conference in San Francisco. This direct and first-hand presence has allowed Ironwood to deepen our exposure and knowledge around the role of AI and the cutting-edge innovation taking place in the investment management industry. This engagement underscores our proactive approach to integrating innovative technologies while upholding our core values. 

Market Insights and Strategic Positioning

Throughout the year, we provide our clients and the broader investment community with market insights. Our Fall 2024 commentary, “The Great Rotation, A Broader Market Rally,” analyzed the shifting investment landscape and highlighted emerging opportunities in small-cap stocks. In focusing on our core investment philosophy, such as searching for undervalued companies poised for growth, we position our clients for long-term potential success.

The market dynamics of 2024 have set the stage for a compelling opportunity in small-cap investing as we move into 2025. Notably, the companies in the Russell 2000 Index, the small-cap benchmark, are trading at more attractive valuations based on estimated 2025 earnings versus their large-cap counterparts.

Furthermore, earnings projections indicate a robust growth trajectory for small-cap companies. While the S&P 500 is expected to see earnings increase by 13% in 2025, the Russell 2000’s earnings are projected to grow by 36% into 2025. This potential earnings upside underscores the attractiveness of small-cap investments in the coming year.

The Ironwood SCC Strategy is well-positioned to capitalize on these favorable conditions. Our focus on identifying undervalued, high-quality small-cap companies aligns with the current market environment, enabling us to uncover opportunities that may be overlooked by others. By leveraging our deep expertise and disciplined investment approach, we strive to deliver strong returns for our clients as the small-cap sector gains momentum into 2025.

Commitment to Core Values and Ethical Investing

As AI-driven technology spreads throughout the investment management industry, Ironwood continues to adhere to our core values and core investment philosophy – traits that have sustained and empowered us for our multi-decade history. 

Our approach to technology and AI aligns with our overall investment philosophy: we believe in quality, integrity, and long-term thinking. Just as we seek out high-quality companies for our portfolios, we’re committed to using high-quality, ethical AI tools in marketing and client service that enhance our capabilities without compromising our values.

Looking Ahead

As we transition into 2025, the Ironwood Small-Cap Strategy 2024 remains a cornerstone of our approach, reflecting our dedication to excellence. Ironwood Investment Management, LLC remains steadfast in our mission to deliver risk-adjusted returns through diligent research and active management. Our achievements in 2024 are a testament to our team’s expertise, resilience, and unwavering commitment to our clients.

As the year wraps up, we extend our heartfelt gratitude to our clients, partners, and team members for their trust and support. Together, we look forward to building upon this year’s successes and navigating the opportunities and challenges that lie ahead.

To learn more about how our innovation and track record in the small cap space delivers for clients, contact us for an introductory call.

Partner with Ironwood for Small-Cap Success in 2025

As we enter 2025, the small-cap market presents compelling growth opportunities. Ironwood Investment Management, LLC is poised to capitalize on these opportunities with our proven strategies, deep expertise, and unwavering commitment to our clients.

  • Proven Performance: Our Ironwood Small-Cap Core Strategy has outperformed benchmarks, demonstrating our ability to navigate the complexities of the small-cap market.
  • Active Management Expertise: Active management is essential for uncovering hidden gems and maximizing returns in the small-cap space.
  • Client-Focused Approach: We prioritize building strong relationships with our clients, providing personalized support and insights to help them achieve their investment goals.

Ready to explore the potential of small-cap investing with a trusted partner?

Schedule a consultation today!

Footnotes

  1. Awarded May 21, 2024. PSN is not a client, and no compensation was paid or received in exchange for the ranking. Register for free to view the full PSN Top Guns recipient list and award methodology: PSN Top Guns: https://psn.fi.informais.com/.

PERFORMANCE DATA AND DISCLOSURES

Performance Statistics as of 9/30/2024

Performance Statistics as of 6/30/2024

Performance Statistics as of 3/31/2024

Ironwood Investment Management®, LLC (Ironwood) is an independently managed investment advisory firm providing investment advisory services to institutional clients, mutual funds and high-net-worth clients.  The firm is a registered investment adviser with the Securities and Exchange Commission. SEC Registration does not imply a certain level of skill or training. Accounts in the Small Cap Core composite include separately managed, fully discretionary, fee-paying portfolios.  Portfolios are invested in undervalued securities, the  majority of which will have market capitalizations under $2.5 billion at cost, including securities with growth and/or value characteristics.  Securities are considered  undervalued when management believes the current share price does not  accurately reflect the long-term economic value of the underlying company. Ironwood Investment Management, LLC claims compliance with the Global          Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Ironwood Investment Management, LLC has been independently verified for the periods January 1, 1999 through December 31, 2021. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis.  The Small Cap Core composite has had a performance examination for the periods July 1, 2002 to December 31, 2021.  The verification and performance examination reports are available upon request. GIPS® is a registered trademark of CFA Institute.  CFA  Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. The creation date of the composite:  July 2002. Performance inception date of the composite: January 1, 1999. Prior to July 2002, portfolios were included in the composite when at least 75% of the portfolio was invested in equity securities and when at least 75% of the portfolio was invested according to the investment style of the composite. Subsequent to July, 2002, portfolios are included in the composite after the first full month of being fully invested.  Returns are presented gross and net of management fees and include the reinvestment of all income. Net  returns are calculated based on the highest fee of 1.00%. Investment management fees are 1.00% on the first $25 million, 0.90% on the next $25 million, 0.80% on the next $50 million, and 0.75% over $100 million on an annual basis and a client’s return will be reduced by these and   other related expenses. The actual fee charged to an individual  portfolio may vary by size and type of portfolio and may be negotiated. Actual investment advisory fees incurred by  clients may vary. The Russell 2000 Index consists of the 2000 smallest stocks in the Russell 3000 Index that represents approximately 8% of the U.S. equity market capitalization.  The indices have been reconstituted annually since 1989. Ironwood returns and Index performance reflect reinvested interest income and dividends, in U.S. dollars. A list of composite descriptions and a list of limited   distribution pooled fund descriptions are available upon request. Past performance is not indicative of future results. Policies for valuing investments, calculating performance and preparing GIPS Reports are available upon request. Prior to May 2006, the Firm was known as Ironwood Capital Management, LLC.

Copyright © 2024 Ironwood Investment Management, LLC | All Rights Reserved.

John Grady

Research & Operations Associate

As Research & Operations Associate, John assists the equity research effort in support of the portfolio managers and works closely with the operations department. Prior to joining the Ironwood team in 2023, John earned his BA in Psychology, from the University of Denver. While studying, John developed several business plans for small businesses in the Denver area for a capstone project for his business minor. Prior to joining Ironwood, John was developing his research skills through an apprenticeship by regularly meeting with management teams, attending investor conferences, and developing investment theses.

Cameron Marshall

Trading & Research Associate

As a Trading & Research Associate, Cameron is responsible for investment portfolio trading and operations as well as conducting equity research in support of the portfolio managers. Prior to joining the Ironwood team in 2022, Cameron earned his BA in Economics, with a minor in Mandarin, from the University of New Hampshire. While studying, Cam held several internships working with investment teams across asset classes in both private and public markets. An active member of his community, Cam has contributed his time and energy to charities including Best Buddies International, Be Positive for CHaD Kids, and Positive Tracks.

Alyssa Wade

Director of Client Relationships

Alyssa Wade is the Director of Client Relationships and assists in the Marketing Department at Ironwood Investment Management, LLC®. Prior to joining Ironwood, Alyssa worked at Boston Technologies and Regan Communications Group. She holds a Bachelor of Arts in Communication with a minor in Education from the University of Massachusetts, Amherst.

Regina Wiedenski

Co-Portfolio Manager
Value Investment Partners (VIP) Strategies

Regina Wiedenski is Co-Portfolio Manager for the VIP strategies at Ironwood Investment Management, LLC®. Ms. Wiedenski has an MS in Management with a concentration in finance from the Sloan School at M.I.T. and a BS from M.I.T. Prior to joining Ironwood to manage VIP portfolios, she was a Portfolio Manager at J.L. Kaplan Associates. Previously she was an equity analyst at Advest, Inc. and had spent nine years as an analyst at Adams, Harkness & Hill covering healthcare, specialty chemical, instrumentation and publishing companies. She began her career as a financial analyst at Morgan Stanley.

Paul Weisman

Co-Portfolio Manager
Value Investment Partners (VIP) Strategies

Paul Weisman is Co-Portfolio Manager for the Value Investment Partners (VIP) strategies at Ironwood Investment Management, LLC®. Mr. Weisman has an MA in Industrial Organization (Applied Microeconomics) from Boston University and a BA from Haverford College. Prior to joining Ironwood as the head of the V.I.P. team in 2009, Mr. Weisman was Chief Investment Officer at J.L. Kaplan Associates which he joined in 1986. From 1983 to 1986 he was an investment analyst at Delphi Management.

Ravi Jain, Ph.D., CFA

Partner

Ravi Jain, Ph.D., CFA is a Partner at Ironwood Investment Management, LLC®. Dr. Jain has a Ph.D. in Finance from the University of Missouri Columbia (doctoral thesis on corporate spinoffs), a Master of Finance and Bachelor of Commerce from the University of Delhi. He is also a Chartered Financial Analyst® (CFA). Dr. Jain is an Associate Professor of Finance at the University of Massachusetts Lowell where his research focuses on capital markets and corporate finance.

Warren Isabelle

Portfolio Manager

Warren Isabelle, CFA is a Portfolio Manager at Ironwood Investment Management, LLC®. Prior to forming Ironwood Investment Management, LLC® in 1997, Warren was the Head of Domestic Equities at Pioneer Management Company and the Portfolio Manager of more than $3 billion in small cap assets including the Pioneer Capital Growth Fund (later renamed Pioneer Mid-Cap Value Fund), Pioneer Small Company Fund and several institutional portfolios. Warren has received national attention for his research efforts and results.  He has also appeared in feature articles in Barron’s, Business Week, Forbes, Fortune, Money and The Wall Street Journal and has appeared on “Wall Street Week with Louis Rukeyser.” Prior to joining Pioneer, Warren was an Analyst at The Hartford Insurance Company.  He earned a BS in Chemistry from Lowell Technological Institute, an MS in Polymer Science and Engineering from the University of Massachusetts, and an MBA in Finance from the Wharton School of the University of Pennsylvania.

Paul Anderson

Executive Managing Partner

Paul Anderson, CFA is Executive Managing Partner of and leads investor relations, business development and management activities for Ironwood and is a member of the management committee.  Paul joined Ironwood in December 2020 after 12 years at Natixis Investment Managers where he developed and led the U.S. institutional distribution group at Natixis Distributors L.P. Over the course of his 30 years in the industry, Paul has held roles in investment research, sales and management.  Paul holds a Bachelor of Arts in Economics from the University of New Hampshire, and an MBA from Vanderbilt University.  He is a member of the Committee on Investor Responsibility at UNH advising the UNH Foundation on sustainable investment practices.

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Shantelle Reidy

Executive Managing Partner
Chief Financial Officer
Chief Compliance Officer

Shantelle Reidy is Executive Managing Partner and the Chief Financial Officer and Chief Compliance Officer for Ironwood Investment Management, LLC®. Shantelle is a member of the management committee and has served Ironwood in various capacities since joining the firm in 1998, including as Executive Director of Trading and Operations from 2001 to 2014. Prior to joining Ironwood, Shantelle was an Investor Relations Analyst at Talbots, Inc. where she conducted research for the company and managed the firm’s communication with investment analysts. Shantelle holds a Bachelor of Arts degree in Economics and Political Science from Boston University and a Master of Business Administration in Marketing and Finance from the Boston University School of Management.

Donald Collins, CFA

Executive Managing Partner
Portfolio Manager

Donald Collins, CFA is an Executive Managing Partner and Portfolio Manager at Ironwood Investment Management, LLC® and is a member of the management committee. Prior to joining Ironwood in 1998, Don was a portfolio manager with Boston Advisors where he managed portfolios for institutions and high net worth clients.  During his tenure at Boston Advisors, Don participated in the management of the Advest Advantage family of mutual funds and managed the Advantage Special Fund.  Don began his career as a Manager for Burgess & Leith.  He earned his BA in Geology from Boston University and studied at the Boston University School of Business.  In addition, Don is the Director and Investment Committee Chairman for the Abelard Foundation, Chairman and Commissioner of Trust Funds for the Town of Lincoln, MA and Director and Chief Financial Officer at Igan Biosciences.

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