Introduction
In today’s dynamic equity markets, small-cap stocks continue to capture investor attention. With their potential for innovation and agility, they represent both opportunities and challenges for long-term portfolios. Against this backdrop, Ironwood Investment Management, LLC was awarded two PSN Top Guns for Small Cap Core: one for quarterly performance and one for three-year performance, both ending June 30, 2025.¹ These awards reflect Ironwood’s disciplined approach to small-cap investing and highlight the consistency of its process in navigating an often-volatile segment of the market.
Small Cap Core: Potential Opportunities in a Complex Market
Small-cap companies frequently operate at the forefront of innovation, often bringing fresh ideas and disruptive solutions to their industries. However, they can also experience greater volatility due to liquidity constraints, investor sentiment, and macroeconomic shifts.
For investors, this means small-cap equities can provide potential opportunities for portfolio diversification and long-term value creation when evaluated carefully. Ironwood’s Small Cap Core strategy is rooted in identifying what the firm defines as “Ironwood-Quality” companies, businesses with solid fundamentals, thoughtful governance, and strong leadership teams that aim to endure across market cycles.²
A Disciplined Approach to Small Cap Core Investing
At the heart of Ironwood’s process is a belief in patience and prudence. Markets often overreact to short-term events, but disciplined managers can use these periods of volatility to identify companies with strong underlying fundamentals trading at attractive valuations.³
The Small Cap Core strategy combines rigorous bottom-up research with portfolio construction guidelines designed to balance risk and potential opportunity. With 60 to 80 holdings, diversified exposures, and a focus on stock selection rather than sector bets, the strategy seeks to uncover companies capable of delivering potential long-term value.⁴
This approach has been refined over decades and is supported by a team of seasoned professionals dedicated exclusively to client objectives. Ironwood’s Small Cap Core investment philosophy reflects not only financial analysis but also the integration of Environmental, Social, and Governance (ESG) considerations, which the Strategy views as important drivers of sustainable business success.⁵
Recognition as a Two-Time PSN Top Gun for Small Cap Core
Ironwood’s Small Cap Core strategy was named a PSN Top Gun for both the quarterly and three-year periods ending June 30, 2025 within the PSN Small Cap Core Universe, which includes 124 firms and 154 products. This means the strategy was recognized with two separate Top Gun awards across distinct time horizons.⁶
PSN, part of Zephyr, conducts an independent evaluation of institutional strategies, identifying those that meet specific screening criteria across multiple performance and risk metrics.⁷
Importantly, these recognitions are not a guarantee of future results but rather third-party recognition of how Ironwood’s Small Cap Core strategy has met PSN’s defined criteria over the measured periods. Investors reviewing such rankings should also consider methodology, context, and their own portfolio needs.
As disclosed by PSN, Ironwood did not pay to be included, nor is PSN a client. The awards were issued on August 19, 2025.⁸
Why Work with Ironwood on Small Cap Core Opportunities?
While market recognition can be meaningful, Ironwood emphasizes the importance of disciplined research and client alignment above accolades. The firm is independently owned, with its investment professionals significantly invested in its strategies, ensuring a high degree of alignment with client interests.
For investors considering small-cap allocations, Ironwood Small cap Core offers:
- A performance track record supported by a repeatable process refined over decades.
- Deep expertise in small and micro-cap equity markets.
- A disciplined approach that leverages volatility as a source of potential opportunity rather than risk alone.
- Commitment to values such as ESG integration and long-term stewardship.
By partnering with Ironwood Small Cap Core, investors gain access to a team that prioritizes patience, prudence, and potential opportunity recognition in a challenging asset class.
Conclusion and Next Steps
The small-cap universe is complex, but it also provides fertile ground for potential innovation and potential growth. Ironwood Investment Management, LLC’s recognition with two PSN Top Guns for Small Cap Core affirms the firm’s disciplined process and the importance of staying committed to long-term investment principles.
For investors seeking to explore small-cap opportunities with a manager focused on research-driven discipline, Ironwood offers a thoughtful perspective. We invite you to learn more about our approach and connect with our team to discuss how it may align with your objectives.
Contact Ironwood Investment Management, LLC today to schedule a consultation and explore how small-cap opportunities might fit within your comprehensive investment strategy. Our experienced team stands ready to provide personalized analysis and strategic guidance tailored to your specific financial objectives.
Additional Ways to Contact Us:
📞 Phone: (617) 757-7600
📧 Email: info@ironwoodfunds.com
Footnotes
- PSN Top Guns, recognition awarded August 19, 2025, for the quarter and three-year period ending June 30, 2025. 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/.
- Ironwood Investment Management, LLC, Small Cap Core Strategy Q4 2024 Presentation, 7.
- Ibid., 13.
- Ibid., 6.
- Ibid., 10.
- PSN Top Guns Ranking Rules and Methodology. Accessed August 2025.
- Ibid.
- Disclosure: PSN is not a client, and no compensation was paid or received in exchange for this ranking.
Important Disclosures & Disclaimers
* Awarded August 19, 2025. 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 Statistics – as of Q2 2025
This blog post is for informational purposes only and should not be construed as investment advice, a recommendation to buy or sell any security, or an offer of investment advisory services. All investments involve risk, including potential loss of principal. Past performance does not guarantee future results. Small-cap investments may be subject to higher volatility and additional risks compared to large-cap investments. Please consult with qualified financial professionals before making investment decisions. Ironwood Investment Management, LLC is a registered investment adviser. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security.
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, representing 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.
Past Performance is Not Indicative of Future Results
The performance data provided in this blog reflects past performance, which may not be representative of future results. Investing in small cap stocks and other securities involves substantial risk, including the potential loss of principal. There is no guarantee that any investment strategy will be successful.
Forward-Looking Statements
This blog contains forward-looking statements, including expectations or forecasts about the performance of the market and specific securities. These statements are based on Ironwood Investment Management, LLC’s current beliefs and expectations but are subject to change without notice. Actual results may differ materially from those expressed or implied due to various risks and uncertainties, including market conditions, economic factors, and changes in government policy.
No Offer or Solicitation
This blog is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities or investments. It is not intended to provide investment advice or to serve as a recommendation regarding any investment strategy. No client-adviser relationship is formed by reading this blog.
Conflicts of Interest
Ironwood Investment Management, LLC may hold positions in or recommend securities discussed in this blog. Clients should carefully review any investment strategy before committing to ensure it aligns with their investment objectives and risk tolerance.Regulatory Disclosure
Ironwood Investment Management, LLC is a registered investment adviser with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training.