Small Cap Investing Due Diligence, A 2025 Look Back

Introduction

The past year reinforced why disciplined research remains central to small cap investing. As market narratives shifted and volatility created dispersion across sectors, the importance of first hand diligence, structured analysis, and ongoing engagement with company leadership became increasingly clear. For investors focused on small cap equities, understanding businesses beyond financial statements can support more informed decision making and help identify potential long term opportunities.

Throughout 2025, Ironwood Investment Management, LLC remained focused on applying a research driven approach to small cap investing due diligence. This included industry recognition, onsite company visits, and direct engagement with management teams. These efforts reflect Ironwood’s belief that thorough diligence and repeatable processes are essential when navigating the small cap landscape.

A Year of Recognition and Reflection in Small Cap Investing

Industry recognition can serve as a moment to reflect on process rather than outcomes. In 2025, the Ironwood Small Cap Core Strategy was honored with two PSN Awards*, acknowledging the firm’s commitment to disciplined research, operational excellence, and client focused investment management. While awards do not predict future results, they can highlight the consistency of an investment organization’s approach and its emphasis on institutional standards.

These recognitions coincided with an active year of research travel and engagement. From conferences to onsite company visits, Ironwood continued to emphasize diligence as a cornerstone of its small cap investment philosophy. This focus aligns with the firm’s long held view that deep understanding of companies and management teams supports more informed assessments of potential opportunities.

Why Onsite Due Diligence Matters in Small Cap Investing

Small cap companies often operate outside the spotlight of broad market coverage. As a result, onsite visits and direct conversations with leadership teams can provide valuable context that may not be fully captured in public disclosures. Observing operations, understanding corporate culture, and assessing strategic priorities firsthand can enhance an investor’s perspective.

In November, Ironwood attended the Charles Schwab conference in Denver, Colorado, engaging with peers and company representatives to exchange insights on evolving market conditions. Events like these complement onsite visits by broadening perspective while reinforcing the importance of bottom up research in small cap investing due diligence.

Ironwood’s research team also conducted company visits that exemplify this hands on approach. Donald Collins, CFA, Executive Managing Partner and CIO of Ironwood Investment Management, LLC, visited Aspen Aerogels in Massachusetts, meeting with management and touring the manufacturing facility. Seeing production processes and innovation initiatives firsthand helped deepen understanding of the company’s operations and strategic direction.

Management Engagement as a Core Research Discipline

Direct engagement with leadership teams is a defining element of Ironwood’s due diligence process. Recently, Donald Collins of Ironwood Investment Management, LLC met with Cheryl R. Blanchard, Ph.D., CEO, and Steve Griffin, CFO, of Anika Therapeutics. Anika focuses on hyaluronic acid based therapies for joint repair and pain management, operating in a highly specialized segment of the healthcare market.

The visit included a tour of Anika’s manufacturing and research and development facilities. These interactions provided insight into the company’s operational rigor, leadership priorities, and long term strategy. For Ironwood, such meetings help evaluate qualitative factors that can influence a company’s ability to navigate industry challenges and pursue potential growth responsibly.

Connecting Site Visits to Long Term Investment Thinking

Site visits are not isolated events within Ironwood’s investment process. They are integrated into a broader framework designed to assess business quality, leadership capability, and sustainability of operations. This approach reflects Ironwood’s focus on what it refers to as High I-Q companies, businesses characterized by thoughtful management, durable business models, and disciplined capital allocation.

By engaging directly with companies, Ironwood aims to better understand how management teams respond to operational challenges, regulatory considerations, and competitive dynamics. These insights support a long term, research driven investment approach rather than short term market reactions.

Why Small Cap Investing Due Diligence Requires Discipline

Small cap markets can experience heightened volatility, driven by liquidity dynamics and shifting investor sentiment. In this environment, disciplined due diligence can help investors remain focused on fundamentals rather than short term price movements. Ironwood’s process emphasizes patience, structured analysis, and ongoing monitoring to assess potential risks and opportunities over time.

This disciplined mindset is particularly relevant when evaluating emerging technologies, specialized healthcare solutions, or industrial innovation, sectors often represented within the small cap universe. By grounding decisions in comprehensive research, Ironwood seeks to support prudent portfolio construction aligned with client objectives.

Why Work with Ironwood on Small Cap Investing Due Diligence

Ironwood Investment Management, LLC brings decades of experience applying a repeatable, research focused approach to small cap investing. The firm’s emphasis on onsite diligence, management engagement, and long term thinking reflects a commitment to understanding businesses beyond surface level metrics.

Ironwood’s team based structure encourages collaboration and debate, supporting well rounded investment decisions. By maintaining a disciplined framework and focusing on High I-Q companies, Ironwood aims to identify potential opportunities while managing risk thoughtfully.

Investors seeking a disciplined approach to small cap investing due diligence may benefit from learning more about Ironwood’s research process and investment philosophy. To continue the conversation, engage with Ironwood Investment Management, LLC through a consultation or explore additional insights on the firm’s blog.

Contact Us

To learn more about Ironwood Investment Management, LLC’s Small Cap Core strategy, investment philosophy, or the PSN Top Guns methodology, we invite you to connect with our team.

 📞 Phone: 617-757-7600
📧 Email: info@ironwoodfunds.com
🌐 Website: www.ironwoodinvestmentmanagement.com

Schedule a Consultation:
https://scheduler.zoom.us/brian–collins

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Footnotes

¹ Ironwood Investment Management, LLC, Small Cap Core Strategy Overview, Q4 2024.
² CFA Institute, Global Investment Performance Standards Handbook.
³ U.S. Securities and Exchange Commission, Investment Adviser Marketing Rule Guidance.

People Also Ask, FAQ Snippets

What is small cap investing due diligence?
Small cap investing due diligence is the process of evaluating companies through financial analysis, management engagement, and operational review to assess potential opportunities and risks.

Why are site visits important in small cap investing due diligence?
Site visits allow investors to observe operations firsthand, meet leadership teams, and gain insights that may not be available through public disclosures alone.

How does Ironwood approach small cap investing due diligence?
Ironwood Investment Management, LLC applies a research driven process that includes onsite visits, management meetings, and long term fundamental analysis.

Does thorough due diligence reduce investment risk?
While no process can eliminate risk, disciplined small cap investing due diligence can support more informed decision making and risk awareness.

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Important Disclosures & Disclaimers

* PSN Top Guns Awards: Awarded November 18, 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 Q4 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.

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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