In the second quarter of 2025, the AMG Frontier Small Cap Growth Fund (Class N) delivered a notable performance, achieving a return of 13.91%. This impressive figure exceeded its established benchmark, the Russell 2000 Growth Index, which posted an 11.97% return over the same period. This positive turnaround was particularly significant as it effectively offset a substantial portion of the declines experienced in the preceding quarter. The robust gains were broadly distributed across various sectors, with technology, healthcare, and consumer staples emerging as key drivers of the fund's outperformance, each contributing meaningfully to the overall success.
The investment landscape during the second quarter of 2025 was characterized by considerable volatility, yet equities managed to climb higher, recouping a significant portion of their earlier losses. Within this dynamic environment, the AMG Frontier Small Cap Growth Fund (Class N) showcased its strategic agility and effective portfolio management. Its 13.91% return for the quarter demonstrated its capacity to generate superior returns compared to its benchmark, the Russell 2000 Growth Index, which posted 11.97%.
Over the span of the past twelve months, concluding on June 30, 2025, the Fund's overall performance was a slight decrease of 0.66%, indicating that while the second quarter was strong, the earlier periods faced more challenging conditions. Despite this, the recent quarterly success highlights the fund's ability to navigate market complexities and capitalize on growth opportunities in the small-cap segment.
The sectors that primarily fueled the fund's strong second-quarter results included technology, healthcare, and consumer staples. These industries collectively provided substantial contributions, with each sector playing an equally important role in the fund's ability to surpass its benchmark. This diversified source of alpha underscores a balanced approach to sector allocation and stock selection within the small-cap growth universe.
Ultimately, the second quarter of 2025 proved to be a period of significant recovery and strong gains for the AMG Frontier Small Cap Growth Fund (Class N). By outperforming its benchmark, the Russell 2000 Growth Index, and showing resilience across key sectors, the fund underscored its strategic positioning and effective management in an ever-evolving market, successfully reclaiming much of its prior quarter's ground.