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Small Cap Update

October 25, 2022

Negative earners a factor in driving underperformance

Quarter 3 was challenging across styles except for small cap growth, which outperformed. Investors expressed their appetite for risk by buying some of the negative-earning issues in the small cap universe. The Glenmede Small Cap Equity Strategy, which tends to avoid negative earners, underperformed the benchmark, gross of fees, in the quarter. The Industrials sector was a bright spot, driven largely by individual security selection.