Repligen Corporation

Graphic Packaging Holding Company

Fabrinet

Legendary small-cap investor Chuck Royce’s Royce Pennsylvania Mutual Fund added 54 new positions in the second quarter and fully exited nearly 70 holdings. Royce is <a href="https://oninvest.com/article/kak-investirovat-v-small-cap-pat-covetov-ot-caka-rojsa-legendy-uoll-strit">regarded</a>&nbsp;as a pioneer in small-cap investing: more than half a century ago, he was among the first on Wall Street to focus on companies with smaller market capitalizations. Whereas Warren Buffett began investing before the S&amp;P 500 index existed, Chuck Royce started a decade before the Russell 2000 was launched.

What Chuck Royce bought and sold in the second quarter

Voyager Technologies, Inc.

Redwire Corporation

MDA Space Ltd.

Intuitive Machines, Inc.

By 2035, the global space economy, from satellite communications to AI-driven analytics, will reach $1.8 trillion, according to <a href="https://www.mckinsey.com/featured-insights/themes/the-space-economy-is-projected-to-reach-1-8-trillion-by-2035">projections</a> by McKinsey and the World Economic Forum in Davos. Yet while most eyes are on Elon Musk’s SpaceX launches or visions of colonizing Mars, the real money is often being made in the less glamorous corners of the industry. One such player is the small-cap Redwire, the Motley Fool <a href="https://www.fool.com/investing/2025/06/25/7-space-stocks-id-buy-without-hesitation/">highlights</a>&nbsp;in a list of seven space stocks to buy "without hesitation." Wall Street <a href="https://www.marketwatch.com/investing/stock/rdw/analystestimates?mod=mw_quote_tab">expects </a>Redwire&nbsp;stock to double, even though the company remains unprofitable.

From space medicine to Mars colony: Redwire believed to offer triple-digit upside

V2X, Inc.

BofA Securities, a brokerage, has upgraded its rating on defense company V2X to “buy,” arguing that the $4.3 billion government contract it won in early August is “just the beginning.” The stock surged on the news.

'Just the beginning': BofA upgrades rating, TP on defense small cap V2X

WEBTOON Entertainment Inc.

The Walt Disney Company

Shares of online comic platform Webtoon Entertainment <a href="https://sg.finance.yahoo.com/quote/WBTN/">jumped</a>&nbsp;more than 80% yesterday, August 13, hitting their highest level in over a year. The gains came on two announcements by the company: a <a href="https://ir.webtoon.com/news-releases/news-release-details/webtoon-entertainment-and-disney-team-bring-fan-favorite-comics">partnership</a>&nbsp;with Disney to publish comics from franchises such as Spider-Man and Star Wars, and quarterly <a href="https://ir.webtoon.com/news-releases/news-release-details/webtoon-entertainment-inc-reports-second-quarter-2025-financial">results</a>&nbsp;that <a href="https://sg.finance.yahoo.com/news/webtoon-entertainment-wbtn-beats-q2-213502185.html">beat</a>&nbsp;Wall Street expectations. In the wake of the news, three analysts have raised their target&nbsp;prices for the stock.

Comic book platform Webtoon's shares soar on Disney deal and earnings beat

The Chemours Company

Dream Finders Homes, Inc.

The Russell 2000 gained around 2% yesterday, while the S&P 500 added just 0.3%, held back by major tech stocks

Small caps outpace Magnificent 7 as investors bet on Fed rate cuts from September

Parrot S.A.

AeroVironment, Inc.

Kratos Defense & Security Solutions, Inc.

In recent years, the U.S. government has stepped up support for the drone industry. Under the Trump administration, Pentagon budgets for unmanned systems have been repeatedly increased, dedicated programs launched, and export restrictions eased. In 2020, during Trump’s first term, Washington <a href="https://www.armscontrol.org/act/2020-09/news/us-reinterprets-mtcr-rules#:~:text=The%2520Trump%2520administration%2520announced%2520on,See%2520ACT%2520%252C%2520July%252FAugust%25202020">revised</a>&nbsp;the Missile Technology Control Regime (MTCR) to allow more flexible exports of large armed drones to allied countries. This year, Trump has <a href="https://dronelife.com/2025/06/12/explained-what-trumps-executive-orders-on-drones-mean-for-u-s-exports/#:~:text=The%2520order%252C%2520Unleashing%2520American%2520Drone,%25E2%2580%259D">signed</a>&nbsp;new executive orders aimed at accelerating testing, boosting domestic production, and promoting U.S. drone exports.

Three U.S. and European drone stocks that could ride recent momentum in sector

Dominari Holdings Inc.

Shares of micro-cap investment bank Dominari Holdings Inc. jumped 25% yesterday after the company, where Donald Trump’s sons are advisors, reported a nearly fivefold year-over-year surge in revenue and swung to a profit from a loss.

Trump-backed, crypto-leaning Dominari Bank posts 450% top-line growth in 2Q25

Morgan Stanley

Weaker-than-expected U.S. inflation suggests it may be time to pivot into small-cap stocks and other risk assets, according to <a href="https://www.cnbc.com/2025/08/12/what-to-buy-for-a-trade-after-light-cpi-small-caps-and-low-quality.html">Morgan Stanley</a>. Price growth in July <a href="https://en.oninvest.com/article/inflation-in-the-usa-turned-out-to-be-lower-than-forecast-traders-expect-fed-rate-cut-in-september">came in</a> below forecasts despite tariffs, fueling expectations of more aggressive rate cuts by the Fed. That would benefit smaller companies, whose borrowing costs are often tied to Fed rates.

After July inflation, Morgan Stanley asks: Is it time to pivot into small caps?

PSQ Holdings, Inc.

Shares of small-cap PSQ Holdings (also known as PublicSquare), among whose shareholders is one of Trump's sons, is down 7% in premarket trading this morning, August 13, after the company <a href="https://investors.publicsq.com/news/news-details/2025/PublicSquare-Reports-Second-Quarter-2025-Financial-Results-Announces-Strategic-Repositioning-to-Accelerate-Fintech-Growth/default.aspx">announced</a>&nbsp;a&nbsp;strategy change. It will focus on expanding its fintech operations and is likely to sell its other businesses, including its "patriotic" marketplace launched during the pandemic. As a result, PSQ Holdings has withdrawn its 2025 guidance.

PSQ Holdings, with Don Jr. as investor, intends to sell marketplace for patriots

Village Farms International, Inc.

Canopy Growth Corporation

Tilray Brands, Inc.

Shares of cannabis companies surged by double digits yesterday, August 11, driven by a <a href="https://www.bloomberg.com/news/articles/2025-08-11/pot-stocks-soar-on-report-trump-mulling-drug-reclassification?srnd=homepage-europe">comment</a>&nbsp;from U.S. President Trump that he is considering reclassifying the drug, on the federal level, as less dangerous. Analysts say the move could reinvigorate the industry, spur research, and open up new market opportunities.

Cannabis stocks soar as Trump hints at relaxing U.S. federal law

Rumble Inc.

Northern Data AG

Video-sharing platform and cloud services provider Rumble, which <a href="https://www.reuters.com/business/truth-social-host-rumble-weighs-near-12-billion-deal-northern-data-2025-08-11/">hosts</a>&nbsp;Trump-founded Truth Social,&nbsp;<a href="https://s3.amazonaws.com/b2icontent.irpass.cc/2730/rl153736.pdf">plans</a>&nbsp;to buy German data-infrastructure company Northern Data Group. The result would be a player worth about $4.5 billion. The market reaction was mixed: shares of Rumble <a href="https://finance.yahoo.com/quote/RUM/">jumped</a>&nbsp;3% yesterday, August 11, while Northern Data&nbsp;<a href="https://finance.yahoo.com/quote/NB2.DE/">plunged</a>&nbsp;more than 19%.

'Conservative YouTube' Rumble looks to bolster cloud business with $4.5 bln merger

Hexcel Corporation

Cognex Corporation

Tesla, Inc.

Lee Samaha, a contributing stock market analyst at the Motley Fool, has&nbsp;<a href="https://www.fool.com/investing/2025/08/11/3-underdog-stocks-that-could-outperform-the-market/">named</a> three underdog stocks that could outperform the market in the second half of the year. In the first half, they all retreated, but Samaha says the issues that led to their underperformance appear temporary, and their long-term growth prospects look "superb."