Managers of the Royce Small-Cap Total Return Fund have <a href="https://www.royceinvest.com/insights/2025/1Q25/royce-small-cap-total-return-4q24-update-and-outlook?utm_source=in_materials">revealed</a> which holdings added the most to and subtracted the most from the portfolio’s performance in the 2024 fourth quarter and full year. Royce Investment Partners, founded by <a href="https://kz.kursiv.media/2024-08-15/mrdr-royce/?utm_source=in_materials">Wall Street legend</a> Chuck Royce, generally focuses on small-cap investments, while the Royce Small-Cap Total Return Fund <a href="https://www.royceinvest.com/funds/royce-small-cap-total-return-fund/rytrx?utm_source=in_materials">invests</a> in small caps that pay dividends.

Royce Small-Cap Total Return Fund reveals biggest contributing and detracting holdings

Applied Digital, a builder of data centers, whose shares are held by AI chip market leader Nvidia, has reached an agreement for Australia-based Macquarie to invest up to $5 billion in Applied Digital’s AI data center projects. Following the news, Applied Digital stock <a href="https://www.marketwatch.com/investing/stock/apld/analystestimates?mod=mw_quote_tab&amp;utm_source=in_materials">surged</a> almost 10% before giving back around 6% in premarket trading the next day.

Nvidia-backed data center builder Applied Digital to raise up to $5 billion; shares rise

Shares of H&amp;E Equipment Services, a small-cap industrial equipment rental company, <a href="https://www.marketwatch.com/investing/stock/hees?utm_source=in_materials">more than doubled</a> on Tuesday, January 14, hitting a record high. The trigger was an <a href="https://investor.he-equipment.com/news-releases/news-release-details/united-rentals-acquire-he-equipment-services-inc?utm_source=in_materials">announcement</a> that the company would be acquired at a premium by its largest competitor, United Rentals. Analysts say this is an opportune time for such a deal.

Equipment rental company H&amp;E doubles on announcement of its acquisition by rival

Billionaire Bill Ackman aims to create a "modern-day Berkshire," a reference to the investment company of Warren Buffett, using the real estate developer Howard Hughes Holdings (HHH) as the foundation. Ackman's hedge fund, Pershing Square, has proposed acquiring additional shares of HHH at a premium and merging it with a new subsidiary. Following this announcement, HHH shares <a href="https://www.marketwatch.com/investing/stock/hhh?utm_source=in_materials">surged</a> nearly 10% yesterday, Monday, January 13, Tuesday, and continued climbing today.

Billionaire Ackman to build 'modern-day Berkshire'

Zacks Small-Cap Research (Zacks SCR) has <a href="https://scr.zacks.com/news/news-details/2025/PERF-Perfect-Corp-Closes-Acquisition-of-Wannaby/default.aspx?utm_source=in_materials">raised</a> its target price for Perfect Corp., a smaller company that develops AI solutions for the beauty and fashion industries, by almost 15% as it believes the company's recent <a href="https://www.perfectcorp.com/business/news/wannaby-acquisition-perfect-corp?utm_source=in_materials">acquisition</a> of a competitor significantly expands its capabilities. The acquired company is Wannaby, a virtual try-on platform previously owned by luxury online retailer Farfetch. Wannaby's clients include such names as Lululemon, Dolce &amp; Gabbana, and Diesel.

AI beauty solutions developer Perfect Corp. sees target price upgraded after acquisition of competitor

Quotes on Gryphon Digital Mining, which brands itself as a carbon-neutral bitcoin miner, climbed about 2% in premarket trading today, Monday, January 13, following a nearly 20% surge ahead of the weekend. These gains came after the company <a href="https://ir.gryphondigitalmining.com/news-events/press-releases/detail/41/gryphon-digital-mining-signs-definitive-agreement-for-hpcai-asset-scalable-to-4gw-of-green-energy-through-natural-gas-and-carbon-sequestration?utm_source=in_materials">announced</a> an agreement to purchase an energy site in Canada, which Gryphon believes will help the company to expand into AI and high-performance computing data center infrastructure. Gryphon expects the newly acquired asset to generate over $5 billion in annual revenue at full capacity.

Gryphon, bitcoin miner with AI focus, gains on acquisition of energy asset

Shares of the small-cap AtlasClear Holdings, a fintech firm <a href="https://www.atlasclear.com/?utm_source=in_materials&amp;utm_source=in_materials">developing</a> a trading platform aimed at small- and middle-market financial services firms, <a href="https://www.marketwatch.com/investing/stock/atch?utm_source=in_materials">plunged</a> nearly 12% on Friday, January 10, to hit an all-time low. The trigger was the <a href="https://investors.atlasclear.com/news/news-details/2025/AtlasClear-Holdings-Inc.-2025-Stockholder-Letter/default.aspx?utm_source=in_materials">reveal</a> of a new strategy, according to which AtlasClear said it will focus on digital assets. It expressed confidence that the incoming administration of Donald Trump would "finally provide the clarity the U.S. markets have been lacking."

Fintech AtlasClear announces new strategy, sees shares slide to new all-time low

In an interview, Francis Gannon, co-CIO at Royce, founded by Wall Street legend Chuck Royce, has <a href="https://www.royceinvest.com/insights/small-cap-interview?utm_source=in_materials">spotlighted</a> four small-cap stocks that two Royce funds have “high long-term confidence” in.

Royce shares four high-conviction long-term holdings

On January 6, 2025, Israel’s Gilat Satellite Networks, which develops, manufactures, and markets ground-based satellite systems for in-flight connectivity, <a href="https://www.gilat.com/pressreleases/gilat-completes-acquisition-of-stellar-blu-solutions-llc/?utm_source=in_materials">completed</a> its <a href="https://www.gilat.com/wp-content/uploads/2024/12/Amendment-to-Purchase-Agreement-to-Acquire-Stellar-Blu-Solutions-LLC.pdf?utm_source=in_materials">acquisition</a> of U.S.-based Stellar Blu, a provider of avionics solutions and satellite communications terminals. In an exclusive interview with Kursiv.Investments, Gilat CFO Gil Benyamini explained the significance of the deal and the company’s future plans.

'We saved time': CFO of satellite communications company Gilat discusses Stellar Blu acquisition and dot-com crisis lessons

On Wednesday, January 8, shares of plant-based energy drink producer Yerbaé Brands Corp <a href="https://finance.yahoo.com/quote/YERB-U.V/?utm_source=in_materials">spiked</a> more than 20% to hit a four-month high following the <a href="https://investors.yerbae.com/press-release/safety-shot-to-acquire-yerbae-brands-corp-adding-approximately-12-million-to-annual-revenue-and-creating-a-potential-force-in-wellness-and-functional-beverages/?utm_source=in_materials">announcement</a> of its acquisition by <a href="https://safetyshotofficial.com/?utm_source=in_materials">U.S.-based</a> beverage maker Safety Shot. Meanwhile, Safety Shot stock plummeted following the news. The transaction values Yerbaé at more than $15 million in equity value.

Energy drink producer Yerbaé surges 20% after announcing acquisition by competitor

The stock price of Sana Biotechnology surged 160% on January 8, with intraday gains exceeding 300%. The company <a href="https://ir.sana.com/news-releases/news-release-details/sana-biotechnology-announces-positive-clinical-results-type-1?utm_source=in_materials">announced</a> a groundbreaking achievement: successfully transplanting insulin-producing pancreatic cells into a patient with type 1 diabetes without the need for immunosuppression. Sana hopes this breakthrough will revolutionize the nearly <a href="https://www.mordorintelligence.com/ru/industry-reports/diabetes-drugs-market?utm_source=in_materials">$100 billion</a> diabetes treatment market. Analysts see potential for the company’s shares to more than double in value.

Shares of Sana soar following breakthrough in diabetes therapy trials

On Tuesday, January 7, shares of small cancer drug developer MAIA Biotechnology <a href="https://www.marketwatch.com/investing/stock/maia?utm_source=in_materials">jumped</a> more than 15% to hit their highest level in a month and a half as investors rushed to buy MAIA shares on news of the company’s <a href="https://ir.maiabiotech.com/news-events/press-releases/detail/122/maia-biotechnology-announces-clinical-supply-agreement-with?utm_source=in_materials">new partnership</a> with leading Chinese pharmaceutical firm BeiGene, positioning the duo to target markets worth tens of billions of dollars.

Small caps