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Needham Small Cap Growth Fund: 1Q21 Commentary

MARKET REVIEW In 1Q21, the Russell 2000 returned 12.70% and the S&P 500 returned 6.17%.  Bullish sentiment continued through early February until inflation fears increased and the long end of the yield curve began to rapidly rise.  This caused a risk-off period for higher growth stocks and a significant rotation out of growth into value […]

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Needham Growth Fund: 1Q21 Commentary

MARKET REVIEW In 1Q21, the S&P 500 returned 6.17%.  There was a significant rotation out of growth into value late in the quarter – the S&P 500 Value Index returned 10.58% in Q1 while the S&P 500 Growth Index finished up 2.06%. Source: Zephyr Informais MACRO OBSERVATIONS We believe accommodative policies have long provided tailwind […]

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Needham Aggressive Growth Fund: 1Q21 Commentary

MARKET REVIEW In 1Q21, the S&P 500 returned 6.17% and the Russell 2000 returned 12.70%. There was a significant rotation out of growth into value late in the quarter – the Russell 2000 Value Index returned 21.17% in Q1 while the Russell 2000 Growth Index finished up +4.88%. Source: Zephyr Informais MACRO OBSERVATIONS We believe […]

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Needham Small Cap Growth Fund: 4Q20 Commentary

MARKET OVERVIEW In 4Q20, the S&P 500 returned 12.15%; Russell 2000 returned 31.37%. For the year ending December 31, 2020, the S&P 500 returned 18.40%; Russell 2000 returned 19.96%.  During 4Q20, low-quality and value factors outperformed, while high-quality, momentum and low-volatility underperformed.[1] [2]  Top-performing industries were energy, materials, financials and consumer discretionary as COVID-19 vaccines […]

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Needham Growth Fund: 4Q20 Commentary

MARKET OVERVIEW In 4Q20, the S&P 500 returned 12.15%; Russell 2000 returned 31.37%. For the year ending December 31, 2020, the S&P 500 returned 18.40%; Russell 2000 returned 19.96%.  Recent commentary indicates accommodative monetary and fiscal policy, which have long provided a tailwind for equities, will continue.  In late August, the Federal Reserve adopted a […]

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Needham Aggressive Growth Fund: 4Q20 Commentary

MARKET OVERVIEW In 4Q20, the S&P 500 returned 12.15%; Russell 2000 returned 31.37%. For the year ending December 31, 2020, the S&P 500 returned 18.40%; Russell 2000 returned 19.96%.  Recent commentary indicates accommodative monetary and fiscal policy, which have long provided a tailwind for equities, will continue.  In late August, the Federal Reserve adopted a […]

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Needham Small Cap Growth Fund: 3Q20 Commentary

Market Review U.S. equities rallied for the second quarter in a row; S&P 500 returned 8.93% in 3Q20; Russell 2000 returned 4.93%. YTD at September 30, the S&P 500 returned 5.57%; Russell 2000 returned -8.69%. 3Q20 experienced significant improvement in economic activity and a recovery in the U.S. labor market.  Companies were able to navigate […]

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Needham Growth Fund: 3Q20 Commentary

MARKET REVIEW U.S. equities rallied for the second quarter in a row; S&P 500 returned 8.93%; Russell 2000 returned 4.93%. YTD at September 30, the S&P 500 returned 5.57%; Russell 2000 returned -8.69%. 3Q20 U.S. GDP estimates called for 32% quarter-on-quarter growth, well ahead of the initial 12% estimate on July 311.  In late August, […]

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Needham Aggressive Growth Fund: 3Q20 Commentary

MARKET REVIEW U.S. equities rallied for the second quarter in a row; S&P 500 returned 8.93%; Russell 2000 returned 4.93%. YTD at September 30, the S&P 500 returned 5.57%; Russell 2000 returned -8.69%. 3Q20 U.S. GDP estimates called for 32% quarter-on-quarter growth, well ahead of the initial 12% estimate on July 311.  In late August, […]

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Needham Small Cap Growth Fund: 2Q20 Commentary

MARKET REVIEW U.S. markets moved sharply (although not broadly) higher from March lows in response to dramatic fiscal and monetary action. Social distancing drove very rapid business model change, rewarding companies that support virtual work, and harming service and high contact businesses. COVID-19 put enormous physical and economic strain on healthcare systems and providers, while […]

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