Jun 04, 2025

I recently learned that Evercore strategists are optimistic about smaller stocks outperforming in June. They believe that small-cap stocks have the potential to shine in June, with historical seasonality and attractive multiples relative to large-cap stocks driving this trend. Despite some caution from other Wall Street banks, Evercore’s team sees opportunity in gaining exposure to smaller stocks through the iShares Russell 2000 ETF, citing companies like Hims & Hers Health and Sprouts Farmers Market as potential beneficiaries in the current market environment.

In addition to the focus on small-cap stocks, there has been a shift in the landscape of venture capital-backed IPOs. Some unicorns like Circle, Omada Health, and Chime are expected to price IPOs at valuations below previous levels, indicating a departure from delaying IPOs for inflated valuations. This change has been accompanied by increased aftermarket performance for companies like Hinge Health and eToro, showcasing positive returns post-IPO.

Furthermore, there was significant antitrust approval for Keysight Technologies’ acquisition of Spirent Communications, highlighting the use of remedies as a path to closing deals. Alongside recent IPO trends and investment deals in the venture capital space, this development underscores a dynamic financial landscape with opportunities for investors to explore and navigate.

There have also been notable moves within the financial industry, such as Carlyle’s former head of direct lending launching a new firm called Nine Dean and key personnel changes at firms like Venrock and EnCap Investments. Additionally, Fannie Mae and Freddie Mac’s complex capital structures have come into focus, with discussions about the potential re-privatization of these mortgage giants and the impact it may have on existing shareholders.

Lastly, various financial innovations have emerged, such as Horizon offering homeowners a way to convert home equity into Bitcoin without monthly payments or interest charges. Private credit continuation funds are being utilized to address challenges faced by private equity funds, while Morgan Stanley has introduced a tool called DevGen.AI that uses artificial intelligence to rewrite outdated code into modern languages. These developments, along with other news in the financial and tech industries, highlight the ever-changing landscape and opportunities for investors and industry participants.

Stay Well!