Frontier Capital Management, an investment management company, released its “Frontier Small Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. Class N shares of the fund returned -14.43% in the first quarter, compared to -11.12% for the benchmark Russell 2000 Growth Index. The fund returned -14.50% for the 12 months ended March 31, 2025, compared to the benchmark return of -4.86%. US equities traded lower in the first quarter, mainly during the last week of the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first quarter 2025 investor letter, Frontier Small Cap Growth Fund highlighted stocks such as CACI International Inc (NYSE:CACI). CACI International Inc (NYSE:CACI) provides expertise and technology to enterprise and mission customers in support of national security in the intelligence, defense, and federal civilian sectors. The one-month return of CACI International Inc (NYSE:CACI) was 9.78%, and its shares gained 15.62% of their value over the last 52 weeks. On July 3, 2025, CACI International Inc (NYSE:CACI) stock closed at $489.02 per share with a market capitalization of $10.754 billion.
Frontier Small Cap Growth Fund stated the following regarding CACI International Inc (NYSE:CACI) in its first quarter 2025 investor letter:
“The market volatility has created several opportunities to invest in companies at prices we find attractive, and thus we have initiated new positions in a variety of industries. Examples include CACI International Inc (NYSE:CACI) Amentum Holdings, Inc., Essential Properties Realty Trust, Inc., and DigitalOcean Holdings, Inc. CACI and Amentum both provide essential services to the Department of Defense and other governmental agencies. These companies recently saw a dramatic decline in their stock prices as investors became concerned that the newly formed Department of Government Efficiency (DOGE) would recommend cuts across all government areas. While pruning inefficient spending is likely, we believe that the mission critical nature of the projects on which CACI and Amentum work, together with the considerable cost the government would incur to bring this work in-house, are testaments to the value these companies provide. While some projects may be delayed, increased spending on defense and digital infrastructure should enable these companies to grow earnings during the next few years. Essential Properties owns and leases properties with a focus on regional and local mid-level markets. It is well capitalized and has a low percentage of leases rolling off over the next few years.”
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