Rewey Asset Management, an investment management company, released its “RAM Smid Composite” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was favorable for small-cap stocks. The composite increased 10.70% in the quarter, outperforming the 8.17% gain for the benchmark Russell 2500 Value Total Return Index. Year-to-date, the composite returned 9.29% vs. 9.29% for the benchmark. Market capitalization likely contributed to performance in the third quarter of 2025. Smaller market cap indices in the Russell family outperformed their larger counterparts. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, RAM Smid Composite highlighted stocks such as Ultra Clean Holdings, Inc. (NASDAQ:UCTT). Ultra Clean Holdings, Inc. (NASDAQ:UCTT) develops and distributes supplies for the semiconductor industry. The one-month return of Ultra Clean Holdings, Inc. (NASDAQ:UCTT) was 6.40%, and its shares lost 25.72% of their value over the last 52 weeks. On October 13, 2025, Ultra Clean Holdings, Inc. (NASDAQ:UCTT) stock closed at $27.78 per share, with a market capitalization of $1.26 billion.
RAM Smid Composite stated the following regarding Ultra Clean Holdings, Inc. (NASDAQ:UCTT) in its third quarter 2025 investor letter:
“We continued to build our position in Ultra Clean Holdings, Inc. (NASDAQ:UCTT), adding on price weakness early in the quarter. UCTT is a $1.2 billion market cap supplier for the semiconductor capital equipment industry, focusing on gas delivery systems. It also provides cleaning services for installed equipment. Lam Research is UCTT’s largest customer at 33% of revenues, Applied Materials is number two at 23% while service makes up 12% of revenues. UCTT shares ended the quarter at $27.29, well below their 52-week high of $41.84, due to the continued weak semi capital equipment (capx) spending environment in 1H25, which was likely impacted by the global investment pause caused by the ‘Liberation Day’ tariffs. We see a compelling investment outlook for UCTT as we think the semi-capx cycle has begun to inflect positively, while street revenue and earnings estimates have yet to discount this expected improvement.
