After several years of underperformance relative to large caps, US small and mid-cap equities are trading at historically attractive valuations. This valuation gap, which has reached levels last seen in the early 2000s, presents a compelling entry point for long-term investors.

Quantamental is a relatively recent term in finance, bringing together two established approaches to investing: quantitative analysis and fundamental research. Rather than treating them as competing methods, a quantamental framework integrates both into a single, structured process.

While markets sold off, AI fundamentals strengthened meaningfully. Investing is ultimately a process of Bayesian updating, where each new data point shifts the probability distribution of outcomes. In Q1, several high-signal data points emerged that materially increased the probability of a much larger AI opportunity. The magnitude and consistency of recent progress suggest we are earlier, and the outcome is likely bigger than previously assumed.