Renaissance Investment Management, an investment management company, released its Q4 2025 “Small Cap Growth Strategy.” A copy of the letter can be downloaded here. In the fourth quarter, Small Cap Growth stocks posted their third consecutive quarter of gains, with the Russell 2000 Growth Index increasing by 1.2%. Both the Health Care and Real Estate sectors performed positively during this period. The Strategy maintains its preference for reasonably priced growth companies that demonstrate above-average growth potential and rising earnings estimates. The Renaissance Small Cap Growth Strategy underperformed the Index and experienced a decline in the quarter. The “low quality” rally that began in the second quarter persisted into the fourth quarter. Additionally, companies with negative earnings emerged as strong performers in the fourth quarter, achieving even greater gains than the lowest ROE stocks. Looking ahead to 2026, the Strategy remains optimistic about the positive environment for small-cap growth stocks. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Renaissance Small Cap Growth Strategy highlighted Impinj, Inc. (NASDAQ:PI). Impinj, Inc. (NASDAQ:PI) is a technology company that designs and manufactures RFID chips, scanners and other connectivity solutions. On April 2, 2026, Impinj, Inc. (NASDAQ:PI) closed at $100.45 per share. One-month return of Impinj, Inc. (NASDAQ:PI) was 6.53%, and its shares gained 37.60% over the past 52 weeks. Impinj, Inc. (NASDAQ:PI) has a market capitalization of $3.04 billion.
Renaissance Small Cap Growth Strategy stated the following regarding Impinj, Inc. (NASDAQ:PI) in its fourth quarter 2025 investor letter:
“Impinj, Inc. (NASDAQ:PI), a supplier of RFID chips and scanners, contributed the most to relative performance during the quarter. Prior to reporting earnings in late October, the stock reached near-peak valuation levels on expectations of a significant announcement for its grocery-target ed products. We chose to exit our position, as we believed at the time that the stock was fully valued. After the company reported solid earnings but no new grocery announcement, the stock pulled back over 35%. We used the opportunity to renew our position, as we believe the long-term growth potential for their grocery revenues is unchanged.”
Impinj, Inc. (NASDAQ:PI) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 25 hedge fund portfolios held Impinj, Inc. (NASDAQ:PI) at the end of the fourth quarter, compared to 32 in the previous quarter. In Q4 2025, Impinj, Inc. (NASDAQ:PI) reported revenue of $92.8 million, down 3% sequentially and up 1% year-over-year. While we acknowledge the risk and potential of Impinj, Inc. (NASDAQ:PI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Impinj, Inc. (NASDAQ:PI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Impinj, Inc. (NASDAQ:PI) and shared the list of best Internet of Things (IoT) stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
