Rewey Asset Management: Q3 2026 Review of Small-Cap Stocks, Oil and AI
Rewey Asset Management’s Q3 2026 investment letter says its RAM Smid composite fell 7.16%, underperforming the Russell 2500 Value index, which declined 4.36%. Year to date, the portfolio gained 21.69%, ahead of the index’s 18.75% rise. The firm added five positions, sold two and ended the quarter with 34 holdings.
Rewey attributed pressure on smaller-cap stocks to higher long-term Treasury yields, which rose to 5.25% from 4.46% at the end of Q2. The letter links the increase partly to higher oil prices amid the Iran conflict and to borrowing by the US government and major technology companies.
The firm expects large hyperscalers’ data-centre spending to remain strong, citing projected investment of more than $750 billion in 2026. It sees potential opportunities in data-centre supply chains, oil infrastructure and aerospace and defence. Rewey also views AI adopters as potential beneficiaries if the technology delivers productivity gains.
The letter highlights Wesdome Gold Mines as the portfolio’s strongest Q3 performer, up 44.4%, and Ultra Clean Holdings as its weakest, down 42.7% in the quarter but up 214.6% year to date. Rewey also re-established a position in Mayville Engineering, citing improving demand and a more attractive valuation. These are the asset manager’s views and do not constitute investment advice.
Neutral
This is an equity manager’s quarterly commentary, not a crypto-market announcement, and it gives no direct information about digital assets, crypto regulation or blockchain projects. Its market implications for crypto are therefore indirect, supporting a neutral overall assessment.
In the short term, the letter’s focus on higher oil prices and a 5.25% 10-year Treasury yield could weigh on crypto sentiment. Higher yields can make cash and bonds more attractive relative to non-yielding assets such as Bitcoin, while inflation and geopolitical uncertainty may prompt traders to reduce risk. Similar rate-driven episodes have often increased volatility across both technology stocks and crypto, although digital assets do not always move in lockstep with equities.
Over the longer term, the letter’s expectation of sustained AI and data-centre investment may support risk appetite if it contributes to economic growth. However, it does not establish a direct catalyst for crypto adoption or prices. Traders should treat the letter as macro context rather than a standalone trading signal, and monitor Treasury yields, oil prices, central-bank policy, dollar strength and crypto-specific flows for confirmation.