Frontier Capital Management released the Q2 2026 investor letter for AMG Frontier Small Cap Growth Fund, whose Class N shares returned 21.90% during the quarter, below the Russell 2000 Growth Index's 25.71% gain. Over the preceding year, however, the fund gained 44.45%, ahead of the benchmark's 38.74% return. Small-cap stocks continued to outperform large caps, while growth stocks exceeded value stocks for the first time in four quarters. Small- and mid-cap hardware companies supporting AI infrastructure were key contributors, with technology helping performance and financials and industrials detracting. Silicon Motion Technology Corporation was highlighted as a notable contributor. The NAND flash-controller maker closed at $278.07 on September 28, 2026, giving it a $9.36 billion market capitalization, after gaining approximately 197.98% year to date. The fund said Silicon Motion was gaining consumer-controller market share as peers shifted toward data-center products, though it significantly trimmed the position after the stock's sharp rise. Looking ahead, equity prices may be influenced by energy prices and the possibility of lower interest rates, which could support consumer activity in housing and autos. The article said 53 hedge-fund portfolios held Silicon Motion at the end of the second quarter, up from 40 in the previous quarter, although the stock was not among the 40 most popular hedge-fund holdings.