Grandeur Peak Global Advisors, LLC

The 66 total changes — 16 sold, 16 bought, 30 reduced, 4 increased, zero unchanged — is an unusually high-turnover quarter for a concentrated-quality fund. Most such managers make rotation decisions across multiple quarters; doing it in one window implies both conviction and urgency. The sold names help read the manager's prior positioning: NET (network security and edge computing), SLAB (semiconductor analog), POWI (power semiconductors), UPWK (freelance marketplace), TXRH (casual dining), plus three additional sold positions identified by CUSIPs in the filing data. These names share a quality characteristic — strong competitive positions, healthy balance sheets, above-average returns on capital — but they are all tied to demand curves that slowed in 2024-2025: enterprise IT normalization, semiconductor inventory digestion, and post-COVID consumer discretionary normalization.

The replacements name industrial, machinery, and infrastructure businesses: PTRN, PNTG, MPTI, FSS, VSEC, ICON, RBC, KIDS, HAE, and NEOG. Issuer names from the filing confirm these are aerospace, defense, engineering, and specialty healthcare names. The common exposure is to U.S. industrial and defense spending — government-backed demand with a long planning horizon that is less sensitive to consumer-spend or IT-cycle volatility. The manager is not rotating into cyclical value stocks with fragile balance sheets; the new names retain the quality filter — they are being added for their positioning within a multi-year infrastructure cycle, not for near-term momentum.