Thrivent Small Cap Fund Returns 25.54% Amid Mixed Software Performance

Key Facts

1Thrivent Small Cap Growth Fund returned 25.54% during the quarter, modestly underperforming the Russell 2000 Growth Index.

2JFrog reported stronger than expected revenue growth as customers consolidate around its software delivery platform.

3Guidewire underperformed due to a valuation reset in high-multiple software and the slipping of several deals to the next quarter.

Amid a persistent focus on growth opportunities within the technology sector, the Thrivent Small Cap Growth Fund released its Q2 2026 results. The fund delivered a 25.54% return during the quarter, slightly trailing the Russell 2000 Growth Index. JFrog emerged as a top performer due to revenue growth exceeding expectations, while Guidewire struggled under a valuation reset for high-multiple software stocks and the shifting of several deals to future periods.

The robust performance of JFrog reflects a broader market trend toward software delivery platform consolidation, aligning with industry reports of increased adoption of AI-assisted development tools. Compared to cloud software peers, the market experienced significant valuation volatility during the first half of 2026, as interest rate concerns pressured high-growth companies with elevated price multiples per market data.

Looking ahead, investors are monitoring the stabilization of small-cap valuations following recent US economic data. According to available data, the US Inflation Rate (CPI) released on July 14, 2026, slowed to 3.5% annually, which may provide relief for growth-oriented stocks. Traders are also watching upcoming speeches from Federal Reserve officials to gauge the monetary policy path and its impact on capital costs for emerging companies.