There were various drivers of underperformance in the quarter, as there were a multitude of factors that changed significantly, particularly in December. These factors were broadly negative for our style of management as more highly levered, lower-margin, and lower-earnings growth companies outperformed.
While the full-quarter results still lagged the benchmark, we were encouraged by the portfolio’s outperformance during the strong move into year-end as we saw the breadth of positive performance spread more evenly across sectors.
Equity markets rallied to close out the year as fiscal conditions loosened; the Funds performed in line with benchmarks.
2023 Review and 2024 Outlook