The Large Cap Equity Fund posted a total return of 4.23% for the quarter, compared with 5.23% for the Funds benchmark, the S&P 500® Index. Stock selection was the primary detractor, particularly in the consumer discretionary, industrials and financials sectors, which offset positive stock selection results in the information technology, materials and energy sectors. Additionally, overweight positions in the consumer discretionary, financials and healthcare sectors modestly detracted from results. Furthermore, the Fund had an overweight position in high-quality names, which tended to lag the market during the quarter.
We expect our process and deep fundamental research will deliver results as the market transitions from one that was led by multiple expansion to one primarily led by earnings growth and company-specific drivers. We anticipate high-quality names will rebound and valuation discounts will revert to historical levels as Fed policy normalizes. We will continue to look for reasonably valued companies with solid growth prospects and strong business models.
If you are a growth-oriented, moderate-risk investor looking for long-term capital appreciation without concern for current income, you will want to consider this fund as a core holding for your portfolio.
- Combine forward looking fundamental stock analysis and intelligent portfolio construction with the goal of providing consistent returns over time.
- Actively manage risk levels to be commensurate with performance objectives and avoid unintended risks.
- Maintain a core-style fund that invests primarily in large-cap stocks with some mid-cap exposure.