The Large Cap Equity Fund posted a total return of 0.50% for the quarter, compared with 1.81% for the Funds benchmark, the S&P 500® Index. Stock selection detracted from results, particularly in the energy and industrials sectors. In addition, the Fund had an overweight position in high-quality names, which tended to lag the market during the quarter. Stock selection generated positive results in the information technology and utilities sectors.
Looking ahead, we believe our process of disciplined fundamental analysis and investments in companies that reach our expected return hurdle rate over long holding periods should succeed. As the Fed begins the process of removing stimulus from the market, we believe company-specific attributes, rather than the broader macroeconomic environment, will drive performance. Specifically, we believe the
low-quality valuation-driven rally will give way to an environment that rewards companies with solid long-term growth prospects.
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.