Mid Cap Growth Commentary 1Q24

MARKET OVERVIEW:

The Mid Cap Growth Portfolio performed akin to an athlete training with a speed parachute. While many aspects were positive, particularly our selections in the Industrials sector, our investments in the Software industry held us back. This was due to a combination of not holding the largest, fastest-growing, and unprofitable companies, as well as owning several firms that reported slower but still commendable growth, such as Dynatrace and DoubleVerify.

Our decision to cautiously incorporate exposure to AI and data centers through industrial selections proved insightful. Companies like EMCOR Group and nVent should continue to benefit from these investments. Additionally, their strength in other areas could mitigate results if AI turns out to be more hype than reality.