Small Cap Growth Commentary 1Q24

MARKET OVERVIEW:

Global financial markets exuded a positive aura during the first quarter as well. Stocks rallied throughout much of the world reflecting improved economic outlooks and the shedding of the post-COVID malaise. In a confirmation that the world is moving past the last vestiges of the Great Financial Crisis of 2008, the Bank of Japan ended its negative interest rate policy after eight years and raised short term interest rates for the first time since 2007. The Nikkei stock market notched its first record in 34 years and has returned about 20% this year.

The Small-Cap Growth Portfolio benefited from security selection in Industrials, Health Care, Consumer Staples, and a lack of exposure to Utilities. However, security selection in and a relative underweight to Information Technology detracted from performance, as did security selection in Communication Services and Financials.