Overview
- Large Cap returned 6.3% gross (6.2% net) versus the Russell 1000’s 8.0%, Small Cap gained 1.9% (2.4% net) versus the Russell 2000’s 12.4%, and Income Equity rose about 6.0% gross (5.8% net) versus the Russell 1000 Value’s 5.3%.
- Alphabet led contributors on strong core results, faster uptake of AI offerings and favorable legal news, while NewMarket benefited from lower input costs, a defense-linked ramp and debt paydown.
- TE Connectivity was cited for AI-related demand and margin strength, and Armstrong World Industries beat expectations on better volumes, advantageous vertical exposure and operating leverage.
- Fiserv detracted after slower growth and margin pressure in its Merchant unit prompted reduced guidance, and Progressive lagged on concerns about decelerating policy and premium growth.
- The firm exited Bruker on persistent headwinds and sold Fidelity National Information Services in the Income Equity portfolio, while initiating Equitable Holdings after a capital-releasing reinsurance deal and adding Cummins and UnitedHealth for long-term advantages.