Category: Q4 2023

Bank Sector – Q4 2023 Commentary

March 5th, 2024
For 4Q, the Bank Sector Strategy returned 22.45% (gross of fees) and 22.15% (net of fees) vs. the Russell 2000® Value Index Bank Subsector benchmark of 28.63%.  The portfolio lagged as banks with higher short interest, many which we believe may be permanently impaired, outperformed.  For the full year 2023, the Bank Sector Strategy returned…

SMID Cap Growth – Q4 2023 Commentary

January 22nd, 2024
Equity markets returns in 2023 were ultimately quite constructive, but the path was very volatile and dominated by expectations for interest rates. All year long, market participants were hyper-focused on every nuanced bit of news that might indicate the future path of the Fed Funds Rate, a key macro factor that will impact the depth…

Small Cap Growth – Q4 2023 Commentary

January 22nd, 2024
Equity markets returns in 2023 were ultimately quite constructive, but the path was very volatile and dominated by expectations for interest rates. All year long, market participants were hyper-focused on every nuanced bit of news that might indicate the future path of the Fed Funds Rate, a key macro factor that will impact the depth…

ESG SMID Cap – Q4 2023 Commentary

January 22nd, 2024
The Russell 2500™ index returned 13.35% in the fourth quarter of 2023 and 17.42% for the full year.  Overall, 2023 was a volatile year for Small- and Mid-Cap US equities.  The regional banking crisis took center stage early in the year, and tightening actions from the US Federal Reserve gave way to an outlook for stable…

Small Cap Select SRI – Q4 2023 Commentary

January 22nd, 2024
The Market In General: US small-cap stocks surged in the fourth quarter of 2023 as Federal Reserve officials revised their ‘higher-for-longer’ interest rate expectations.  Prompted by sustained economic growth and robust employment data, along with continued disinflation, the Fed signaled the conclusion of its rate-hiking cycle and projected multiple rate cuts in 2024.  These shifts…

Small Cap Select – Q4 2023 Commentary

January 22nd, 2024
The Market In General: US small-cap stocks surged in the fourth quarter of 2023 as Federal Reserve officials revised their ‘higher-for-longer’ interest rate expectations.  Prompted by sustained economic growth and robust employment data, along with continued disinflation, the Fed signaled the conclusion of its rate-hiking cycle and projected multiple rate cuts in 2024.  These shifts…

Small Cap Core – Q4 2023 Commentary

January 22nd, 2024
The Market  The positive boost to the market during the fourth quarter was delivered by the Federal Reserve. Having burnished its reputation as a force of slowly measured change over recent years, the now overused term “fed pivot” quickly graced the pages of the financial press. We’ve noted the pressure the Fed has applied to…

Micro Cap Opportunities – Q4 2023 Commentary

January 22nd, 2024
Market Review The Russell Microcap® Index increased 16.06% in the fourth quarter of 2023, as investor sentiment turned toward the potential impact of interest rate cuts and slowing inflation in 2024. This dramatic change in expectations precipitated a significant rebound in every sector except for Energy during Q423, which declined 3.23% yoy due to weakening international…

Micro Cap – Q4 2023 Commentary

January 22nd, 2024
Market Review The Russell Microcap® Index increased 16.06% in the fourth quarter of 2023, as investor sentiment turned toward the potential impact of interest rate cuts and slowing inflation in 2024. This dramatic change in expectations precipitated a significant rebound in every sector except for Energy during Q424, which declined 3.23% yoy due to weakening international…

All Cap Value – Q4 2023 Commentary

January 22nd, 2024
The second half of 2023 experienced strong performance from stocks and bonds as inflation continued to cool, and the economy continued to grow. Inflation’s recent moderation has been driven by lower energy prices, improving supply chain costs and Federal Reserve tightening. Even with the sharp increase in Federal Reserve tightening, the economy has remained surprisingly…

Mid Cap Value – Q4 2023 Commentary

January 22nd, 2024
Equity markets rose sharply during the 4th quarter of 2023.  The Russell Midcap® Value (RMV) index was up 12.1%, and all indices posted strong gains.  Markets reacted positively to the Federal Reserve’s decision to hold its policy rate in the 5.25 – 5.50% range, as well as commentary from Fed Chair Jerome Powell suggesting we have…

SMID Cap Value – Q4 2023 Commentary

January 22nd, 2024
Equity markets rose sharply during the 4th quarter of 2023.  The Russell 2500™ Value (R25V) Index increased 13.76%, the Russell 2500™ Growth (R25G) Index was up 12.59%, and the S&P 500® Index (S&P) rose 11.69%.  Markets reacted positively to the Federal Reserve’s decision to hold its policy rate in the 5.25-5.50% range, as well as commentary from Fed…

Extended Small Cap – Q4 2023 Commentary

January 22nd, 2024
In many respects, the market entered 2023 at opposite conditions from its entry into 2022, particularly in terms of sentiment, expectations and economic growth or inflationary positioning.  After a difficult 2022 from a total return perspective, investors were much more cautious coming into 2023.  While there were plenty of quarter-to-quarter shifts of those sentiments, the…

Small Cap Value – Q4 2023 Commentary

January 22nd, 2024
Equity markets rose sharply during the 4th quarter of 2023.  The Russell 2000® Value (R2V) Index increased 15.26%, the Russell 2000® Growth (R2G) Index was up 12.75%, and the S&P 500® Index (S&P) rose 11.69%.  Markets reacted positively to the Federal Reserve’s decision to hold its policy rate in the 5.25-5.50% range, as well as commentary…