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- After sharp contractions in equity valuations during 2022, the trend reversed in early 2023. Though we have said this repeatedly over the years, most of the companies we own continue to deliver steady growth.
- The International Growth Composite Portfolio (the “Portfolio”) outpaced the MSCI ACWI ex-USA Index for the first quarter of 2023.
- The top three relative contributors were Evolution AB, MercadoLibre, and Adidas, and the top three relative detractors were Teleperformance, Experian, and Taiwan Semiconductor (not owned). The top absolute contributors were Evolution AB, MercadoLibre, and SAP and the top three absolute detractors were Teleperformance, Experian, and Globant.
- During the quarter, we initiated a new position in Teleperformance and made modest trims to our positions in Aon and Accenture.
- We believe the Portfolio is well stocked with competitively advantaged businesses. Our optimism about the Portfolio over the coming five years stems from our view of each companies’ strengths and growth potential.