1Q2024 - Global Growth Commentary
Extreme optimism seems to dominate parts of the market, but this does not influence our long-term approach.
- During the first quarter, the Global Growth Composite Portfolio (the “Portfolio”) trailed the MSCI ACWI (the “Index”) Index,
net of fees. - Markets staged a two-month rally at the end of 2023, which continued unabated into the first quarter, with much of the same high-momentum, highly cyclical leadership.
The largest relative contributors to the Portfolio’s performance during the quarter were SAP, Apple (not owned), and Amazon. From an absolute perspective, the top contributors were Amazon, SAP, and Microsoft. - The largest relative detractors to the Portfolio’s performance during the first quarter were NVIDIA (not owned), Adobe, and Workday. From an absolute perspective, the largest detractors were Adobe, Globant, and L’Oréal.
- During the quarter, we initiated new positions in Sage Group, Airbnb, and Paycom and added to our existing position in Globant. By contrast, we eliminated our position in Nestlé and trimmed our existing position in Accenture.
- Regardless of the near-term direction of the global economy, our Portfolio companies are performing well, and we expect them to continue to perform well through the cycle. We believe the Portfolio’s valuation is currently fair for what we consider to be a collection of some of the best companies in the world.
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