4Q2022 – Global Growth Commentary

We think our Portfolio will show greater earnings resilience than companies in the top-performing industries of 2022

Read the full commentary here →

  • While the market experienced some recovery during the fourth quarter, the speed of the market decline and the aggregate losses as of year-end made 2022 one of the most challenging years for the market in many years.
  • The Global Growth Composite Portfolio (the “Portfolio”) trailed the MSCI ACWI (the “Index”) during the quarter as persistent and meaningful inflation and tighter monetary policy have driven a notable change in market sentiment and psychology.
  • The top three absolute contributors during the fourth quarter were Visa, Adobe, and Mastercard. The leading absolute detractors during the same period were Amazon, Alphabet, and Meta Platforms. On a relative basis, the top three contributors during the fourth quarter were Adobe, SAP, and LVMH, and the leading detractors were Amazon, Alphabet, and Meta Platforms.
  • We sold Nike, Adidas, Starbucks, and Meta Platforms, initiated positions in Thermo Fisher Scientific, ServiceNow, and Estée Lauder. We added to Microsoft and trimmed Visa and Mastercard. In aggregate, we added what we believe are great businesses and moved on from areas of concern.
  • Despite the likelihood of a recession next year, we are optimistic about the businesses in the Portfolio, their ability to weather the business cycle, and to continue to deliver strong long-term earnings growth.

Read the full commentary & disclosures here →