1Q2025 - Global Growth Commentary
Despite the sharp year-to-date selloff, we feel positive about our long-term positioning and will look to take advantage of compelling opportunities resulting from continued volatility.
- After a solid start to 2025 for global equities, sentiment turned sharply with the announcement of new U.S. tariffs. Volatility spiked, the Magnificent 7 fell, semiconductors dropped, and international equities outperformed U.S. equities amid a weakening dollar.
- The Global Growth Composite Portfolio underperformed the MSCI ACWI Index due to a rapid market shift. Long-duration growth stocks declined, and investors rotated to value and low-volatility stocks.
- Top relative contributors were Abbott Laboratories, NVIDIA (not owned), and Aon; top absolute contributors were Abbott Laboratories, Aon, and SAP.
- The greatest relative detractors were Globant, Amazon, and Novo Nordisk; the greatest absolute detractors were Globant, Amazon, and Alphabet.
- Trading activity increased this quarter as we trimmed for valuation, added reasonably valued safety holdings, increased select positions on volatility, and initiated new higher-growth holdings.
- We initiated new positions in Willis Towers Watson, Adyen, and Mercado Libre, and added to several existing positions. We did not eliminate any positions, but trimmed multiple holdings.
- We continue to seek out high-quality, competitively advantaged businesses with resilient revenue streams and solid balance sheets.