PLXS - Bernzott Capital Advisors U.S. Small Cap Value Fund Q1 2024 Commentary

2024-04-23 07:00:00 ET

Summary

• Bernzott Capital Advisors is an independent money manager for institutional and private clients. We are 100% owned by employees and an employee-related individual.
• Global financial markets rallied, with large cap technology stocks leading the way.
• The portfolio gained +8.5% on a net basis, well above the R2000V’s advance of +2.9% and above the R2500V’s rise of +6.1%.
• Energy holdings were the leading contributor to the portfolio's returns.

1Q24 Market Overview

Global financial markets rallied, with large cap technology stocks leading the way. Strong economic data and the continued momentum trade of the mega-cap stocks, especially those tied to AI, outweighed hawkish FOMC commentary of a higher for longer interest rate environment. Interest rates rose while expectations for a recession receded.

The FOMC stayed the course with no changes to rates and began telegraphing a higher rate environment with cuts being reduced from six to three. The benchmark 10-year Treasury yield rose from 3.87% to 4.20% marking the highest levels since late November. Oil prices rose as continued support from OPEC supply cuts and improving demand caused prices to rally....

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