XOM - Distillate Capital Partners 2020 Year-End Letter To Investors

• Distillate Capital Partners was formed in 2017 and is based in Chicago, IL. The fund strategies use cash-flow-based measures of value and quality that are designed to avoid accounting distortions that we believe have rendered many traditional metrics less relevant in an increasingly asset-light world.
• Distillate Capital’s U.S. FSV strategy outperformed both its S&P 500 Index and Russell 1000 Value ETF benchmarks in 2020 and our International strategy substantially outperformed its MSCI ACWI ex-US benchmark.
• Overall, while the broad market looks somewhat expensive due to particular pockets where valuations are stretched, owning U.S. equities does not inherently mean taking on valuation risk as there is still a meaningful portion of the market that looks attractive.
• We do not purport to know what the future will hold, but we continue to believe that owning a diversified portfolio of attractively valued stocks with stable fundamentals and low leverage is a prudent strategy over the long-term, regardless of the myriad environments that may be encountered in the shorter term.

For further details see: