INTC - Distillate Capital Partners Q1 2021 Investment Letter

• 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 the S&P 500 Index by just over 3 percentage points in Q1’21 and lagged the Russell 1000 Value ETF benchmark by around 2%. Our International strategy trailed its MSCI ACWI ex-US benchmark by just under 2% in the quarter following substantial out performance in 2020.
• Walmart, Applied Materials, Anthem, Target, and Norfolk Southern were the largest sales in the quarter.
• The most notable change in the portfolio in the rebalance was the purchase of AbbVie at a 2.2% position in addition to the repurchase of Apple and Facebook at 2.0% weights.

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