JAZZ - Distillate Capital Partners Q3 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.
• The U.S. and International Fundamental Stability & Value strategies returned -1.49% and -7.06% on a net of fees basis for the quarter, respectively. The U.S. portfolio lagged its S&P 500 benchmark by around 2.1% in the quarter, causing the year-to-date performance to trail that benchmark by around 2.2%.
• The international portfolio likewise lagged itsbenchmark, the iShares MSCI ACWI ex-US ETF, in the quarter, and year-to-date performance is trailing the benchmark by a moresubstantial 6.6% after outperformance of around 8.0% last year.
• Distillate’s U.S. Small Cap Quality & Value strategy lagged the iShares Russell 2000 ETF and iShares Russell 2000Value ETF benchmarks modestly in the third quarter, but year-to-date net-of-fee performance of 25.83% remains well ahead ofboth the broader small-cap and value benchmark returns of 12.28% and 22.69%.

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