UNCRY - Lazard International Strategic Equity Portfolio Q1 2025 Commentary
2025-05-27 00:30:00 ET
Summary
- During the first quarter, the Lazard International Strategic Equity Portfolio rose 5.1%, lagging the MSCI EAFE Index which rose 6.9%.
- The investment philosophy of the Lazard International Equity Platform is one of Relative Value where we contrast a company’s level and trajectory of financial productivity with its valuation.
- Style headwinds had been significant during the COVID-era, and we had expected them to subside.
Market Overview
- Driven by Europe, and helped by stronger currencies, International equities rose strongly
- International outperformed the US by the largest quarterly amount in more than two decades
- European defense spending and potential German fiscal spending are significant and contributed to strong European returns
- Tariff concerns are contributing to higher inflation expectations
- Amidst higher rates, Value significantly outperformed as banks extended their run within financials, followed by other outperforming sectors like energy and utilities
- Quality significantly lagged the market during the last two quarters