BWBBP - Riverwater Micro Opportunities Strategy Q2 2024 Commentary

2024-07-17 05:30:00 ET

Summary

• The second quarter marked a rebound from the first quarter's underperformance.
• Our long-term focus on acquiring high-quality companies at inflection points is designed to yield a more sustainable strategy and superior returns.
• The market may be underestimating the potential for more aggressive rate cuts in 2025, which also could be front-loaded.
• We continue to be optimistic about the healthcare and industrial sectors.
• While micro caps are still underperforming large by a significant margin, we think this is a good opportunity based on the risk/reward of large to small.

The second quarter marked a rebound from the first quarter's underperformance. We attribute this quarter's performance to strategic stock selection and a focus on sectors less impacted by recent selloffs, such as consumer discretionary and energy. This quarter showcased what we believe is the Micro Opportunities Strategy's inherent downside protection compared to the benchmark. While our portfolio may underperform during periods of heightened speculation, such as the meme stock craze which reemerged this quarter, our long-term focus on acquiring high quality companies at inflection points is designed to yield a more sustainable strategy and superior returns. ( Click here f or Q2 2024 Fact sheet with detailed performance reports)....

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