TALO - Riverwater Sustainable Value Strategy Q1 2024 Commentary

2024-05-12 12:05:00 ET

Summary

• Riverwater Partners is a Milwaukee-based investment advisory firm dedicated to responsible investing. Our mission is to make the world a better place by growing wealth through sustainable investing.
• In Q1 2024, the Riverwater Sustainable Value Strategy outperformed its benchmark, the Russell 2500 Value Index.
• While extra innings may be possible, the next five and ten-year outlook for small versus large appears highly enticing.

Small vs. Large Caps

In Q1 2024, the Riverwater Sustainable Value Strategy outperformed its benchmark, the Russell 2500 Value Index. Small-caps continued what appears to be a new bull market since hitting bottom last October. Small-caps still have significant ground to cover, having last peaked in 2021, while large-caps have continued to hit record highs. Large-caps once again outpaced small-caps this quarter, marking the 14th year of large-cap dominance. The recent market leaders' performance is fueled by the remarkable growth of artificial intelligence ('AI') and the anticipation of rate cuts by the Fed this year. Many small-caps have exposure to AI, and our portfolio has benefited, as we will discuss below....

For further details see: