FA - The Olstein Funds H2 2023 Letter To Shareholders
2024-03-08 11:20:00 ET
Summary
- Olstein Capital Management follows an accounting-driven, value-oriented investing philosophy based on the premise that the price of a common stock may not reflect the true value of a company's underlying business.
- Both of our Funds, the Olstein All Cap Value Fund and the Olstein Strategic Opportunities Fund, achieved double-digit returns during Q4 2023.
- As the economic outlook continues to improve and inflation continues to drop (which we believe is likely to continue), it is important to consider the likely sources of future long-term, above-average equity returns.
- We believe that paying the right price for future appreciation is the single most important factor determining our Funds’ future returns and achieving their overall long-term capital gains objectives.
Dear Fellow Shareholders,
The Market
Aided by a strong year-end rally, equity markets delivered solid returns in 2023, with the broad Russell 3000 Index posting a return of 25.96% and the S&P 500 Index ( SP500 , SPX ) appreciating 26.29% for the calendar year. Despite these strong returns, equity markets faced significant challenges throughout the first nine months of the year. The Fed raised interest rates continuously throughout the period in an attempt to cool down a rising inflationary environment that was capable of hindering future economic growth (e.g., a recession). The Fed paused the interest rate hikes in September of 2023 (fearing an overreaction or even a recession), which ignited a strong market rally.
During the last quarter of the year, equity markets posted robust gains with the broad Russell 3000 Index appreciating 12.07% and the S&P 500 Index appreciating 11.69%. We also note that both of our Funds achieved double- digit returns during the fourth quarter with Adviser Class shares of the Olstein All Cap Value Fund ( OFAFX ) increasing 11.37%, and Adviser Class shares of the Olstein Strategic Opportunities Fund ( OFSAX ) increasing 14.44%....
The Olstein Funds H2 2023 Letter To Shareholders