BABAF - Wasatch Global Value Fund Q1 2025 Commentary

2025-05-21 16:47:00 ET

Summary

• Wasatch Global Value Fund—Investor Class returned 11.65% in the first quarter of 2024, outperforming the MSCI AC World Value Index.
• U.S. stocks were pressured by concerns that the new administration’s trade policies could lead to higher inflation and slower growth or even a recession.
• The Fund’s overall positioning remains relatively defensive. Entering 2025, we started to increase exposure on the margins to more economically sensitive stocks.

OVERVIEW

Uncertainty around U.S. tariffs weighed on global equity markets in the first quarter. U.S. stocks were pressured by concerns that the new administration’s trade policies could lead to higher inflation and slower growth or even a recession. In addition, the release of an AI model by Chinese company DeepSeek at a claimed fraction of the development cost of OpenAI’s ChatGPT led investors to question projected spending levels on AI-related infrastructure, driving a selloff in technology stocks. In a reversal of 2024 trends, value stocks notably outperformed their growth counterparts, and international stocks outpaced U.S. stocks....

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