BABAF - Wasatch International Value Fund Q1 2025 Commentary
2025-06-17 13:08:00 ET
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. European equity markets rose as Germany’s parliament repealed the nation’s “debt brake,” thereby paving the way for massive spending on defense and infrastructure. In Japan, returns were dampened as the central bank embarked on a rate hiking cycle. China was the standout performer, with equities boosted by government stimulus efforts and optimism around AI in the wake of DeepSeek....
Wasatch International Value Fund Q1 2025 Commentary