Webinars [[{“value”:”Original broadcast details
Date: Thursday, October 10, 2024
Executive Summary
3Q24 was a great quarterOur CS composite produced an 11.8% net return, outperforming all our benchmarks. We outperformed the S&P 500 by 5.9 percentage points and the S&P 500 Value by 2.7 percentage points.
Mega-cap growth stocks underperformed
The mega-cap growth stocks that propelled the market for six quarters since the start of 2023 became a drag on market performance this quarter. The Magnificent Seven reduced the S&P 500 returns by about two percentage points, and more broadly, the S&P 500 underperformed the S&P 500 Equal Weight by 3.7 percentage points.
Our non-U.S. portfolios also performed well
Our Global and GIVES portfolios substantially outperformed the MSCI World Index by 3.7 and 7 percentage points, respectively, this quarter while our International portfolio performed in line with the MSCI EAFE Index.
Internationally, equal weighted indices outperformedAs with the U.S., since the start of 2023, global markets have been led by the mega-cap stocks. In this quarter, that prevailing trend reversed, and the equal-weighted indices outperformed.
Our valuation spread relative to the S&P 500 remains extremely wideThe P/E multiple of the S&P 500 expanded this quarter, rising to 21.7x, which is 36% above its average since our inception, and is 76% higher than our CS portfolio. Given the superior growth profile of our portfolio, we believe it should not trade at a discount to the S&P 500, and that over time the valuation spread should compress and drive substantial outperformance in the process.
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