Q1 2024 / Strategy Update

The strong equity rally that started last October persisted in Q1 2024. 

Profitable technology companies and growth stocks in general continued to lead the way. Two notable exceptions to the positive Technology trade in the first quarter were Apple and Tesla, which fell -11% and -29%, respectivelyi. In March, the U.S. Department of Justice sued Apple, accusing the company of monopolizing smartphone markets. And Tesla’s woes were largely tied to the quarterly decline in vehicle deliveries, the first time that’s happened since 2020. We have never owned Tesla, and we sold Apple on March 5 following a solidly positive tenure in our Core Strategy. 

On the plus side, the top three performing sectors in Q1 were Communication Services (+15.8%), Energy (+13.7%), and Technology (+12.7%). Communication Services was dominated by Meta Platforms (+37%), and the top contributors to Technology returns were Super Micro Computer (+255%), Nvidia (+82%), and Micron Technology (+38%)ii. Fortunately, we own all of these names.